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Every once in a while I get this question from business owners. It's a good question, so I think it deserves a good answer. Let’s review an insurance scenario to put things into perspective.
Your business is a startup and you are looking for insurance quotes or maybe you have been in business for several years, but just felt like you didn't really need business insurance. Or someone is requiring you to have General Liability Insurance. Bottom line, you need insurance. Let’s assume you are some type of manufacturer. Even if you are not technically "manufacturing" the product, but you are putting your label/brand on the product, in the eyes of an insurance company, this makes you a manufacturer. You could also be a distributor of a foreign product. If someone is injured by your product or service, who is going to be held liable? Most likely, your business, so the insurance company is going to class you the same as a manufacturer. The reason for this is they may have to respond to a product liability claim. Let’s say you don't have liability insurance. How much is it going to cost you to get a lawyer to come to your defense? Court costs? Opportunity costs (taking time off from work)? Even if you have some kind of product liability waiver, your lawyer still has to defend that waiver in court. It could be costly and time consuming. What if the court rules in favor of the plaintiff and is awarded a settlement? I think it's safe to say the costs are going to add up fast if you don't have insurance. After considering the above, what is your annual General Liability Insurance premium? What is the coverage amount? Perhaps you don't think there's that much risk in your product and don't think you'll ever be sued. Please consider we live in a very litigious society now. A fast food restaurant has been sued for serving hot coffee too hot not once, but twice. Also consider many years ago businesses did not get sued unless there was a loss. Now businesses are sued regardless of fault. As a business owner, you definitely have to look at your costs, but you also have to look at protecting your business. Strive Insurance Group represents many "A Rated" insurance carriers and is ready to help you get the protection you need. If you have questions about your business insurance policy or need a General Liability Insurance quote, please let us know. Jason Matison Insurance Agent Austin, Texas
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 Example: General Liability $1M Each Occurrence/ $2M Aggregate General Liability Insurance can be confusing, especially if you're not sure the meaning of the limits, General Aggregate and Each Occurrence (Per Occurrence). Here's the difference and how it impacts your Business Insurance. So here's the deal, Each Occurrence is the maximum the insurance company will payout per claim. Using the numbers in this example, if you have a General Liability claim that's $1,500,000, you are going to have to come up with the $500,000 since Each Occurrence is $1,000,000. Some companies see the $2,000,000 amount and they assume the $2,000,000 will cover everything. This can be confusing if you're not familiar with these numbers. Where does the $2,000,000 come into play then? Well, that is the aggregate amount. Meaning, the total amount the insurance company will payout for multiple claims during the policy term. If you have questions about General Liability Insurance limits, Umbrella Insurance or any other Business Insurance needs, please feel free to contact me. Jason Matison [email protected]  When it comes to Business Insurance, the Declarations Page or Common Policy Declarations of your insurance policy will reflect coverage and deductible information. It's usually located near the front of your policy. Oftentimes, people will tell me it's the only information in their insurance policy that makes sense.
Take the time to review your Declarations Page at least once a year. Renewal time is usually the best time to do this. Your business changes and so should your policy limits. The picture to left is an example of what a Declarations Page from a Hartford Spectrum Policy looks like. Yours should be somewhat similar. If you cannot locate your Declarations Page, also called a Dec Page, talk to your agent. They should be able to locate it very easily. If you have any questions, or need assistance with your Business Insurance policy, please feel free to contact me. |
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