Commercial Insurance Tips
Important Coverage Considerations
1. Buy Adequate Policy Limits – A basic area of insurance management that deserves more attention than many firms give it is the selection of policy limits. Most uninsured losses are probably caused by selecting inadequate limits.
2. Report Potential Claims Promptly – All insurance policies contain some type of requirement to report “as soon as possible” accidents or occurrences that may result in a claim. Failure to promptly notify your insurance broker or insurance company of known events that may lead to a liability claim can result in denied coverage for claims eventually made in conjunction with the occurrence.
3. Consider the Implications of Operational Changes – Many companies make the mistake of not considering in advance the insurance implications of a new acquisition, merger, product or service. After the fact, companies often learn that they cannot obtain liability coverage or learn that it will be very expensive to cover. Consider approaching your insurance broker to find out the repercussions of your potential change in operations.
4. Comply with Additional Insured Requirements – It has become common practice for one party to require the other party to include it as an “additional insured” on their policy. Failure to add an “additional insured” to a policy can lead to uninsured losses. It is important to have a procedure in place to review all contracts that may have insurance requirements placed upon you.