Are Your Current Phoenix, AZ Insurance Policies Protecting You?
In any business, internal audits and reviews are a large part of the business plan. From the products and/or services you sell to vendors and subs you may use, every facet of your business is always under some kind of review. With keeping that premise in mind, when is the last time you thoroughly reviewed all of your business insurance policies? If you can’t remember the last time, then I would start a review as soon as possible.
Start with your General Liability policy. Look at your policy limits, then look at what your company is doing in sales especially if you are selling a product, and you believe there is even a remote chance a major claim could cause your company to shut its doors. This is one reason you should consider increasing your limits by looking to acquiring an excess liability or umbrella policy. Also, when you check your current limits, make sure they include completed operations and/or products liability coverage. Recently, we were reviewing a GL policy for a potential client who built and sold a product that was in a high risk category, and we discovered that products coverage was excluded on their policy, creating a huge gap in their coverage.
Another area that clients tend to overlook is their property insurance. During the past year, has your company added or deleted any kind of property including inventory, machinery, tools, parts, computers, office equipment, and have you checked your policy to make sure you have theft coverage? Recently, a motorcycle repair shop who was not our client came to us after finding out after a break-in that theft coverage was excluded from their policy. That is not the time you want to find out that you have no coverage.
Another important area of coverage is for companies providing professional services such as consulting, medical care, accounting, or a similar business where you are providing a professional service, and the only coverage you have is General Liability Insurance, then, in all likelihood, you have no coverage for your professional services. If you are one of these companies whose primary business is professional services, than having a Professional Liability Policy is an absolute must to protect your business should a claim arise from one of your clients claiming that they were harmed either by a negligent act performed by your company, or an error or omission happened when your company provided them with professional services. These types of claims can be very costly, and having this type of policy will protect your company.
Next up for review is your auto insurance. First and foremost, if your vehicles are registered to and used for company business, make sure your auto policy is a commercial policy and not a personal one. Typically, personal auto polices offer no coverage when the vehicles are used for commercial use. Also, make sure that the commercial auto policy has hired and non-owned auto liability insurance. This type of coverage will protect you if an employee of the company is driving their vehicle on company business, and they get into an accident. Non-owned auto liability coverage will protect your company should there be a lawsuit against your company resulting from the accident. We suggest that your auto coverage has a minimum of one million dollar policy limits.
We are aware that every business is different and will require specific coverages to protect it, and that is why we suggest that you sit down with an experienced and professional insurance broker to develop an insurance plan that will protect your company that is tailored to your company’s specific needs. If this is a course of action you would like to take for your company, please call the experienced brokers at PJO Insurance Brokerage to set up an appointment to review your current insurance policies.
PJO Insurance Brokerage
By Patrick O’ Neill
4103 E. Prickly Pear Trail
Phoenix, Arizona 85050