What is a Commercial Insurance Policy Review?
A commercial insurance policy outlines the coverage or protection a business has against events that can be financially risky, such as accidents, data breaches, and legal action. Having a commercial insurance policy is required in most US states.
Once it’s drafted and signed, it’s essential to have this policy reviewed from time to time to ensure that it’s fair, transparent, and legally sound.
Read the rest of this article to learn more about commercial insurance policy reviews and how they work, as well as how a lawyer can help you stay legally compliant and protected.
What are the Types of Commercial Insurance?
Depending on your requirements, there are various types of commercial insurance available. These include the following:
- Property insurance. This will cover events such as theft or physical damage.
- Workers’ compensation. This policy covers your employees against injury.
- Errors and omissions. Commonly seen in the tech industry, this type of coverage protects the business owner from legal action as a result of any errors.
- Cyber liability insurance. If there is a data breach in your company, this insurance covers you against the financial losses from it, and can include other cyber-related events.
- Business interruption insurance. This type of insurance will cover financial losses if the business has to stop operations as a result of a risk which is covered by the insurer.
What are Key Terms in Commercial Insurance Policies?
A commercial insurance policy typically includes the following terms.
- Declaration page. This is essentially a summary of the policy, with information about coverage details.
- Policy coverage limits. Check what the limits of your coverage are so that you’re reassured of getting enough protection.
- Deductibles. These sometimes appear in commercial insurance policies, and they require you to pay an amount before the insurance company will pay you the rest of the amount.
- Exclusions. These are what the insurer won’t pay you for.
- Umbrella insurance. This is extra coverage that can extend the policy coverage.
- Conditions. There are specific conditions you will have to meet to ensure you will be covered.
How Should You Review Your Commercial Insurance Policy?
When reviewing your commercial insurance policy, which you should do annually or when your needs change, there are some tips to follow so that you’re thorough and identify any red flags.
Review the Declaration Page
Check that all details in the declaration page are accurate, down to the business name being spelled correctly.
Check How Much Coverage You Have
Scrutinize the information about what coverage the policy gives you. Is it enough for your current business requirements?
Read through all limits, deductibles, and exclusions. This will ensure that you’re getting coverage that meets your needs.
Conduct a Business Risk Assessment
When reviewing your policy, you should think about any new risks faced by your business since you gained the insurance policy or last reviewed it. This can include external factors that could harm your company or operations.
Get Cover for Cyber Activities
Data breaches and other cyber events have become more common, so you should check the policy’s terms regarding cyber insurance. This will protect your business reputation and prevent costly losses.
Check the Claims Process
It’s important to review the process of submitting a claim to the insurance company. This should be a reliable system to prevent delays that can cost you.
Align Coverage to Business Changes
Some changes to your business can trigger an insurance policy review. Check that any events or changes are matched to the insurance coverage outlined in the policy, such as the following:
- You’ve changed your business location.
- You’ve purchased new equipment for your office.
- You’ve hired new employees.
- You’ve changed your business structure, which could result in different coverage needs.
Consult with Your Insurance Provider
Once you’ve reviewed your commercial insurance policy, you should contact your insurer so you can chat to them about any changes you’d like to make regarding your coverage.
Do You Need a Lawyer for a Commercial Insurance Policy Review?
Although you can review your commercial insurance policy yourself, if you’re concerned about anything in your policy or you’re unsure of how to conduct a thorough review, you should consult with a lawyer for guidance. Here is how they can help you.
- They’ll spot any hidden exclusions or gaps that you might not consider.
- They’ll simplify any legal jargon or confusing terms so that you understand everything in the policy before accepting it.
- They’ll consider your business and the risks it faces so that they confirm the coverage is sufficient.
- They’ll check for any unfair or one-sided terms.
- They’ll ensure that all deductibles and limits are fair.
- They’ll negotiate with your insurer on your behalf to help you gain a favorable outcome.
Are you looking for a lawyer for a commercial insurance policy review?
If you need legal guidance for a commercial insurance policy review, you can hire a lawyer from ContractsCounsel, an online legal marketplace that connects clients with experienced lawyers who have been vetted on the platform.
They have the experience and legal expertise to help you thoroughly review your commercial insurance policy so that you protect your business and minimize your risks.
Here is how to get in touch with a lawyer for a review:
- On the ContractsCounsel marketplace, you should post your project for free.
- Specify details of what you need.
- Receive lawyer bids for your project. You can review the bids and lawyer profiles to learn more about their client ratings, years of experience, field of expertise, and previous similar projects they’ve completed on the platform.
- Choose a lawyer to work with and get your commercial insurance policy reviewed.
