When it comes to business insurance, it’s not just about the lowest premium. Your policy should be in line with your company’s operations, property, staff, contracts, and potential liabilities. An informative discussion with a commercial insurance agent will expose coverage deficiencies before they become costly issues.
When considering signing a policy, you should ask questions to understand what is covered, what is excluded, the extent of protection that you have, and what will happen if you should have to make a claim.
What Risks Does This Policy Actually Cover
Be basic and ask the insurance company to tell you what the policy covers and if it’s appropriate for your business. Some of the insurance types you might require include general liability, commercial property, workers’ compensation, commercial auto, professional liability, employment practices liability, or umbrella coverage, depending on your business. Remember that a traditional business insurance policy does not address all of your company’s risks.
What Are the Major Exclusions
A policy is more about what it does not cover than what it does cover. Inquire with the commercial insurance company about the most crucial exclusions and clarify them simply.
For instance, there are specific causes of loss limitations for business interruption coverage. Be specific and ask what would not be covered in common claims? Are there any risks my business would want to have insurance for separately?
Are Coverage Limits and Deductibles Appropriate
Having a low premium may seem appealing until a major claim arises, revealing that you don’t have enough coverage. Inquire about how the insurance company calculated the coverage amounts, and whether these amounts are based on the value of your property, revenue, equipment, payroll, and liability.
The higher the deductible is, the lower the premium, but the more expensive the business will be after a loss is covered. Ask for examples of the type of claim you would experience and what you would expect to be covered by your insurance and what you would be responsible for.
Do Any Additional Coverage Is Needed
A typical policy might not cover all exposures. Inquire if a separate policy is suggested for your specific operations. Endorsements can change the kind of coverage provided or cancel it, or add new coverage, and can also raise or lower the limits of coverage under a policy.
Depending on your company’s activities, you might want to inquire about cyber risks, professional services, employment-related claims, commercial vehicles, equipment, business interruption, or umbrella liability claims.
How Does the Claims Process Work
When something goes wrong, insurance plays a major role; know the process before you buy insurance. Inquire about the individuals to whom claims should be reported, how promptly claims should be reported, any type of documentation required, and the process for investigating claims.
Determine if your agent will arrange for the process, or if you are responsible for doing so with the carrier. Also, it’s wise to request an example of how the policy would handle a typical loss that might happen to your business.
