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!
- 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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