Broker Check

Property and Casualty Insurance: Covering Life’s Uncertainties

| January 22, 2019
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Property and casualty insurance provides a cushion for many business owners in the event that their companies weather a disaster or other loss. But how do you know if you have sufficient coverage? On the one hand, excessive insurance could result in unnecessary expenses, yet insufficient coverage could leave you open to excessive risk and a potential for loss. 

Evaluate Your Business Insurance 

Your business needs change over time, often requiring changes in the amount of appropriate insurance coverage. To help ensure that you are adequately covered, be sure to review your policies in the following areas: 

Building coverage on a replacement cost basis. In the event of a fire, hurricane, earthquake, or other catastrophe, this coverage covers the cost of replacing damaged or destroyed property with new property of like kind and quality without any deduction for depreciation or obsolescence. A depreciation deduction of 30% or more in the event of a large loss could leave you with a substantial shortfall to cover repairs. 

Business interruption insurance. This type of insurance can cover operating expenses during an interim period if work is temporarily halted or interrupted due to incidents, such as fire, theft, or an explosion. 

Liability coverage. While all businesses have different needs, business secure liability coverage of at least $1 million for business-related injuries and accidents is generally recommended. 

Protection for valuable documents and electronic records. Important business-related records may be difficult or impossible to replace. While many insurers automatically provide coverage for them, evaluate your policy to be sure your coverage adequately meets your needs and addresses potential risks. 

Protection from theft in the workplace. An insurance policy should provide coverage in the event company property, or employees’ personal property, is stolen, damaged, or destroyed at the workplace. 

To protect your business, you may want to consider periodically reviewing your property and casualty insurance to ensure it provides an adequate level of protection. Contact your qualified insurance professionals who can help evaluate your business risks and offer advice for obtaining the appropriate insurance coverage.

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