Does your business have the right insurance? Without it, you may face catastrophic losses with no means to recover from the damage done.

Here’s why every business needs proper insurance – and how to ensure you’re covered.


The Right Coverage: Type vs. Amount

When determining whether you have the right insurance for your business, consider both the type and the amount of insurance coverage.

The type of insurance addresses the kind of risks and exposures the policy covers. Not all types of insurance cover all types of risk. For instance, a standard property protection policy won’t cover errors and omissions and it may specifically exclude flood damage.

The amount (or limit) of insurance refers to how much the policy will pay for the losses it covers. Make sure the amount is sufficient to address the actual potential maximum loss. If it will cost $500,000 to rebuild a building if it’s destroyed, for example, a policy offering only $250,000 in coverage has an inadequate amount.


What Happens When You Don’t Have Adequate Coverage?

If you don’t have the right type and amount of coverage for your business:

  • You won’t have enough resources to rebuild after a loss. If replacing your business’s fixtures will cost $1 million, but your policy will only pay $750,000, you’ll be $250,000 short of getting back to full strength. Where will that money come from?
  • You may not have coverage at all. A policy that excludes flood damage, for instance, will leave you on your own if your business experiences a flood. The full cost of rebuilding will fall on you.
  • You may end up in a costly court battle. Insurers share the burden of coverage through complex systems of determining which carrier is responsible for which claims and in what order. Without adequate coverage, you may find yourself caught between two carriers, each of whom argues that the other is responsible for your losses.


How to Get the Right Coverage for Your Business

Insurance can be complex. Working with an experienced insurance agent or broker is a must to ensure you have the right types and amounts of coverage for your business.


Searching for an Insurance Expert? 

At Odell Studner, we specialize in helping businesses ensure they have what they need. If you’re searching for a great insurance broker who can support your company’s changing needs, contact us today.