How Does Your Policy Rate?
Rating the adequacy of your insurance policy in advance of a disaster will eliminate many unpleasant surprises when it comes time to place a claim.
Answer the following questions to determine how your policy rates:
Is the information technology infrastructure covered by a separate policy?
Does a detailed itemization of assets exist?
Does the policy pay for the restoration of electronic data?
Are clearly defined loss claim procedures documented?
Does the policy have a “utility service interruption” grace period?
Does your insurance carrier have “pair & set” salvage rights over your property?
Does your policy cover all out-of-pocket recovery costs?
Is the process of determining the cost of interruption identified?
Does the policy exclude priority of payments of legal costs from coverage amounts?
If you answered NO to two or more of these questions, then your insurance policy is in need of an adequacy review. Begin by determining what your insurance needs are. Then meet with your insurance agent to review your current policy.
An independent policy analysis is highly recommended before you make any final policy changes.