When it comes to commercial insurance, there’s so much to know. You would do well to research some things before you set up your policy for your business. The following are terms that would be helpful to know about commercial insurance.
Open Perils
This covers all losses besides ones that are specifically excluded. Earthquakes and other earth movements, as well as floods, are common perils that are excluded under this type of coverage.
Specified Perils
Specified perils come with a list of each peril that will be insured against. This includes windstorms, vandalism, fire, and explosion, among other things. You’re able to request either broad or basic specified perils coverage. Broad adds to the list of the covered perils you see with the basic version.
Aggregate Limit
This is the maximum dollar amount of coverage that’s in force for a liability or property damage policy. It can be determined on a per-occurrence basis, or you can apply a general aggregate for the term of the policy.
Agreed Value
Agreed value is a method of loss valuation by which the insurer and insured person come up with an agreed amount the insured will be paid in case of a loss.
Binder
This short-term agreement offers you temporary coverage until your policy is issued or delivered.
Occurrence
This liability policy covers claims that arise out of occurrences taking place during your policy period, no matter when your claim is filed.
Written Premium
This is the total premium between all the policies that are written by your insurer in a certain period of time, regardless of the portion that’s been earned.
Choose a reputable company from which to get your commercial insurance policy. Serving the Baraboo, WI area, Johnsen Insurance has agents who can make the process easier.
