What Is Insurance Worth?
Given all of the expenses that come with owning a business, it's reasonable to wonder if insurance is just another seemingly useless expense. The answer is no, it's not useless -- in fact, insurance is essential. Not only will a good policy pay for all legal expenses defending your business in case you are sued for negligence, it can also save your corporate image by paying claims to people who are rightfully entitled to compensation.
To purchase such a policy would require a knowledgeable broker who can identify those underwriters who have a no nonsense approach when it comes to settling claims. A good broker should also offer 24/7 resources such as toll free phone access and handy person assistance in case of emergency.
A good insurance broker should not just try to just sell insurance, they should be asking detailed questions in order to best discover all your normal and typical activities and planning around these events with solid protection and robust claims handling. Upon completion of the analysis you should be made aware of all the different types of insurance policies that are available to best protect your wealth.
So when deciding insurance's worth; ask if would you be able to withstand a loss without it?
Some tips on insurance buying
- Ask your insurance provider for an "All Risk" policy whenever possible. Meaning, every peril is included except for the list of exclusions they provide. Find out what these exclusions are now, and as long as your claim doesn't fit in the exclusion; you're guaranteed, by law, to be covered.
- Not all insurance policies -or brokers are alike. While price variation among companies may sound enticing, beware. It may not be the ideal company to deal with at claims time. Get a feel for the broker and how they present knowledge on your business and how you operate. A good relationship with your insurance broker is key to protecting wealth.
- Setting a higher deductible can lower your premiums.
- Review your insurance needs on a yearly basis. Economic circumstances may have changed during the year, and your property values may have risen or fallen. Your insurance limits should change too.
- Take steps to prevent losses from occurring in the first place. The more measures you take to protect yourself and your property, the less you will have to rely on your insurance, and the less it will cost you in the long run.
As always, it's better to ask a professional for advice. We don't pressure and your first call is always FREE. Just contact us.