Business Insurance Issues
by Julia Forneris, Demand Media
Business insurance serves to protect the business, business owner
and in some cases employees. The protection may come in the form of
financial aid to repair a business following a disaster or to supplement
income lost during the period of restoration. Insurance such as
workers' compensation protects the company from lawsuits and provides
financial compensation to an employee injured on the job. Concerns or
disagreements can arise between and insured and the insurance company.
Insufficient Coverage
While standard policies may adequately cover many businesses,
certain industries benefit from additional or specialty business
insurance coverage. Business owners should consult with an insurance
broker to ensure they have sufficient coverage in their policies. The
Insurance Information Institute cites a case in which a dry cleaner did
not have enough coverage in its standard business owner’s policy to
handle a lawsuit seeking $54 million. Had the dry cleaner lost the
lawsuit, it could quickly have gone bankrupt. The institute warns that
"no business can afford to be unprepared for a lawsuit." Preventing such
a scenario might require purchasing additional policies or adding on to
a current one.
Expense
If a business has employees, the employer by law must purchase
certain types of insurance, such as workers’ compensation. Starting and
running a business can be an expensive venture, and purchasing insurance
can add to the costs. Business owners can take some steps to ensure
they get the most for their money and save where they can. Aside from
helping to determine the necessary coverage, insurance brokers also aid
in shopping around to find the best price. Before working with a broker,
do your own shopping around; the institute recommends you find the
names of companies or brokers who specialize in your type of business.
You can also save on your policy by electing to pay a higher deductible
should you file a claim, which will lower what you pay in premiums.
Claims
Business owners have insurance to protect their assets, and filing a
claim is sometimes necessary to restore the company after a loss.
Claims can also bring about some points of contention. For example, your
claim may be denied, or you may feel as though you did not receive
enough compensation for your loss. Remember that the job of the
insurance company is to compensate you according to your policy. To
minimize disagreements over claims, be prepared with your own research
and records. The institute suggests that business owners record business
activity and the extra expenses of keeping your business operating in a
temporary location during any period of disruption.
If you cannot resolve your issue with the adjuster, you can speak with
the manager of the customer service department. If these measures fail,
you can talk to the state department of insurance or as a las
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