When in the course of building, expanding, and simply conducting business through the years, changes occur in staffing, locations, even terms of ownership as partners join, percentages of proceeds shift, and other variables ebb and flow.
That’s completely natural and justified. But what happens when an insurance claim enters the picture? Are the lines of demarcation as clear to an outside agent as they might be to those inside the enterprise?
Every insurance policy states “Who is insured.” The importance of knowing who that pertains to specifically swiftly moves into high relief, however, when terms of that policy need to be carefully examined on the way to determining payment of damages.
Subtle differences may exist, so be sure to understand the specifics in your unique structure. A good organizational chart, kept up to date and checked for complete accuracy, must be there for a third-party agent to use. If that chart is out of date or in any way inaccurate, it can be a significant challenge to say it should not be used.
When your coverage comes into play for any reason, make sure all of your documentation paints the most current and accurate picture of how your business is structured, including ownership percentages, how those owners are invested and compensated, and any other pertinent terms. Also, make sure all affected parties inside the organization have reviewed and agree to what those documents show.
It’s critical to know who’s who when it comes to how a business is owned and operated. Contact the professionals at The Reschini Group to learn more.
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.