How Much Will I Pay Out of Pocket if I Make a Claim?
When you purchase your business liability insurance coverage, it is just as important to consider the costs involved in making a claim as it is to consider the costs involved in paying the premium. While no business owner wants to have to make use of the insurance by filing a claim, if it ever becomes necessary to do so, the process does involve some expense. This is why it is important to know ahead of time just how many company cost rises would be required to pay out of pocket.
The Process of Filing Claims
Most of the time filing an insurance claim of any kind is something that is done at a time of significant emotional stress. For example, if a customer fell and hurt themselves significantly at your business's property, you would probably be concerned or worried about their condition. Filing your insurance claim would be a necessity, but if you are upset it can create more difficulties in the process.
The last thing you would want to face is being unprepared financially. When you file any type of insurance claim a deductible is usually involved. The deductible is the amount you are responsible for paying out of pocket before the insurance company will process a claim and provide you with the appropriate amount of monies to remedy the situation.
If you are a new business owner, it can be a shock to discover that you need to pay your insurer one thousand dollars to satisfy the deductible before the claim can be processed. You would be in a position where there would be very little time to come up with the deductible if you were unprepared to pay it. This could occur to a business owner with any length of experience.
After all, insurance claims are not necessarily every-day occurrences. If you have owned your company for fifteen years before needing to face filing an insurance claim for your company, it can be a process that catches you off guard. This is why it is important to understand what will be involved in the event your company needs to draw on its business liability insurance coverage.
When you purchase a business liability insurance plan, make sure you understand how much of a deductible is involved. If the amount is five hundred or one thousand dollars, you may want to keep that amount in a reserve fund just in case. Otherwise, at the very least you understand that the deductible must be paid at the time of filing a claim.
You also will not be surprised about how much that deductible will cost. This understanding will keep an already potentially stressful situation from becoming more stressful. Naturally, you as a business owner will have the assistance of an expert insurance representative to assist with getting the claim filed properly. But, always keep in mind when purchasing coverage that it is a perfect opportunity to ask about any potential out of pocket costs involved in filing future claims.
Other Out of Pocket Costs
No matter how sufficient your business liability insurance policy is, it could be that you are faced with filing a claim which is not completely covered by that policy. In this instance your company may face cost rises after claims. How much that out of pocket cost will be is something you must ensure you discuss with your agent or broker at the time you purchase a business liability insurance plan. This can be the most helpful way to keep an already stressful situation from becoming worse.
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