Things You Need to Prepare Before Purchasing Business Insurance
When you purchase business insurance, you need to spend some time checking policies out to find out which one of them provides you with the best protection against losses incurred after a disaster.
Here are some of the most important things that should be part of your business insurance purchase checklist.
We all know how important business insurance is. Insurance actually keeps our business operating and in healthy condition even after a disaster. A disaster means losses for business; insurance protects you from those losses so you won’t have to close doors permanently after a disaster. In the wake of the September 11 attacks, businessmen are now conscious and aware about the importance of purchasing business insurance for their own good.
Since it is very important, choosing a business insurance policy is not a task to be taken lightly. You need to invest in a policy that will actually protect and indemnify you from losses and not limit the compensation you get in the event of a disaster. Here are some things you should know before purchasing insurance:
Before Applying, Make Sure You Have All the Necessary Information
Insurance companies require certain information about your business before they can offer you a policy. This information includes the properties that your business has, for example, the buildings that your offices are located in. If you own or have constructed an entire building, prepare information such as the size of the property, the property’s value, the safety measures inside each building, and the building structure.
Property valuation is usually done by appraisers. Insurance companies have their own appraisers as well. However, insurance institutions are businesses as well and would very much want to pay up as little as possible to you in case of disaster to protect themselves and this would include giving erroneous valuation information. Make it a habit to have someone appraise your property every year so you can make appropriate claims when the time comes.
Make Sure the Policy’s Terms Are Favorable to You
Read through all the documentation before signing a contract with any insurance provider. Look through all the provisions of the policy and look for important information like:
- Waiting periods or deductibles
Waiting period is counted in days before the business is compensated for the disaster. Deductibles, on the other hand, are definite values that specify the maximum amount of damages that you are not compensated for.
- Extended indemnity period
Sometimes a business does not always get back what it loses from the disaster immediately after it reopens for business. That’s where an extended indemnity comes in; the period is the number of days after reopening where you are still eligible for loss compensation.
- Exclusions and limitations
This is the most important clause of the insurance policy. Read through this clause and determine if you are well protected with the limitations specified in the policy.
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