Important Things to Consider

With all insurance policies it is important to ask some basic questions. You should also review the coverage every year and if/when there are changes in your property or operations.


  • What are the policy limits?
  • What is the per occurrence limit?
  • Is there a maximum amount they will pay in one year or an aggregate limit?

Make sure the limits are high enough!

Defense Expenses

  • Are defense expenses over and above the policy limit or part of the limit?

This can be very important as defense expenses can quickly eat up a policy limit and leave the organization with no coverage.

Higher limits will be required if defense costs are included.


  • How much is the deductible if there is one?
  • There may be different deductibles for different coverage.
  • Discuss deductible options with your broker or agent; the higher deductible the lower your premiums.

Choose a deductible your organization can afford.

Who is Covered

  • Who is covered?
  • Is the organization covered and the Board of Directors?
  • What about employees and volunteers?

Determine if you need to extend the policy to cover more people.

Exclusions and Conditions

  • What is not covered?
  • What are the policy conditions or warranties attached to your policy? For example: you are required to notify your insurer if there has been a change in occupancy of your property or the duty to prevent further damage in the event of a loss.

It is very important to fully disclose all operations.

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