CHOOSING BUSINESS INSURANCE COVERAGE
How much Business Insurance Coverage will I need?
Only you, the business owner, know what is adequate insurance coverage for your operation. In other words, what you can afford to write-off in the event of a loss (e.g. fire, theft, etc.) for which you have no, or limited, coverage.
The insurance coverage you choose will be the difference between security against unforeseen losses (including lawsuit defense and judgment) and responsibility for such losses out of your own pocket. If you do not feel the possibility of risk of loss outweighs the payment of yearly premiums, then going without insurance may work for you. In most cases, a loss can be catastrophic, or severely hurt a business, and the premium cost is worth the peace of mind against sudden and accidental losses.
So, now that you know it's wise to carry insurance, what's next? Insurance is never really important until a loss occurs.
The Five Principals of all Insurance Claims
All insurance claims turn on five principles, involving the person, property, peril, exclusions and conditions:
- Is the person involved in the loss or accident an insured person under the policy?
- Is the property being claimed listed on the policy declarations?
- Is the event causing the loss or accident covered or excluded under the policy?
- Does the loss or accident meet the conditions set forth in the policy?
- Is it limited in any way by the conditions set forth in the policy?
