Risk management involves a number of important considerations. The objective of risk management is to conserve the physical assets of the business using techniques and procedures that do not necessarily include purchasing more insurance. The first step is to identify all the potential exposures a business faces. Exposures could include being sued by a former…
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Are there disasters my property insurance won’t cover?
Even though "all risk" property insurance contracts extend to cover a variety of calamities, there are standard exclusions where in some cases, coverage is simply not available. For example, if you think in terms of natural disasters that may occur like floods and earthquakes, there are standard exclusions regarding these perils on most property policies.…
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Why are some general liability policies rated on area and others on payroll and receipts?
Different rating methods are used to more accurately reflect the exposure. For example, a restaurants exposure is more accurately defined by using receipts rather than area, because it better determines the volume of customers (exposure) that comes into the restaurant. However, an apartment building is rated by units or number of apartments, and an office…
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What does Commercial Property Insurance cover?
A Commercial Property Insurance policy covers a business for loss to its "real" property - buildings; personal property - contents, equipment, furniture, fixtures, and inventory and business incomes/extra expense coverage. The coverage can be written in a variety of ways, based upon actual cash value, or replacement cost, basic or broad form coverage, specific of blanket…
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How do I know what to carry for limits of coverage?
There is no single answer to this question; however, no business can afford to be unprepared for a lawsuit. Liability insurance protects your business assets when the business is sued for something the business did (or failed to do) that contributed to injury or property damage to someone else. Liability coverage extends not only to…
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