When you buy commercial risk insurance, you pay premiums to the insurance carrier, which in turn agrees to pay a claim in the event you should suffer a covered loss. By pooling premiums from many policyholders at once, ensurers are able to pay for the claims of the few who do run into problems, while providing protection to everyone else in the pool in case they need it.
Coverage provided on business insurance policies differ from insurance carrier to insurance carrier. So, it's always wise to seek the broadest coverage you can afford. However, because some losses are impossible to value or are too costly, too probable. Too susceptible to manipulation, insurance companies don't cover them at all. These are known as “uninsurable risks.”. Example, most professional liability policies won't cover you if a client sues you for not paying a bill or for stealing a customer or employe. And, of course, any allegation related to a criminal act or intentional wrongdoing on your part is generally uninsurable. For example, if you intentionally damage your own property or injure someone, your property insurance coverage won't apply.
Consequential losses are also generally uninsurable. For example, if you're sued for a mistake you made while providing services to a client, your policy may pay the claim for the error. However, if as a consequence of your mistake, the client stops doing business with you and you go out of business, those losses aren't covered.
Carriers may also choose not to ensure risks that are considered inevitable, such as providing property insurance to a business when a wildfire is burning just miles away. They also don't cover gradual damage to property related to maintenance or wear and tear, such as a old, leaky roof.
For a business risk to be insurable, it typically must meet a few criteria:
–. The risk is potentially costly enough that a business is willing to pay a premium to protect against it.
–. The risk can't be so catastrophic that the ensurer would never be able to pay for the loss (i.e. act of war).
–. The risk is well-defined and has a clear, measurable value that can't be influenced by the policyholder.
–. The risk is random, not within the policyholder's control. The policyholder can't cause or influence the loss.
Whether you choose comprehensive or collision insurance, neither of them will pay more than the value of the car or repair it more than what is necessary to restore it to the condition prior to the accident.It is common knowledge that it is wise to insure every asset you own. Car insurance comes into question when an accident occurs―in other words, when your car gets damaged. Like all other insurance policies, in this case too, you have to pay a certain amount as premium, and if and when your car is involved in an accident that damages your vehicle, the...
Jim Cochran is the Owner of BusinessInsuranceNow.com, an online provider of business liability insurance quotes. His industry knowledge and experience allow him to determine the specific business liability risks and recommend the proper business insurance to adequately cover the risks.