What You Don't Know About Your Insurance Could Cost You
After a fire damaged part of a business, property insurance paid for repairs to the affected area. However, regulations required the entire building, including undamaged sections, to be updated to current codes, such as new fire safety and accessibility features. Without ordinance or law coverage, these extra costs weren’t covered, forcing the owner to pay out of pocket for expensive code upgrades and demolition, far exceeding the original repair costs.
Relying on insufficient coverage leaves your business vulnerable to significant financial setbacks. Proactive advisement ensures you understand the risks facing your company and provides you with options to safeguard your assets, support business continuity, and offer peace of mind. Here are some of the most commonly overlooked areas where expert advice can make all the difference.
- 1. Cyber Liability Exposures
As cyber threats evolve and become more sophisticated, make sure your coverage addresses data breaches and cyberattacks as traditional policies rarely do.
2. Environmental/Pollution
All businesses have some form of environmental or pollution exposure and need a strategy to minimize potential impacts. Claims resulting from a pollution incident are typically excluded from both property and general liability policies.
3. Business Interruption Shortfalls
Secure business interruption insurance to protect your income during downtime after a covered loss. Without it, even a brief closure can threaten your long-term success.
4. Insufficient Liability Limits
Today’s legal environment demands higher liability limits. Relying solely on a standard CGL policy can leave your organization underinsured and vulnerable to large claims.
5. Employment Practices Liability (EPL) Insurance
With changing workplace laws and remote work, employment-related claims are on the rise. EPL coverage fills gaps left by standard policies.
6. Professional Liability (Errors & Omissions)
If your business provides advice or specialized services, E&O coverage is essential—general liability won’t protect you from professional errors.
7. Workers’ Compensation Limitations
Policies only cover employees in states specifically listed in the policy. If employees work in other states or countries, those locations must be shown. Notify your advisor when expanding operations or working outside your home state to keep your coverage current.
8. Ordinance or Law Coverage
Standard property insurance may not cover the costs of rebuilding to meet updated codes after a loss. Ordinance or law coverage closes this gap and protects your investment.
9. Product Recall
Manufacturers need product recall insurance to cover the substantial costs associated with removing defective products, notifying customers, and managing public relations, which are not typically covered by general liability policies.
10. Natural Disaster Exclusions
Ensure your coverage includes protection for floods, earthquakes, and hurricanes. Standard property policies often exclude these, leaving your business exposed when disaster strikes.
11. Coverage for Multiple Locations and Borrowed Equipment
As your business grows, ensure your policies protect all locations and any borrowed or leased equipment to prevent costly gaps.
By addressing these areas, you will be empowered to operate confidently, drive growth, and achieve measurable results. Familiarize yourself with policy exclusions and limitations, ask for clarification if you have questions.
During a claim is the worst time to discover a shortfall in your coverage. Identify and address these vulnerabilities before they become a problem. True advisement means partnering with your internal risk management program to evaluate vulnerabilities to design insurance programs tailored to your business's unique needs. Your business deserves nothing less.
Let us be the advisor who helps you strengthen and grow your business. Contact us today to schedule a comprehensive review, and experience the difference of having a true partner invested in your success.
How Secure is your Safety Net?
Discover Hidden Risks Before They Find You
Ready For Advisement That Goes Beyond Selling a Policy? Let's Get Started!