Many business owners purchase insurance and hope that they never have to use it. They walk away from the transaction not fully understanding their coverage – or their coverage limits. In order to keep costs reasonable, your insurance company will set insurance limits of liability. Liability insurance covers the costs of damages you’re responsible for causing. It’s in your best interest to understand the basics about the liability limits so you know where your business stands.
Insurance rates are determined by assessing risk or the likelihood of a claim being filed, as well as the maximum amount that may be paid if such a claim were to be filed. In essence, if it’s likely that the insurer will pay out a significant settlement in the future, the premiums will be higher.
If a claim is so extensive that it maxes out your policy, your business can be held responsible for the difference. For example, if you are responsible for $2 million in damages but only carry $1 million in insurance, you may have to pay the remaining $1 million out of pocket.
Generally, carrying more coverage with higher liability limits helps to protect your business. However, you will want to ensure that the price of coverage still fits within your budget. If you operate in high-risk environments or industries, you are usually better suited to higher minimum liability insurance limits.
For the right commercial property insurance policy, contact our expert team at Abatelli Group, Inc. today. We serve Whitestone, Flushing, Bayside, Little Neck, and surrounding cities of New York with reliable coverage!
After a long period of COVID-19 disruption in our lives, as well as looting from recent protests, business owners are just about to get back on their feet. Recovering from a pandemic as well as civil unrest may not be easy for every business owner, but there are a few things that you can do to help make the transition smooth.
Take a look at your finances. If you haven’t already, take a look at your finances and work out how badly your business was hit from the coronavirus and riots. You may have had financial support from the government which tied you over for a couple of months, but now you need to work out how fast your business needs to recover. Whether you lost income or had to lose employees, ensure you understand your new financial picture.
Adapt your operations. Recognize that what worked pre-coronavirus may not work in our new normal. Assess whether you need to change operations to make your business more successful. For example, do you offer delivery so customers can order online from the safety of their homes? If you used to rely on foot traffic, now may be the time to rethink practices to ensure your products are reading people.
File a claim if needed. If recent protests meant that looters raided your store or vandalized your property, you may be able to claim on your insurance. Civil unrest is typically included in commercial insurance coverage, which means you can have help recovering from looters.
Smart business owners know that they need to have an active, hands-on approach to repair their business after the coronavirus and riots. To help, your insurance can repair and replace belongings that were damaged because of looking. For the right commercial property insurance policy, contact our expert team at Abatelli Group, Inc. today. We serve Whitestone, Flushing, Bayside, Little Neck, and surrounding cities of New York with reliable coverage!