When buying commercial insurance you want to be able to know what you are getting to ensure you have the proper coverages. But the terminology on the policy can seem overwhelming if you do not speak in the same language as insurance brokers do. Here are a few terms that generally you will need to be knowledgeable about to get you started.
If you see ACV or Actual Cash Value on your policy this is what describes the actual value of your property if an insurance company had to pay you cash for it. It will include property and value of profit. You will want to make sure that this number is agreeable to you because if you need your insurance this is all that you will get.
Business interruption insurance is a good thing to have on your policy as it protects you in the event that your business cannot function due to any cause unless it is listed on your policy. You can cover cost of loss earnings, taxes and payroll with this type of coverage.
For extreme circumstances for a larger corporation you can have Difference in Conditions (DIC) coverage on your policy. This is only for larger needs and may not be needed for a small business as your other insurance will cover it. It will cover large catastrophes such as a flood. If it is not on your regular insurance you can have it added later on a separate policy.
Employee Dishonesty Coverage can be written into your policy to protect you if an employee steals money or property from you. It depends on your type of business if you need this specific clause and many times it is in your blanket coverage to protect everything. Check with your broker to see if you should get added coverage like this.
These are a few terms to get you started. You can find many more online that are specific to the terms you need to understand. Make sure you do understand what your coverage is before you need it. You can be covered and understand what you have in coverage by understanding the language of your policy.
Getting commercial insurance quotes online allows you to compare coverages and find the right commercial insurance agency to purchase coverage from, without having to call all over the place and waste your time.
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