There are lots of things business owners should think to make their business operation running. But it’s quite easy to know how you overlook on something so essential for your insurance coverage. Typically, an independent business policy covers lots of perils. For instance, a slip-and-fall incident is considered a liability on a consumer’s accident on your property. As part of the average policy, this thing must automatically be covered. However, many businessmen today are being challenged with multiple dangers that rise above the normal slip-and-fall situations. These are coverage elements which exceed the normal policy and they are done through endorsements. Endorsements are additional coverage elements to the basic coverage.
If you haven’t done an in-depth review of your policy with a professional insurer, then your policy might have been missing these important endorsements:
1. Business interruption/loss of business income coverage. Basically, policy coverage offers a significant financial relief to restore your condition in case of a loss covered. If your business building, for instance, got burned by fire, then your basic coverage will pay an amount to replace or repair the covered property—up to its limit. What about the loss of income during the period your company stopped to give way for repairs? What will happen if it takes 7 weeks or 5 months? Literally, business interruption/loss of business income coverage could make or break your business.
Be sure you know precisely the amount of income you lose in the event that your business temporarily closed. While annual income is not the same, have a review of that coverage and keep it updated. If the last time you reviewed your policy was a decade ago, then your business can be vulnerable this time.
2. Spoilage coverage. A huge company loss could occur from the failure of cooling units. Bars, restaurants and inns consider spoilage coverage because of the big amount of temperature controlled inventory at hand. Nevertheless, it’s not only the food industry that considers this coverage. In fact, you can take some other items in your business.
What happens if the furnace unit was down during winter or if your air conditioning unit broke down during a long weekend summer time? Are there other products that were affected due to the sudden change of temperature? Your business must consider all these things.
3. Data compromise coverage. Today, almost all businesses are highly dependent on the digital technology—more than before. Probably, your main business function is about accumulating and storing data, as well as transmitting them through the Internet. It is likely that a business cannot continue to operate without fixing all this chaos. Lawbreakers around the world are being engaged in consistent and unauthorized efforts to grab confidential information. What will you do once a credit card number of your customer was removed from your business system? How will you deal with it including the cost? Have you known if your policy covers it or not?
4. Workers compensation. Most of the states require that worker’s compensation coverage should be incorporated and be in place. If you miss this coverage, then you’ll end up paying a huge amount to settle to employees who got injured while working. Unfortunately, this worker’s compensation is not included in the business owner’s insurance policy.
So to be sure what components your insurance policy covers, it’s time to examine the old insurance policy and find out things which are covered and are not.
To get more information about what specific coverage your business insurance is missing, please contact us at DMG Insurance and Financial Services, Inc. (http://www.dmginsurance.com) at 543 N State Road 7, STE 106, Royal Palm Beach EL, 33411, phone 561 422 7071, Fax 561 422 7072.