Insurance disputes can be avoided if proper coverage is paid for upfront
When we see someone else’s car breaking down on a freeway, we pat ourselves on the shoulder that it wasn’t our cars, and felt good that we have regularly maintained our cars at every milestone. Our investment upfront saves us the danger of having our cars puffing and smoking in the middle of the road. Insurance disputes likewise can be avoided, if proper coverage is paid for upfront. However, not all insurance agents can do the hospitality insurance right, just like a VW mechanic cannot maintain a BMW as expertly as a BMW specialist.
Know all the risks or the impact of exclusions and limitations in insurance policies
Moreover, most owners do not know exactly all the risks, or the impact of exclusions and limitations in insurance policies. Just like a BMW driver is not expected to know about the specs of its mufflers or engines; it is the mechanic’s job. Likewise, it is an insurance agent’s job, to thoroughly review your business operations, be it a restaurant or a night club. What differentiates a “VW” insurance broker from a “BMW” agent, is whether s/he is pushed to initially set forth, in letters and agreements, the exact type of relationship and service expected, the exact scope of coverage desired, and the thoroughness of value investigation needed, in order to be fully and safely insured. This saves the business owners the “car” breaking down on the road, what we call “insurance disputes”.
What created the underinsured or uninsured problems
When unexpected situations happen, property either underinsured or uninsured become the subject of insurance dispute. What created the underinsured or uninsured problems in the first place, was mostly because of:
- Improper values for replacement/reconstruction.
- Wrong ownership/title/interest on the policy.
- Not covering every aspect of the property—Some hospitality business owners do not have sufficient understanding about their policies. Some “VW” brokers do not always explain clearly enough that the policies do not always cover every peril: many coverage forms exclude certain types of property or limit recovery. Endorsements or separate stand-alone policies are often needed to have all the insurable property insured.
- Coverage of all perils often needs additional forms. For example, flood and earthquake are not covered under a standard form, but may be insured through a “difference in conditions” policy. Economic loss arising from criminal or fraudulent conduct may have to be insured under various Crime Forms.
We are the Extra-milers
The Rick Callaway Team at the Pacific Diversified Insurance focuses on protecting businesses of hospitality and commercial real estate, with more than 30 years of in depth expertise and business acumen. We are the Extra Milers, we go deep, far, and wide, by getting you the right coverage with the right policies up front, to minimize the chance of any insurance disputes down the road. “Protect businesses, extra miles.”