When was the last time you reviewed your insurance coverage? Note that I didn’t mention price, but coverage. Progressive’s “Flo” would have you believe that insurance comes in a white box, and that only the price differentiates one company’s offering from another, but it just isn’t so. An insurance policy is a contract, and the negotiable provisions of that contract can make the difference between a claim that gets paid and a claim that doesn’t.
Here are just a few things to jog your memory. If any of these have happened to you since you’ve reviewed your insurance coverage, it’s probably time to do so.
No business owner likes to hear the A-word — “audit” — but if you’re prepared for it, it’s nothing to worry about.
An auditable insurance policy is one that is rated based on an exposure that may change over time. As your business changes over the course of the year, you may have more or less exposure than you anticipated. The most common auditable exposure is payroll, which is used as a rating basis for many general liability and all workers’ compensation policies.
Workers’ comp is a critical coverage for employers, but the coverage and the reasons it’s necessary are not well understood by many small business owners. (This discussion applies only to Workers’ Compensation in Missouri; laws vary by state.)