|
Learning Center -> Business Insurance
|
Business Insurance Checklist Part 4
8. Extra Expense Business Insurance
Sometimes business owners think that the are covered against everything with business interruption insurance. However, there are additional costs beyond loss of location or income that may happen if you have property damage. You may need to rent space short term until your building is repaired or rebuilt. You may need to replace office equipment or hire security. These costs are considered extra expenses and are covered under extra expense insurance. Make sure this is included in your plan, and that you have adequate coverage.
9. Co-insurance Clause
Co-insurance is one of the many confusing aspects of business insurance, and can cause you to incur penalties if you are not insured adequately. Rodman uses the following example of a co-insurance clause:
If you own a building that is worth $1 million, and your co-insurance has a value of ninety percent, you must insure the premises for $900,000 if you want to collect the full value of the policy. This works the same way with smaller claims as well. You need to insure for ninety percent to collect for the full value of even a $5,000 claim. If you only insure for $450,000, you will only be able to collect $2,500 of the $5,000 costs.
10. Ask Plenty of Questions and Get Help if Necessary
Your salespersons may not know everything you need him or her to know in order to serve your needs. A salesperson is there to sell policies, not necessarily to find out what policies are best for a certain client. Rodman says that "Many agents and brokers are excellent at what they do. But others do have technical weaknesses. Not everyone is an expert on the technical details. There' s a real variety as to the depth of salespeoples' technical expertise."
Remember that the details can make or break you in a time of crises. Make sure your broker or agent has certifications. Some of the titles to look for are:
- CPCU (Chartered Property Casualty Underwriter)
- CIC (Certified Insurance Counselor)
- AII (Accredited Advisor in Insurance)
- ARM (Associate in Risk Management)
|
