Commercial Insurance Covered Claims
Most commercial insurance consumers purchase an insurance policy and then when they have a claim or loss try and figure out if they have coverage for the damages. It tends to be more beneficial and less stressful if you do your homework beforehand. By making sure that you purchased the coverages and limits that you desire so that when you do have a claim you will have the confidence that you will have the appropriate coverage so that you do not suffer a loss.
Trying to squeeze coverage out of your insurance contract when a claim happens is almost always a very stressful event. That is usually when everybody runs for their attorney. Typically there are no winners in this type of scenario. Taking the time upfront to make sure that your insurance broker clearly understands what your concerns are and that you have the appropriate coverage and limits to address your risk tolerance is tantamount to you being a satisfied client when a claim arises.
It is the old proverbial saying about trying to make a square peg fit in a round hole. In this case it is trying to make your claim fit the policy forms and coverages that you have purchased. Doing your coverage and limits analysis before you ever purchase and pay the premiums for your policy is the prudent thing to do. That means that in doing your analysis upfront that you must be able to understand the coverages, exclusions, conditions, and limits that are within your insurance policy contract.
It is like the analogy of going to the salon to get a haircut. To go to the salon and asked for a haircut and then once they are done cutting your hair and you’re not satisfied it is usually too late and the damage it is done. Whereas when you going to the salon and you show a picture of what you want your haircut to look like and get detailed descriptions of what you expect the outcome to be you are more apt to be satisfied in the outcome of that process of getting a haircut. Because insurance and the insurance industry is very confusing to the general public and is typically dealing with intangible things, such as insurance contracts it is difficult to get a handle on the transaction. Tangible things such as buying a car going to the doctor or buying a house we usually ask more questions and lay out what our desires and outcomes should be.
Insurance is another ball game; there are rarely two different insurance companies who have the exact same insurance policies and coverages. The reason for that is they want to differentiate themselves in the marketplace. Therefore it is almost impossible to compare apples to apples for each insurance contract by different insurance companies. Doing your coverage analysis upfront is almost always much more beneficial than trying to do your coverage analysis after you have a claim or loss.
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