The short-cut. The close-shave. The cut-corner. Those tiny “cheats” and little white lies people think can save a few bucks – but that can cost dearly in the long-run sometimes.
Business insurance may present just such a temptation. How easy would it appear to short-change the true cost of your business and all of its components, if it meant a lower premium to protect them? But just as something that sounds too good to be true, usually is – taking that tempting path will only lead to a tougher financial patch when a claim is filed.
When securing coverage for a business, make sure you take everything into consideration and assign the proper value to it. It’s more than physical property. It also includes your equipment, buildings, contracts, business recovery and lost income, the cost to rebuild, and more.
Business owners may check the current market value of their property when arranging for insurance coverage, forgetting that the valuations used in claim adjustment aren’t dependent on “market value.” You need to always remember that you’re insuring for the actual cash value or the replacement cost value of your property, depending on the coverage selected. Additionally, blanket coverage can help in protecting all elements of a business’ property, as long as the values used are adequate at the time of a loss.
By knowingly undervaluing property to achieve savings on premiums, the only person you’re fooling is yourself. By not anticipating the full brunt of a potential claim when the policy is written, the full cost of that claim cannot be covered should something happen and the policy is enforced.
Contact the professionals at The Reschini Group for guidance on business insurance that won’t leave you short-changed when you need it most.
Copyright 2020 The Reschini Group
The Reschini Group provides these updates for information only, and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.