When shopping for business general liability insurance, you'll come across three frequently used terms, these are premiums, policy limits, and deductibles. Knowing this insurance jargon can help you save money and time as you look for ways to protect your business.
Insurance appears to have its own language, with sometimes perplexing terminology. While you do not need to be fluent in insurance definitions, there are some terms you should be aware of. Below, we will define some of the important factors you should know regarding your insurance coverage to help you better your coverage.
Continue reading to learn more and find out why Stampede Insurance should be your first call when you need comprehensive insurance coverage.
A premium is the price you pay for your insurance policy. In a nutshell, it is the cost a customer will pay for their insurance policy or plan.
Depending on the arrangement you work with your insurer, premiums are typically due monthly, quarterly, semiannually, or annually. Furthermore, most insurance companies offer discounts if you pay your premium once a year or in full when you purchase the policy.
If you do not pay your premiums, your policy will be canceled or lapsed. If you miss making a payment for your premium, you will have a grace period to do so. If you continue to fail to pay payments, your policy will expire, leaving you vulnerable to future losses.
Insurance coverage limits carry the maximum amount your insurance company will pay for a singular claim or multiple claims on each type of liability coverage you have. You may be held personally responsible if you incur additional expenses after your insurance has paid up to the limit.
In some cases, you can specify the limit of a policy. Other times, you may be required to meet minimum requirements set by the government or another party in order to obtain the desired limit.
Policy limits typically have the greatest impact on general liability and professional liability policies, but this does not preclude other types of coverage. Remember that this sets a cap on payouts. However, the maximum amounts can change depending on the type of loss.
The primary purpose of insurance is to manage risk more affordably and effectively. In other words, businesses try to spread the risk more broadly through risk-sharing rather than simply bearing the brunt of all exposure. Your insurance deductibles are an important factor in risk management.
An insurance deductible is the amount of money you pay out of pocket for a loss before your insurance kicks in. The insurer will only provide financial coverage after you have met your annual deductible.
Deductibles can help businesses in tailoring their insurance coverage to their specific needs. Deductibles are flexible, depending on whether you're willing to bank on a significant amount of vulnerability or if your budget requires a specific amount.
Policy deductibles are an excellent way to tailor your policy to reflect your risk appetite and budget, whether you're purchasing general liability, professional liability, or errors and omissions insurance. However, understanding the specifics of what coverage your company needs can be a difficult process.
Luckily, Stampede Insurance specializes in understanding the risks your industry faces, and the right business general liability insurance coverage will provide you with adequate personal injury protection.
For over a decade, Stampede Insurance has been a trusted insurance provider to give you peace of mind in the event of the unexpected.
Our number one goal is to provide services that give you business insurance policies that are suitable for both your professional and personal lives—and protect people, your possessions, and your business from the risks of loss, damage, and theft under agreed-upon underwriting terms.
For more information about how we can help you with your business general liability insurance needs, one of our dedicated business partners or knowledgeable agents will find you a comprehensive solution for all of your insurance and business questions. Contact us at 888-306-7887 at Stampede Insurance Services today!