In May we talked about the “Hard Insurance Market” and we are certainly feeling it more and more. Affordability and availability in certain classes are a huge issue. We are getting more requests for “quotes”. “How much would you charge for my insurance?”
Well that depends. How much protection do you want? Are you prepared to spend some time figuring that out? When was the last time you sat down with your insurance provider and reviewed your business operations, property values, values of stock and equipment? Are you at risk for a cyber-attack? Can you afford to operate if your website is subject to a ransom?
We don’t object to going to our medical doctor to have our annual checkup. In many ways, insurance shouldn’t be any different. Although it does seem to be standard practice to get the renewal, check the price and then move on. That’s unless the price has increased. Then we want a “quote”.
As a broker, it’s my responsibility to ensure that I understand enough about my client’s business to recommend adequate and suitable insurance protection.
Sadly, in the majority of cases with my new clients I deal with, we find out that there are gaps in their insurance that they were not aware of.
Let’s look at some examples:
General Contractor had leased a $150,000 piece of equipment on a short-term basis and advised his insurance provider. The broker told him it was covered. Upon review of their existing coverage, there was no endorsement or policy change reflecting that coverage.
· My advice – get everything in writing!
Wholesaler had ordered additional stock and had it stored at another location as he had no space at his premises. He failed to notify his insurer and assumed that it would be automatically covered as he had a sufficient amount of insurance to cover all his stock.
· My advice – Sometimes there may be a clause in the policy which will extend the cover for a short period of time. If so, it will be clearly stated in your contract. In my new client’s case, it was not included in the contracts. When in doubt call your insurance broker. It can be added for a small additional premium.
Home-based business – Caller operates an esthetics business from her home in the corporate name. She has Professional Liability Insurance for her business but no Commercial General Liability. If any of her clients are injured e.g. (slip and fall on the ice or snow) she has no insurance protection.
· My advice – She should have been advised to see if her home insurer will provide her with a home-based business liability extension on her home insurance. If not, she should purchase a Commercial General Liability policy.
These are just a few examples of situations that can lead to a costly claim with no insurance coverage.
When in doubt ask and get it in writing.
For more information contact Heather at firstname.lastname@example.org or text or phone 587-597-5478.