Whether you’re a small business owner or a private individual, protecting your assets is crucial. That is what makes insurance coverage valuable. However, simply purchasing a policy may not be enough. It’s important to fully understand the coverage you’re getting.
Understanding your insurance policy
An insurance analysis is a comprehensive review of your current coverage. It offers insight into whether your coverage helps you manage risks effectively and with minimal financial strain. If you are still on the fence about a policy, an insurance analysis can help determine which one to purchase.
Key steps when conducting an insurance analysis
A comprehensive insurance analysis can reveal whether you are underinsured or sufficiently protected. Below are three key steps when analyzing your insurance policy:
- Initial assessment: The first step is to conduct a preliminary review. This step can include identifying your insurance needs and briefly reviewing the declaration page, insuring agreement, exclusions and conditions.
- Detailed analysis: After the initial assessment, it’s crucial to dive deeper into the specifics and wording of your insurance contract. Here, you carefully review the limits, extent of the coverage, and potential liabilities.
- Policy comparisons: It’s good to compare your current policy with other available policies. This can help confirm whether or not you have the best coverage for your needs.
Why you should review your insurance policy
Let’s say you have a business. After heavy rain, your headquarters suffered extensive damage from flash floods. Conducting an insurance analysis prior to the disaster can ensure that your policy includes coverage for water damage, debris removal or other issues.
Remember, your needs are likely to change over time. A policy you bought two years ago might have met all your needs then, but it might no longer be sufficient today. Conducting an insurance analysis can not only make sure that your business has the coverage it needs but also potentially help you avoid disputes with your carrier. This, in turn, may help you avoid litigation, which may happen if the two sides cannot resolve the coverage issue.
Get professional help for your insurance analysis
It is generally best to seek professional assistance if there is concern about coverage, either when choosing a policy or having a claim rejected. An experienced professional, such as an insurance attorney, may offer guidance and insight to ensure you have sufficient coverage for your needs or help file a bad faith insurance claim if insurers deny your claim.
