Business & Commercial Property Owners
Running a business can be difficult. The added burden of an insurance claim can cripple a business owner’s cash flow and bring production to a standstill. Ultimately, if the claim is not handled expeditiously and in detail, business and commercial property owners stand to lose substantial capital.
A business owner policy will generally afford coverage for direct damage as the result of a covered loss to the to the Building and Business Personal Property. Indirect coverage will generally include Business Interruption, Extra Expense and Law and Ordinance. Each coverage affords separate limits and requires individual claim preparation and presentation. All coverages contain vital stipulations that can hinder the claims process and insurer payout if not abided by.
Several sections in the insuring agreement can be subject to interpretation, so a straightforward discussion with your insurer is not likely. For example, your policy will contain a Co-Insurance clause. Do you understand what the term Co-Insurance means and what penalties will arise should you be deemed to have a Co-Insurance issue?
In short, if your insurer determines that you are not carrying enough insurance based on their opinion of your property’s value, you will be subject to a penalty. This penalty, no matter how large or small, will reduce the insurer payout.
However, what your insurer will likely not tell you, is that property value can be determined using several different methods. Based on the method used and property type, values can sway 50-60% in either direction. An increase in value of just 10% can bring your property to “properly insured” which can negate all penalties and increase payouts by hundreds of thousands of dollars.
Don’t let the ambiguity with the commercial form open the door for your insurer to make a less than reasonable offer. Let our seasoned team of public adjusters’ remove all the vagueness from your claim so that you receive what you are entitled to.