King of Prussia Commercial Insurance
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The Three Mistakes Made on Pennsylvania Commercial Insurance.
In our two previous articles we discussed two specific mistakes made on Pennsylvania commercial insurance that could cost your business a significant amount of money or lead to the closure of that business:
1- It will never happen to my business, will it?
2- Why do I need that Coverage?
The next mistake that we will discuss focuses on the amount of coverage that you purchase.
I don’t need that much coverage on my Business Insurance, do I?
Failing to purchasing a sufficient amount of coverage can leave the business owner in such a large financial predicament that they may have no choice but to liquidate their business.
Claims Example: A company specializing in heating and air is found responsible for the incorrect installation of a furnace that led to a natural gas explosion leveling three homes in one neighborhood and causing severe injury to four people.
A $10 million jury judgment is assessed against the business. Insurable coverage was only $1 million forcing the company to go out of business.
Mistake the Business Owner Made?
The business owner simply did not purchase enough coverage.
While it’s true that there isn’t a person that can predict with any accuracy future claims we may be held liable for, certain types of businesses have a hazard level significantly higher than others necessitating the need for umbrella insurance coverage.
The cost to purchase a $10 million umbrella would have been around $2,000 allowing the business owner to potentially remain in business and at the same time providing the funds necessary to cover both property damage and injuries caused by a faulty installation of one of his employees.
Because of the complexities of insurance the very first step you may want to consider working with a professional agency knowledgeable and experienced in insuring businesses.
Call the Pennsylvania Commercial Insurance Experts.
We are a leading independent insurance agency in Blue Bell Pennsylvania and we can help you find the coverage you need for your business. Call 215-646-5633 for the best options on Pennsylvania commercial insurance.