Lubbock Business Liability Insurance

Lubbock business liability insurance packages come with two options: claims made and occurrence. The fundamental difference between claims made and occurrence policies is quite simple, as claims made policies only work when you're paying, whereas occurrence policies work for many years after that. On the other hand, all the subtleties between these two policies are quite confusing.

Insuring a Lubbock business is a complicated process. Unlike buying insurance for a car, buying insurance for a Texas company involves a lot of subtleties. Every company has a different set of risks, and therefore every company requires different specifics in their policy. So, the best way to make sure your Lubbock company is well-covered is to find a Texas insurance agent to help you assess your risks.

Claims Made or Occurrence?

If your work will last into the future, an occurrence policy will, at first, seem like the obvious better choice. Say that your Lubbock, TX company builds a house, and then, ten years later you retire. Five years after that, the house falls down, apparently due to a mistake in the foundation. The client decides to sue you.

If you had an occurrence policy at the time you built the house, you're still covered. Your Lubbock business liability insurance would have to include malpractice, in this case, if the house crumbles due to professional error. Basic liability insurance doesn't cover you for errors related to professional negligence, but malpractice does.

In any case, if you had an occurrence policy, it's still active, and should cover you because the incident was related to an event that transpired while you had the policy. If you had a claims made policy, on the other hand, you no longer have coverage. Unless you have a new claims made policy that includes a clause about prior incidents, or you're still paying for your old claims made policy.

Of course, you can purchase tail coverage for your claims made policy, which will extend coverage. However, it's much more costly than you'd expect. And, do you really want to have to pay for insurance for the rest of your life? On the other hand, going completely without coverage when your work could still injure people isn't a great idea, either.

So, the occurrence policy probably sounds like the best choice for you, but it comes with some problems. First off, an occurrence policy doesn't adjust for inflation, so it may not be sufficient to cover your costs in the future. Secondly, occurrence policies cost significantly more than claims made policies. Thirdly, occurrence policies aren't an option for every kind of business.

If you're not sure what kind of policy would work best for you, you may want to speak with a Lubbock business liability insurance. It will depend on the potential growth of your business, the time frame you plan to operate your company, and a number of other details. A good business liability insurance agent in Lubbock, TX, can talk to you about the disadvantages and advantages of each policy, given your particular situation.

Choosing Business Liability Insurance

Your Lubbock business liability insurance is only as good as the Texas insurer you choose. If the company you choose to insure you goes under, the results will be disastrous. If your Lubbock business liability insurance company denies you coverage or doesn't explain the fine print of their policy, you're in big trouble!

In fact, having bad Lubbock business liability insurance is worse than having none at all. Why? Because liability coverage is really, really expensive! It's necessary for your small Lubbock, TX business, but you need to have a good insurer for it to be worth anything. So, how can you find a good Texas insurer?

Generally, the best way to find a good insurer is to find a good Lubbock business liability insurance agent to help you assess your particular risks and find a suitable company. It's best to choose a Lubbock agent who has worked with companies in your industry, as he or she will be familiar with particular gaps, liability concerns, and so forth.

Of course, you don't want to leave everything up to your Lubbock business liability insurance agent. By all means, find a great agent, figure out what your particular liability concerns are, and let him or her do all the research and leg work creating a plan. However, when it comes down to the final decisions, you want to make sure you understand the details of the policies.

When you're ready to make your final decision, you should have a list of several Lubbock business liability insurance companies. Your agent should show you comparable plans, with the rates listed. Choose a trustworthy, reliable company, not just the one that cuts a good deal. You must be smart about this decision!

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