When buying a new business insurance policy, asking the right questions is critical before agreeing to the purchase. Next to your home, your business is probably your largest investment, your biggest asset, and it needs adequate protection from unforeseen circumstances.
Plan on never investing in an insurance policy without a full understanding of exactly what you and your business will get out of that policy. Far too many people just skim over the details, looking merely at the price.
Certainly it’s nice to pay a low price for New York workers comp insurance, but it should not be the only thing you focus on when shopping for new coverage. What you actually get for that money is far more important as is an understanding of exactly how the policy works. Here are 5 important questions to ask up front when meeting with an insurance agent. Make sure to get answers to these questions prior to signing your name or mailing in that first payment.
1. What are the limits on specific categories?
Certain categories come with fixed limitations. For example, if someone robs your business and take vital office equipment, your policy will only pay up to the insured amount you have listed on the policy, regardless of the policy’s size. So, if someone robs a jewelry store and that company only has $5,000 covering theft, the owner will only receive that $5,000 even if the value of the stolen jewelry is triple the insured amount. Check your policy limits and extend them if needed.
2. Do I need to provide proof of ownership?
When a loss occurs to something you own, you may be required to prove that to the insurer. Whether the loss is related to a fire, robbery or something else, you want to have on hand pictures of the items, manual, receipts and things of this nature to prove your ownership.
3 Should I itemize my possessions at the beginning?
Many commercial insurance companies ask business policy holder to itemize all their more expensive possessions up front. This list can be turned in and used as proof of ownership in the future, saving you the trouble of trying to figure out exactly what was lost. Some people will do this simply by making a video of everything in their building so it can be analyzed in the future should a loss happen.
4. Do I have flood coverage?
The majority of business and home insurance policies do not come with standard flood coverage. If there is a flood and it isn’t listed in the policy as a covered event, then none of the damage related to the flood will be covered by the carrier. You will need to purchase additional coverage and have it added to your existing policy as an extension.
5. What is the penalty for a late payment?
You may be given a certain amount of late payments that you can make without penalty, or you may have to pay a late fee each time. It is good to ask about this right at the beginning so that you know what to expect if you put that check in the mail a few days late. Also, you may want to ask about online payment options, which can be used for instant payments if you want to avoid any potential late fees.
If you need help reviewing your existing workers compensation insurance or other business lines, give Enforce a call. We’ll offer a free policy analysis and quote to help you make the right decision for your business needs.