Waypoint Insurance - Risk & Business Magazine VIIC Fall 2015 | Page 30

Business Insurance

Packaging vs. Custom-Fitting: The Low-Down
BY: BARB DE RUITER, COMMERCIAL INSURANCE SPECIALIST, VIIC

W

hen it comes to protecting your
business with the purchase of
a Business Insurance Policy, it can
be difficult to know just what to buy.
Today’s business insurance market has an
overwhelming variety of options available
to business owners. Additionally, many
factors come into play when choosing
which types of insurance to purchase
and what options to select. The most
important factor in the purchase of
insurance is the advice a business owner
receives on how and what to purchase to
protect their investment.
In recent years, the Commercial Package
Policy has become a popular risk solution
that applies to a large and diverse number
of companies and operations. Designed
for small to medium sized businesses
with under *$2M in Gross Revenue, a

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commercial insurance package is a great
way to bundle together multiple lines
(or types) of coverage at a reduced and
affordable rate. With the purchase of
basic business ‘contents’ or ‘building’
coverage, a package policy will likely
also include a minimal limit of coverage
for Business Interruption, Equipment
Breakdown, Crime and Commercial
General Liability. Additionally, there
are enhancements which can be made
for industry specific coverage. Valuable
Papers and Accounts Receivable for
offices, Blanket By-law and Glass coverage
for building owners, and Mobile Tools
and Equipment coverage for contractors.
With premiums as low as *$500, package
policies provide the basic coverage your
business needs while also allowing for
other important covers ( with pre-

RISK & BUSINESS MAGAZINETM FALL 2015

determined set limits) that would be of
great benefit in the event of a claim or
loss scenario. Some examples of this
would be;
Expediting expenses to hasten the repair
or replacement of damaged property
Accounts receivable to provide coverage
for those sums due from customers when
a/r records cannot be effected or collected
Costs to prepare a Proof of Loss form
which is required by the Insurers in
connection with any claim.
These packages are attractive because
of both their broad scope coverage
and lower premiums, especially in
comparison with customized business
policies. Even so, it is important to make
sure that a package policy is the right fit
for your business before you ultimately
make your purchasing decision. Just
because these packages have broad scope
and attractive premiums does not mean
they are always going to be the right fit
for every business.