If your business insurance policy was a restaurant menu, what we'll talk about today would likely be considered the "side dishes". Just like the vegetables or rice help to compliment the main attraction of either steak or fish, there’s whole host of smaller coverages which are often included in commercial insurance policies which accompany the property and liability, or the “meat" of your coverage. And even though a lot of those who work in the insurance industry consider them to be “frills”, these so-called frills can become awfully important if your business suffers a loss
Ottawa - August 8, 2013 - If your business insurance policy was a restaurant menu, what we'll talk about today would likely be considered the "side dishes". Just like the vegetables or rice help to compliment the main attraction of either steak or fish, there’s whole host of smaller coverages which are often included in commercial insurance policies which accompany the property and liability, or the “meat" of your coverage. And even though a lot of those who work in the insurance industry consider them to be “frills”, these so-called frills can become awfully important if your business suffers a loss. So let's take a quick look at five of the most common extras which are often included with typical commercial insurance policies;
• Outdoor Signs: This coverage is often limited to $10,000 to $50,000 but it extends property damage coverage to your outdoor business signage. Depending on the type of sign you have, replacement or repair can be expensive. I spoke to one business owner who had a customer drive into his sign on his parking lot and the estimate to repair it was over $40,000. It’s a good idea to check your policy to see if you have an appropriate limit.
• Fine Arts: You may not think that many businesses have a lot of “fine arts” on the premises but you might be surprised. Paintings hung on office walls along with small sculptures and even signed sports posters (one contractor I met has $30,000 worth of posters in his office) are insured up to the specified limit in this category.
• Valuable Papers: Suppose your office burns and your office records and files are damaged or destroyed. How much would it cost you to re-create those documents? That’s where this coverage comes in. It helps to pay the extra expense involved in compiling and re-creating those records. Often there is a limit of $10,000 to $100,000 placed on this coverage
• Debris Removal: The fire you’ve always dreaded actually happened but the good news is that your business property was properly insured and will be replaced, but who’s going to pay to clean up all of the debris that the fire created? That’s what Debris Removal coverage is for. It basically does what it says - pays to remove debris. Sometimes there is a limit of only $25,000 to $50,000 extended for this coverage and that could be spent quickly so it’s important to discuss your exposure with your broker.
• Fire Department Service Charges: After fire crews respond to a blaze, typically there is a fee charged back to the business to help defray the cost of their service. This coverage helps to cover that expense and often ranges from $10,000 to $50,000.
Of course, all of these “frills” have certain exclusions and restrictions placed on them and you’ll have to check your policy to see if they’re included with your coverage, but typically if you have suffered an “insured loss” they’ll kick in and potentially save you thousands of dollars in costs that you hadn’t anticipated. If you have any questions
about the “frills” included in your policy, please feel free to contact me. I’d be happy to discuss your current policy and your business needs.
Lorne Wiebe is a well known former Cornwall broadcaster. Even though he now calls Ottawa his home, he has a special affinity for Cornwall and SD and G. He now works at Rhodes & Williams Insurance Ltd. and partners with the local business community to help them deal with their day to day risks. If you have questions or wish to contact Lorne, you can email him at Lornew@rhodeswilliams.com
Presented here is a general article about insurance. The discussion is general in nature, and does not constitute insurance advice. This is not intended to be a description of coverage, and does not include details of the coverage nor the terms, conditions, qualifications, limitations and exclusions applicable. Policies should be reviewed in their entirety and related to your specific operations. Many insurers permit changes (Changes to insurance policies are usually called 'endorsements' or 'riders') in their limitations or exclusions to match your specific requirements. As insurance advice must be tailored to the specific circumstances of each situation, nothing provided herein should be used as a substitute for the advice of a competent insurance broker. IN NO EVENT WILL RHODES & WILLIAMS LIMITED BE LIABLE FOR ANY DAMAGES WHATSOEVER, INCLUDING SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES, ARISING OUT OF OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THE INFORMATION PRESENTED IN THIS DOCUMENT.
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