7th January 2010
Any successful business needs to have coverage for their company. Knowing how to read an insurance quote is an important aspect of having the right policy in place. There are so many possibilities for your business, at any time something unforeseen could happen and cause complete chaos within your business.
Your company should do their due diligence on every coverage provider available so that they can make the right decision when choosing one over the nest. Not just any coverage company will do, it is important to find one that will cater to your business needs. The cheapest or most expensive companies are often not the best choices for your company.
The first aspect of understanding your insurance quote is to understand that the premium or price of the policy should be reasonable and within your company’s budget, if not then you are just wasting time. After determining what seems like a reasonable price then your business should determine what kind of coverage they need. For instance special event coverage is different than other types. It is suggested to do your research and see what you need.
So now your business has an idea of what they would like to spend and what type of coverage they need so the next step is acquiring the coverage. Contacting multiple providers is recommended so that you can acquire several different policy and premium options.
When looking at the insurance quotes you have received you need to understand what everything means. Some of the common terms are:
● Premiums – expenses incurred by a business in respect of different types of policies
● Limits – the extent the insured can get paid
● Each Occurrence – per claim amount
● General Aggregate – the maximum limit of coverage payable during any given annual policy period for all losses other than those arising from the products and completed operations hazards
● Products/Completed Operations Aggregate – the maximum limit over the general aggregate during any given annual policy period that is payable
● Personal and Advertising Injury – the maximum limit payable during any given annual policy period for all losses personal and advertising related
● Fire Damage Legal Liability – the maximum limit payable during any given annual policy period for all losses associated with fire damage
Getting to know these terms as well as other industry specific terms that you can find on the internet or by calling a provider is the best way to understand your insurance quotes. The next best thing to do is ask a professional to advise you in your coverage decisions. There will be similar text in every policy but it is the responsibility of your agent to discuss these things with you in detail. If at any point your agent seems unwilling to give you information then you should seek another agent for help.
Your agent should be professional and willing to answer any questions you may have. They should also be available at any time. However it is important to know that the agent sets the policy up by securing an underwriter for your business. The underwriter actually assesses the business and sets up the premiums according to his risk assessment that is if the underwriter even believes the business is insurable. Be sure to know everything you can about your insurance quotes because in the long run they can save you and your business!