Ensuring Cost Efficiency with Your Business Insurance
If you would like to protect your business, insurance is crucial. But while there are many factors to look into when deciding on a policy or an insurance provider, cost is one aspect that is common to all. And to get the best protection for the least possible cost, you have to choose the right limits and deductibles, as well understand common elements and exclusions.
Best Coverage, Best Price
Obtain and compare a number of quotes from reputable insurers and independent agents, rather than limiting yourself to a single prospect at a time. You can’t say a policy or insurer is the best if you haven’t seen how it compares with the others.Before comparing, however, ensure that you know what is and is not covered in every policy.
Home Businesses
For owners of small home-based businesses, a rider may typically be added to their homeowner’s policy, making it unnecessary to buy a separate policy.Discuss your specific situation with an agent so you understand what is best for you.
Usual Elements and Exclusions
Endorsements
In some cases, you can pay a higher premium for an “endorsement,” which is an amendment to a comprehensive policy where a common exclusion will be given coverage. When liability involves a unique risk, such as an accountant’s professional services, a specialized policy will be needed, aside from a comprehensive general liability insurance policy.
Occurences
A comprehensive policy provides protection against liability in any “occurrence” – personal injury or property damage – as long as the policy is valid at that time.A lapse in insurance coverage instantly makes you vulnerable.
Deliberate/Expected Damages
Court policy states that for a claim to be denied, it is not enough for the insurer to establish that a “reasonable person” would have predicted the outcome.Rather, they must also be able to show what the insured party’s thoughts were at the time, which is rather next to impossible.
Intellectual Property, Advertising and Similar Issues
Remember that insurers have more recently excluded for patent, trade name, trademark infringement, and copyright, and are narrowing their definition of “advertising,” in order to restrict or deny coverage. Any proposed comprehensive general liability policy for such coverage must be thoroughly examined.
Data Protection
“Property damage coverage is only provided for “tangible” properties or “physical” damages. Whether computer data is “tangible,” or capable of “physical” harm is to be debated on. So if you are in the computer hardware, software, or programming industries, you have to be very sure that you will get the coverage you need.
Property Insurance Differentiated
Lastly, remember that on its own, comprehensive general liability coverage cannot protect you against property damage. Instead, property insurance should be part of the policy.