The cost of insurance protection is only one of the factors that you should consider when inquiring into coverage for your business. Options are available that may reduce your policy premium while narrowing the scope of the insurance protection at the same time. Below are examples of some of the coverage options that are currently available:
Property coverage is generally written with a flat deductible amount. As a general rule, as you increase the deductible amount, the property coverage premium will reduce. In other words, the property premium for Building coverage with a $10,000 Deductible will cost less than the same coverage written with a $1,000 Deductible.
Some coverages, such as Business Interruption and Extra Expense, may be written with a waiting period stated in hours rather than as a dollar amount. Generally, a longer the waiting period is less costly than a shorter period. Therefore, if your business were to sustain a covered loss that resulted in lost income, a policy written without a waiting period would respond immediately whereas a policy written with a 72 hour waiting period would not respond for three days from the time the claim occurred. In essence, your deductible would be the amount of income lost during the waiting period.
This option is utilized by the insurance company to determine the amount of money you would collect in the event of a loss.
- Replacement Cost
- Actual Cash Value (Depreciated Amount)
- Legal Liability
- Selling Price (on Sold Merchandise)
Basic Form —Is a "Named Perils" coverage form that enumerates each of the perils that coverage is provided for. For example: fire, windstorm, hail, smoke, explosion, etc. This coverage form provides the least amount of protection for your property and it is generally the least costly of the available forms.
Broad Form —Is a "Named Perils" coverage form that enumerates each of the perils that coverage is provided for. This form generally provides coverage for all of the perils that are covered under the Basic Form plus glass breakage, falling objects, weight of snow, ice or sleet and specific types of water damage claims.
Special Form or All Risk Form —Covers all direct physical damage to property unless excluded. This form provides you with the broadest amount of coverage currently available.
The two biggest differences between the "Named Perils Form" and the "Special Form" or "All Risk
Form" are as follows:
- Theft coverage is included in the "Special Form" and "All Risk Form"
- The burden of proof to show where coverage exists is on the insured with the "Named
Perils Form." The burden of proof to show where coverage is excluded is on the insurance
carrier with the "Special Form" or "All Risk Form."
PLEASE NOTE THE "SPECIAL FORM"/ "ALL RISK FORM" CONTAINS NUMEROUS EXCLUSIONS such as flood, earthquake, political risk & confiscation, boiler and machinery explosions or defects, war, extreme temperature changes, insects and vermin just to name a few.
Where your Property is covered:
- United States only.
- United States and Canada only.
- United States its possessions and territories and Canada only.
- Worldwide excluding listed countries.
Important Terms and Conditions
Policy exclusions which you may wish to avoid:
- Theft from unattended vehicles.
- Damage to property stored in the open caused by rain, hail, sleet, or snow while at a location not under your control.
- Theft of equipment by the person to whom you rented the equipment.
- Loss resulting from riot and civil commotion.
Coverage terms and conditions that we recommend:
- Transit coverage.
- Unnamed Locations coverage.
- Insure generators mounted on motor vehicles as personal property rather than as part of the vehicle.
Our experience proves that all of these are important and not readily available from agents or brokers not accustomed to handling your unique insurance needs.
The preceding is a general summary of the insurance coverages that you should consider. It is interpretive only and is not intended to replace or supersede any of the terms and/or conditions of the policies comprising the insurance program. In case of specific interpretation of coverages, you need to refer to the actual policies. Please contact us for a copy of the policy.