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When a customer or an employee is injured in an accident at your business, insurers may not always want to pay. And insurance companies are getting better at finding ways to deny claims. Even one loophole in a policy could leave a business with costs that are impossible to recover.
One of the best ways businesses can protect themselves from being caught without the proper liability insurance coverage is to conduct annual insurance audits. An audit gives business owners an opportunity to look closely at all aspects of their current policies, analyze exclusions in policies (of which there are many) and identify potential gaps in coverage before they become a problem.
The audit can uncover areas in which coverage must be increased but also areas in which the business may be carrying too much insurance.
During an insurance audit, business owners should try to determine:
• Risks the company has faced in the past.
• New or future liabilities for the company.
• Gaps in current coverage.
• Potential exclusions from coverage.
• Mistakes in the written contract.
• Necessary changes or updates to coverage.
Identifying where coverage falls short before an accident happens can save companies time, money and damage to their businesses. Employers who conduct regular insurance audits will be better prepared to protect themselves from liability claims, have a better understanding of how their policies work and be better able to find insurance policies that are in line with their companies' needs.
-- Beth Slagle, Meyer Unkovic & Scott, bas@muslaw.com
First Published October 4, 2010 12:00 am
