Think before adding coverage

One of my jobs at the agency I’m with involves reviewing the current insurance programs for prospective clients. It’s interesting what one sees.

For example, today I check a policy for a building owned by an individual who leases it to a business. Pretty straightforward stuff – property coverage on the building, some loss of rents coverage and a pretty basic general liability policy.

But, they also had an employee dishonesty section. This was not a throw-in, but rather a separately rated coverage section with an additional premium of over $500.

The insured was an individual with no employees. What was meant to be covered by this endorsement? Employee dishonesty policies exclude the owners – no insurance company covers someone for stealing from themselves. And, there was no one who could steal from the owner who qualified as an “employee”.

In short, over $500 down the drain.

The moral? Just because an insurance coverage is available doesn’t mean you need it. Insurance policies need to be thoughtfully matched to the client.

This entry was posted in crime and tagged , , . Bookmark the permalink.