The Most Expensive Book You’ll Ever Read

What does an insurance policy in the value of $1,000, $10,000, $100,000 and $1,000,000 all have in common?  They are all insurance policies that are likely be unread or in some cases misunderstood.   More common than you would think is that a purchased program for so much money would be left on a shelf and never read.  That is a very expensive book if you ask me!

So why do so many policies go unread?  The answer is simply, because insurance policies are boring and difficult to understand.  That is why it is critical to have an insurance professional you trust and has a high level of knowledge on your side when making such an important business purchase.  Before I move on however, I should note that in some cases, even insurance professionals might not read those policies.  Shocked?  Don’t be.  Unfortunately, it is more common than you would think.

Protect yourself and your business against such potential disasters as not being covered for an exposure that is excluded on your policy that was not picked up.  Or, agreeing to insurance conditions that are completely inappropriate for your company operations.  Here are a few tips to make sure you are managing this risk and that you have the right insurance professional working with you and your company.

1. Review the exclusions section of your policy and ask your agent or broker to review them with you.
2. Read through the insuring agreements of your policy to make sure it meets your needs.
3. Ask about the endorsements attached at the end of your program for clarity and understanding.
4. Verify limits of insurance and the values indicated on the policy for liability and properties.
5. Request your insurance policy to be delivered within 60 days. Typically a policy may take much longer to receive unless specifically requested sooner.
6. Meet your underwriter. They will have a much deeper understanding of your business and overall operation if they can hear your story and learn about your business needs.

By being aware of your insurance policy and its conditions and exclusions, you may be better prepared than most if confronted with a loss. Make it a priority to understand the policy language and challenge your agent or broker to do the same. If you think you know more than they do, it may be time to look for another one.