Checking In On Your Phoenix Business Insurance Needs
Recently, I sat down with a potential new client to discuss their insurance options for their Phoenix business. Before I started looking at exactly what their Phoenix business actually did and what coverages were necessary to protect the business, the owner tells me that he figures a simple General Liability Insurance Policy will cover his entire operation, which was as far from the truth as you could possibly get. In fact, we wrote three additional insurance coverages that provided needed protection for his company, which included Professional Liability Coverage, Cyber Liability Coverage, and Directors & Officers Liability Coverage.
Initially, when we sit down with prospective clients, especially the ones who already have insurance, to discuss what our agency can do for them, I always ask them if they have recently reviewed their current policies to see exactly what their coverage is, and, more times than not, they have never reviewed their policies.
In this particular instance, this client not only was a General Contractor, but he also drew plans for his clients. After hearing that, we pointed out that his General Liability Policy had an exclusion for professional services. We also explained to him that if a claim were to be filed against his company, and if it was determined that the plans he had drawn were the main cause of the claim, there would no coverage under his general liability policy, and his firm would be responsible for any damages awarded and any legal costs incurred.
Until we pointed out this exclusion, he was under the impression that he was covered for drawing plans for his clients. Needless to say, we did a thorough review of all his insurance needs to make sure he was covered for what his company was actually doing. It is surprising that clients just assume that by acquiring a General Liability Insurance Policy, they will be covered for anything and everything they will be doing concerning their company’s actions. When we start the process of determining necessary insurance coverages for a client, our first step is to learn as much about the client as we can.
If you are a Phoenix contractor, we need to know exactly what type of contractor you are–a General Contractor, a sub-contractor; are you working on tract housing, condos, apartments, townhouses; do you self perform activities such as plumbing, electrical, concrete, drywall, framing, roofing, carpentry, HVAC, and do you draw plans for clients?
At PJO Insurance Brokerage, we have check-lists that we utilize with our clients to determine what their contracting activities include to formulate an insurance program so they can be covered without any surprises. If you are any kind of a Consultant, Web Designer, Project Manager, or one of the dozens of professionals that make their living advising clients, having just General Liability Insurance is not going to fully protect you. This is where having a Professional Liability Policy is a necessity in protecting your firm. Again, we will inquire as to every service that the client is offering to determine what the various insurance coverages should be to protect them.
As the many unique types of companies that are out there, that’s about how many different types of insurance coverages there are that may be available to protect your business. One of the ways to determine what coverages are required for a client is to ask the client as many questions as possible concerning their business activities, contractual obligations, and ongoing and future work, and then proceed to help them formulate an insurance program to fit those needs.
In addition, we follow up with our clients to determine if something has changed with their business model, so we can adjust their insurance program, if necessary, to adequately protect them. If it has been a while since you have reviewed your current insurance program, or if you are just launching your new company, we welcome the opportunity to work with your company on your insurance needs.
PJO Insurance Brokerage
By Patrick O’ Neill
4103 E. Prickly Pear Trail
Phoenix, Arizona 85050