Simplifying Insurance for Your Facility
hen looking for insurance for your facility there are several things you should know. You should choose an agency with experience insuring your type of facility, if possible. Almost all commercial facilities will need to be covered for general liability insurance, property insurance and workers' compensation insurance. Many also need excess liability insurance, commercial auto insurance and employment related practices liability insurance.
Q: How can I simplify our insurance policies?
A: You will need multiple lines of insurance and it will be easier to work with one agency. A single agency with expertise in your industry should be able to offer the coverage with a common anniversary date and combined monthly payment.
Look for a company that is focused on your industry and has a program for your market. They are more likely to have tailored policies that meet your specific needs. This way, you won't have to buy additional policies or have gaps in your coverage. For example, in programs for health and fitness facilities, professional liability may be included in the general liability coverage.
Q: What should I be sure is covered under our policy?
A: First, evaluate your needs with your agent up front. Then, for each of your policies, read the applications and compare them to your business plan or to prior coverage to be sure you're not missing anything. Review your coverage each year to make sure your needs and exposures haven't changed.
A general liability policy for a recreation facility may also require an accident policy. Look at the medical payments limits offered in the general liability, and talk to your agent about this coverage. Accident policies can reduce exposure, along with the overall premium. General liability should also include professional liability, as well as sexual abuse and molestation coverage.
On you commercial property insurance policy, remember to evaluate your business income or business interruption needs. This is an important coverage in addition to the building or tenants improvements and business personal property coverages.
Discuss with your agent whether additional liability limits are needed. An excess liability or umbrella policy goes beyond general liability to provide higher limits. These policies should be evaluated to determine if any of the underlying coverage is excluded or if any of the underlying coverage, such as workers' compensation, needs to be at higher limits to prevent a gap in coverage.
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