Choosing Coverages, Deductibles and a Limit

Coverages

Make sure that you have the coverage's you need, here are some types of Commercial coverage’s;

• Property
• Business interruption
• Boiler & Machinery
• Crime & Fidelity
• Importers & Exporters
• Ocean & Inland Transit
• Commercial Automobile & Fleets
• Commercial General Liability Products Liability
• Surety & Bonding
• Credit Insurance
• Commercial Umbrella Liability
• Professional Liability including Malpractice, Directors & Officers, Errors & Omissions
• Non-profit associations and organizations Directors & Officers

Deductibles

Deductibles ensure that insurance is doing what it is intended to do – pay for the substantial losses, not the minor ones. Deductibles keep premiums low. Essentially, the deductible is the amount for which you are self-insured. The higher the deductible, the lower the insurance premium.

To determine the amount for which you are prepared to self-insure, consider the following:

• Look at the premium levels for various deductible options. The money saved on the premium by raising the deductible may or may not be worth it.
  
• Look at your loss history. If you have a lot of claims, you could find yourself paying the deductible many times over. Paying a higher premium to get a lower deductible might make sense.
  
• Consider talking with a risk management consultant to determine optimal deductible levels.

Policy Limits

You want to have adequate coverage but without being over-insured and paying too much. To make an accurate calculation, work with your insurance broker and consider the following:

• The value of your property: If you lost everything in a fire, what would be the cost of that loss? Or if you will have to replace it, what would be the replacement cost.
  
• Your potential liability exposure: Property is only one aspect of what insurance covers. Insurance also protects you if you get sued. It pays for legal costs and damages if you’re found to have been liable for a person’s injuries. Some operations are higher risk than others. A nightclub, for example, is more vulnerable to lawsuits than a flower shop and will therefore need higher liability limits.
  
• Past losses: Use your claims history as a guide when comparing quotes for different policy limit options.
  
  

Delsan Group is there to service your needs in Commercial & Personal lines insurance.

For more information, contact the Delsan Group.