Should I Purchase Riders?

No sensible business owner would want to risk any part of their business by not having adequate liability insurance at all times. But, what if there are situations that arise in the future you would want proper insurance for like a third party liability claim, yet you have no way of foreseeing at the time of purchasing your basic policy? This is where riders may come in and be of help.

What Riders Are

Riders to insurance policies add or waive certain things like coverage types and amounts to an existing policy. They are called riders because they essentially ride on an existing insurance policy. They often provide supplemental coverage without a need for changing the entire policy to accommodate the additional coverage which may not be the most convenient, or affordable, option.

There are reasons you may want to purchase riders in the future. They will cost additional amounts which vary depending upon the changes you are seeking. Yet, if you keep in mind how much more affordable a rider can be versus purchasing an entirely new policy, it may make good financial sense to purchase one.

For example, you purchase a general liability insurance policy when you start your company. In future years, it grows beyond your expectations. Along with this growth comes greater liability, so you wish to purchase additional insurance which would protect your interests in the event your health declines unexpectedly.

Instead of keeping your policy as it stands, you contact your broker and work together to get a supplemental clause added to the policy insuring you for the specific additional coverage. If it is helping to insure you and the business in the event your health becomes an issue keeping you from running the business, it could be a wise move. You can avoid having to seek individual coverage at that future time which you may not qualify for due to the health condition.

Or, if you did qualify for that kind of coverage the price for it would be much greater than the cost of a rider you purchase now. Also, there is no need to purchase an entirely new general insurance policy for your business just to make this one change. You simply purchase the rider and it becomes a part of the existing policy.

Considering Insurance Riders

Insurance riders are not just affordable ways to incorporate protecting previously unforeseen risks to the business. They can be convenient tools to keeping your coverage as up to date as possible. When you started out in business for yourself there may have been things that you could never have realized you would want individualized insurance coverage for. Perhaps, as your business grows, you take on more equipment which you would want covered specifically by a rider because of the importance the equipment has in keeping your business going.

Whatever the need may be, when you get to a point in owning your business where you realize that certain things need specific additional coverage, this is a good time to consider purchasing insurance riders. You do not need to go through the process of shopping around for an entirely new business liability insurance policy. You can simply investigate adding the desired coverage by way of purchasing an insurance rider which will cost your business considerably less money.

Riders can take away or waive coverage just as they can add coverage. So, if the need arises for a certain kind of coverage to be removed from your policy you can easily do this by way of a rider purchase. If you are ever in doubt, discuss with your broker whether you should purchase riders for your business.

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