It is imperative to review your business insurance policy with your agent/broker on an annual basis. Here are some areas you should concentrate on, but they are by no means all inclusive. You should get your agent to confirm important areas of coverage for your business.
What are your policy limits?
What is covered?
- Other structures
- Business personal property
- On-site vs. off-site
- Computers and other related equipment
- Electronic Data Processing
- Indoor vs. outdoor
- Demolition/Increased Cost of Construction
- Debris Removal
- Mechanical Breakdown
- Electrical currents
- Artificial vs. natural
- Temporary Precautionary Repairs
- Mobile equipment/vehicles
- Accounts Receivable
- Valuable Papers and Records
- Fine Arts
- Business Income
- Ordinary business expenses (salaries, wages, health insurance, insurance, rent, etc.)
- Extra expense incurred in case of disaster
- Civil Authority/Ordinance or Law
- Restricted access to the premises due to damage to your premises or the surrounding area
- Sewer/Drain back-up
- Anything business specific that is necessary for the operation of your business.
- Scheduled items
What can possibly be excluded under the terms of the policy?
- Nuclear, Chemical or Biological
- Back-up of sewers or drains
- Underground water that presses on or flows/seeps through foundations, walls, floors, paved surfaces, basements, door windows or other openings.
- Overflow of rivers, streams, lakes, oceans, gulfs, canals, etc.
- Volcanic Eruption
- Soil settlement
QUESTIONS TO ASK ON COVERAGE:
A. Are your policy limits sufficient to compensate you for all losses?
- Consider all areas of coverage listed in the Coverage Section ·
- Increase or decrease coverage as need annually
- Do you need Excess Coverage above the policy limits of your primary insurance?
B. Is the policy a Replacement Cost or Actual Cash Value policy?
- If Replacement Cost, do you have to complete repairs prior to receiving Replacement Cost?
C. What is your deductible?
- Is it a percentage deductible or fixed deductible?
- Is there a particular deductible for a named storm (Hurricane) or any other particular area of coverage?
D. Is there a Co-Insurance penalty?
- Discuss the meaning of co-insurance with your agent/ broker and the potential implication of the co-insurance penalty if you are not adequately insured
E. Is there a waiting period before coverage becomes effective?
F. What are the covered causes of loss?
- In other words, what needs to happen for the business to be covered under the policy?
G. Do I need or want additional coverage to cover those items that may be excluded in the policy?
H. Are there special endorsements specifically applicable for the State in which my business is domiciled?
If you are interested in making an insurance claim for your business, you can learn about your legal rights from an experienced New Orleans business attorney by filling out our free, no obligation case review form located on this website.