Insurance Tidbits:

 Does Your Insurance Properly Protect Your Business?

Although important to your business, reviewing your insurance coverage may take a backseat to more pressing issues.  If you have never had a loss, the cheapest insurance may seem to be the best.  Unfortunately with this approach, you won’t know if you have proper coverage until after a loss occurs.  

Daily occurrences like asking an employee to take their car to run an errand for the business can be a significant exposure.  How do you know if you are covered?  Hopefully, your agent/broker reviewed your policy with you.  If not, the following is a brief review of some major components you should find in your policy.  Remember, coverage provided is subject to the policy limits.     

Building- Although designed for businesses that own their own building, tenants may also have the need for this coverage.  Depending on the policy, this is where you would cover the improvements that you made inside your leased space.  This may include permanent upgrades like special flooring, built in shelves, or large stoves and ovens.  Some policies cover these improvements under a separate coverage.   

Contents/Business Personal Property- For a retail shop, this provides coverage for your inventory from loss.  In an office, coverage would be provided for equipment, including computers, business machines and other equipment unique to your business.  Failing to insure your contents for their proper value could limit the amount that you would receive after a loss.

Business Income/Extra Expense- If your business should temporarily close after a covered loss to make repairs or require moving to a new location, the extra expenses incurred would be covered.  Lost income to the owner during this period would also be covered. 

Liability- This pays for bodily injury to people from an unintentional act who may get hurt on your premises or suffer an injury using your product.  Coverage typically provides your legal defense costs as well as settlements paid on your behalf.

Given the myriad of exposures your business faces…If your business is important to you and your family, take the extra few minutes to make informed choices about the coverage needed to protect it.

Jon Gardner, CPCU is an Insurance Agent with Farmers Insurance who offers complimentary insurance evaluations.  His office is located at 27907 Smyth Dr., Suite #101 in Valencia.  He can be reached at (661) 775-9244