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What You Need To Know About Business Insurance Policy Coverage
Author David Schneider | May 23,2007
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As a business owner, it is very important that you make sure you have enough coverage for your business. It is expensive, but it could potentially save you from a total loss, and enable you to get back in operation again. Here are some important things you need to know about business insurance.
Consider A Package Deal
Most business insurers carry package deals which will generally provide for the more common things that your business needs - and then some. Because they deal with many businesses, they have a good idea as to what many of your needs are. You certainly want to start out by looking at package deals. Package deals are cheaper than purchasing separate types of insurance for each need. Many small business owners get a package plan simply known as BOP - Business Owners Plan.
Talk To An Agent
By going to QuoteMatch.com first, and obtaining ideas about what minimums are required in each area, you can get several quotes and then make some intelligent decisions. Another way to get an idea about your specific needs would be to find a company similar to your own, and talk to them about recommended coverage. Also, consider recent lawsuits that may pertain to your field of industry.
Know Your Coverage
If you should suffer a loss to your business that shuts its operations down, then you will need to have Business Interruption Insurance. This insurance provides you for the loss of income after operations are forced to a close because of the loss. There are different ways that this could happen, though, and they will need to be in the policy in order for you to be covered. It may include things like disruption of utilities, inability of a supplier to reach you, entrances and exits blocked, action by civil authorities, and more.
Have Your Paperwork Ready
Business insurance policies will often have a wait period. This period extends between the time of the loss and a specified time after it when the insurance coverage begins. You select the time frame. It can be as little as an hour or so after the loss occurs or as much as a week later. Be sure that you know the time frame involved.
When there is a loss, you need to be ready for it. You should be ready to provide the insurer with detailed proof of daily income and expenditures because your reimbursement will be based on these records. Not only should they contain exact dollar amounts, but also they need to show current dollar amounts, so that inflation is not a factor. If the only accurate records you can provide are old - you will have a greater loss than necessary. The quicker that these records can be given to the insurer, the sooner you can get the money you need.
Other paperwork should also show the furniture and contents of your building. This list should include date purchased, and the cost. It also needs to be regularly updated.
Coinsurance Clauses
Most business insurance policies have clauses in them that state that you are responsible to provide a certain percentage of insurance on the building. This figure is often around 90 percent of the value of the building. If you, however, only insured the building for half that amount, then you would only be entitled to 50 percent of the loss.
Extra Expense Insurance
Here is another aspect of your business insurance that you do not want to leave out. Simply put, when your present facility becomes unusable due to loss, then you are going to need a new facility - with equipment. This part of the policy will cover an event like this and enable you to get the equipment you need in order to carry on your operations. Standard business interruption insurance will not give you this coverage.
Many other situations may apply, too. You may need liability, property damage, and auto insurance. Theft coverage that includes every type of theft possible - from stock and money thefts which include both outsiders and employees. Make sure that you stay informed about these and other needs.
You can start your search for the business insurance needs of your company by filling out a simple form at QuoteMatch.com. From QuoteMatch.com, you can receive a number of quotes from insurance brokers who will give you their best quotes, and help you with other business insurance needs and decisions. |
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