Today's post provides some insight into how to make sure you can effectively communicate your insurance needs to your broker when purchasing insurance.
Key Times to Understand Your Insurance Policy
The two most important times to be aware of what your insurance policy can include is when you are purchasing the policies, and when you need to make a claim under the policy. In both cases, you will probably be communicating with an insurance broker. Today's post provides some insight into how to make sure you can effectively communicate your insurance needs to your broker when purchasing insurance.
Working with Your Broker
A broker's job is to help guide you to find the appropriate insurance coverage for your business needs, but also to warn you of what simply cannot be covered under insurance. However, they can only do their job properly if you have an idea of what your needs and expectations are.
Preparing for Your Meeting
Accordingly, before meeting with a broker, you should take some time to determine the scope of your operations, your anticipated revenue for the period of time you're insuring (e.g., the first year, first five years, etc.), your supply chain and dependencies, as well as the values ,appraisal for any required construction, business interruption insured amounts, indemnity periods of business interruption and best suitable form for this exposure , mechanical breakdown, cargo exposures are some examples of cover to be included in your risk assessment.
Why COPE Information Matters
The information about COPE will be needed to properly underwrite your policy and not to miss any information which can reduce cover or deny coverage as to misinformation. For example, a fire would require valuations for construction, fireproofing, and possible liability to neighbouring properties. Figuring out these risks – with help from your broker – makes it much easier to know what kind of insurance policy you need.
Going through COPE details with your broker will highlight key issues that may arise on the property. For example, what do local bylaws have to say about reconstruction, you will need insurance limits to cover the cost of debris removal in addition to rebuilding a property, do you require business interruption insurance and how much do you expect to need for each of these coverages.
Protecting Your Business
A broker should be able to provide you with estimates and assistance in valuing these claims. This allows you to come to an informed decision about what types of, and how much, insurance you need. Taking these steps provides you with comfort and the knowledge that your insurance properly covers any potential incidents or accidents.
If you don't go through these issues with your broker, you put your business at risk. Foreseeable areas may not be insured, or your policy limits may not be enough to cover the cost of a rebuild, or income loss while you work to rebuild.
Reevaluating Your Broker
If a broker has not gone over these details with you, consider asking why that might be, and if that uncertainty is a risk, you are willing to accept. If you and your broker are not seeing eye to eye on these types of issues, it may be time to reconsider which broker you use.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
