When was the last time you thought critically about your business’s insurance coverage? If it has been a while, there is no time like the present to make sure you are protected and taking full advantage of your current coverage. Here are some tips from the insurance claim lawyers at Saavedra | Goodwin:
Making Sure Your Broward County Business is Adequately Insured
Tip #1: Conduct an Internal Insurance Audit.
Whether you are your accounting department or you have someone else manage your company’s accounts payable, it is worth making sure that your premium payments are up-to-date. Failure to pay premiums is one of the limited number of reasons why insurers can legitimately deny insurance claims, and the last thing you want is to be facing bankruptcy after a major casualty because a check got lost in the mail.
As a separate issue, do you have any insurance claims that you need to file? If you have been putting off dealing with your insurance company, or if you have not considered filing a claim for a covered loss, you will want to make sure you file your claim before the filing window expires.
Tip #2: Reconsider Your Business’s Insurance Needs.
Companies’ insurance needs change over time; and, if your business has expanded since you last spoke with your broker, there is a good chance that it has outgrown its current coverage. Determining appropriate policy limits requires a careful assessment of your company’s risks, and it is important not to overlook the fact that it may be time to consider additional types of coverage. Common types of small business coverage include:
- Automobile insurance
- Business interruption insurance
- Crime insurance
- Director and officer insurance
- General liability insurance
- Home-based business insurance
- Professional liability insurance (also known as “errors and omissions” insurance)
- Product liability insurance
- Property insurance
Small business owners should be sure to give careful consideration to their personal insurance needs as well.
Tip #3: Verify Third-Party Indemnification and Insurance Coverage
If you buy from or sell to other businesses, it is critical to make sure that your company is protected against the risk of third-party liability. For example, suppose your company sells a product that integrates third-party components and one of those components fails, causing an injury or business loss. In this scenario, your company is likely to get sued even though liability should ultimately rest with your supplier.
To protect against these types of risks, your contracts with other businesses should include appropriate provisions for indemnification and coverage as an “additional insured.” If this indemnification and insurance language is inadequate (or missing), it may be time to renegotiate or, if necessary, look into enhancing your company’s own insurance coverage. If your business is supposed to be covered as an additional insured, it can also be a good idea to periodically request insurance certificates to confirm coverage.
Questions about Business Insurance? Contact Us Today
If you have questions about your small business’s insurance coverage, or if you need help with a business insurance claim, we encourage you to get in touch. To speak with an attorney about your needs, please call (954) 928-9568 or inquire online today.