Number One Tip for Reading Your Insurance Policy!

Read the EXCLUSIONS first!

Now, I know what you are thinking. “I just want to know that I have the right limits!”

I want you to have the right limits too!

THAT WON’T HELP YOU THOUGH IF THE POLICY LANGUAGE SAYS THEY WON’T PAY!

Also, let’s be real. The likelihood that you will need those full limits, like the full replacement cost limit on your building, is pretty low. It’s still a good idea to insure your building correctly, but it’s unlikely the whole thing will burn down.

What is far more likely:

• Your employee steals $10,000 worth of stock or equipment (standard exclusion)
• Water backs up through the drains damaging equipment and shuts you down for a while (standard exclusion)
• Theft of monies (usually there is a limit of $2500 — $5000)
• Outside signs get damaged, including the ones on your building (usually a limit of $5000 or less)
• Lawsuits against you for alleged or actual violation of employment laws

Seriously, y’all. The policy is built upon that hundred page document that you never read because it’s really long and really confusing.

That’s a great risk management practice is have your agent walk your insurance partner walk through EVERY EXCLUSION in your policy, as well as the limits.

Be thorough. Insurance could be the life or death of a business.