At WPL Insurance Services in Santa Clarita, CA, we have seen many cases of business owners ending up with a commercial insurance policy that is not the best for their company. Some of them erroneously pick the wrong policy because they were not duly informed before they made the decision.
So, we want to discuss the things to consider before choosing any commercial insurance policy.
1. Limits of liability
This is the maximum amount an insurance company will pay for a single claim no matter what the situation is. The problem with this is that it may not be enough to fix the problem. So, if you feel the limit is too small, you have two options. Find out if you can increase the limit. If not, then you should look for another policy.
2. Deductible Vs Premium
The deductible is the amount of money you pay out of pocket to fix a covered issue before your insurance company pays the remaining part. For example, if you choose a policy that requires $20,000 deductible. When you make a $200,000 claim, you’ll have to pay $20,000 and your insurer will pay the remaining $180,000.
3. Does it cover all your risks?
You must confirm what the policy covers. For instance, if you run a website development company and you don’t need vehicles to carry out your business activities, you don’t need a commercial auto insurance policy. It is a mere waste of money.
4. The credibility of the insurance company
While we pay claims promptly, some insurance companies may delay your payment, hoping to find a hole in your situation so they can decline your claim. That is why you should purchase insurance from only a reputable insurance company.
To summarize this piece, the things to consider before purchasing any commercial insurance policy are:
- Limits of liability
- Deductible vs premium
- Does it cover all your risks and do you need the coverage it provides?
- Is the insurance company reputable?
For more information, contact us at WPL Insurance Services in Santa Clarita, CA.