What are the guidelines used to evaluate whether or not a risk is insurable?
In today’s small business insurance environment, not everything that puts your company at risk is insurable. There are many things that your business owner’s policy just won’t cover and it is important to recognize these risks. There is usually a way to cover these risks, but they might fall outside of your existing policy. Oftentimes, an umbrella policy might help to cover some of these outlying risks.
The first step is identifying what your current business insurance policy covers. It is easier to work backward by obtaining extra coverage for what your current policy doesn’t cover. Did you recently start using outside contractors to help your business get some work done? You might need some extra insurance to help cover you professionally for the work that was performed by the contractor but still presented to your client. There are a handful of other scenarios that I could rattle off, but it will be best to sit down with your insurance agent and discuss your specific coverage.
Sometimes certain occurrences cannot be covered no matter what. It will be important to pay attention to these areas when interacting with clients and conducting everyday business at the office. Just because a risk cannot be covered does not mean that the risk cannot be reduced.
Don’t get caught thinking that you are covered for a certain risk when in reality, you aren’t. Avoid surprises and contact your business insurance agent today!