What Is Minimum Coverage And Do I Need More?

Minimum auto insurance coverage, in most cases, is not enough to ensure that you are completely protected from the financial and legal responsibilities that may result if you were ever to be involved in a car accident. Here are some facts about minimum car insurance coverage and whether it is enough for you.

What Does Minimum Coverage Include?

Minimum coverage is just that-the minimum. The amount of coverage you need to be legally insured as a driver. It covers you for a very specific amount of liability for any damage you may cause to others’ property, or for any medical expenses and lost wages that may incur as a result of an accident in which you are at fault. It does not provide you with any coverage for your own property or medical expenses for you and your passengers. In many cases the minimum amount of liability insurance may also not be enough if you are involved in a serious accident, and you will be personally responsible for the amount it costs beyond your coverage.

What Should My Minimum Coverage Really Be?

If you want to keep yourself protected as a driver, but still do not want to pay the high premiums, what types of coverage should you have? In general, it is smart to be sure you have both collision coverage, which will pay for repairs to your vehicle, and comprehensive coverage, which will protect you from natural disasters, theft, or vandalism in addition to your minimum liability coverage. This will protect you from out of pocket expenses for repairs to your own vehicle and any medical expenses you may incur. To keep your insurance expenses under control, choose the highest deductible you can afford.

The purpose of any type of insurance is to protect you from the expenses of unforeseen and unavoidable life events. Choosing coverage that provides the right protection is important, and finding a balance between protection and cost is the best way to do this.

How Much General Liability Coverage Do You Need?

How Much General Liability Coverage Do You Need?

You know you need liability insurance to protect your company from lawsuits arising from injuries or property damage as a result of your own direct or indirect actions. But do you really have a good grasp on just how much coverage you need? Your commercial insurance package policy probably came with a base level of general liability coverage; in most cases, increasing that coverage is more than just a good idea, it is a must.

Lawsuits Are A Reality

You have probably heard about million dollar lawsuits brought against major companies by people who were injured as a result of negligence. You may even have thought some of those lawsuits were frivolous and unfounded, but the fact that you heard about them probably indicates they went to court. And if they went to court, those companies were forced to defend against them, spending a lot of money on legal fees. Do you have enough coverage to handle those legal fees, and also pay out a settlement if your day in court goes against you?

Many small businesses believe that they will not be the target of such a high dollar lawsuit because they aren’t big names. This thinking is dangerous; while some people may increase the dollar amount of their lawsuit when they know a company can pay, large lawsuits are still often brought against smaller companies. And smaller companies are the least able to absorb the loss if they are forced to fight a court battle and pay out on a settlement. Which is why these companies really do need much more liability coverage than they may believe.

Carrying Enough Coverage

General liability insurance covers you for a wide variety of potential negligence situations, and it is actually one of the less expensive coverages for most companies. When it comes to determining how much you need, the simple rule is that more is better. If the option is there to increase the coverage and it doesn’t make a large difference in your premium, you should always take it.

The cost of a liability claim can rise quickly, and if your coverage limits are met you will be left to pay any remaining costs yourself. If you have ever been involved in a lawsuit you know how expensive lawyers and court costs can be. Add to that the amount that a judge may award the claimant and you are looking at a serious financial loss. General liability insurance is the simple and affordable way to make sure this doesn’t happen; give us a call to be sure you are carrying enough, and increase it if you can. When it comes to liability, better safe than sorry is always the right way to go.

Choosing Liability Coverage For Your Business

No matter what type of business you run, you need to protect your interests with the right insurance policy. Every company needs a variety of different types of insurance; some of these policies are the same no matter what kind of business you have, while others might be specific to your industry. One of the coverages that remain the same across the board is general liability coverage.

What General Liability Is For

There are a number of different types of liability policies you can purchase to protect yourself from potential financial responsibility. General liability is one of the less specific forms of coverage and provides a generalized, overall coverage for liability claims resulting from a wide array of possible incidents. While it will not protect you from everything, a good general liability policy provides you with a solid foundation.

A general liability policy gives you coverage for defense from lawsuits and to pay out financial claims when negligence on your part can be proven. It prevents your company from facing potentially serious financial damage due to property damage, injuries, or any other claim that can be proven to be a result of your company’s actions or products.

Choose Your Policy Carefully

When you select a liability policy for your company, you should first make certain that the policy covers you from all angles. If you have specific risks that are not covered by general liability, you may want to purchase additional policies to provide that coverage. It is important to understand what is covered by your general liability policy and what is not; waiting until a claim occurs is not the best time to discover the exclusions in your policy!

Be certain that a few basics are being covered by your general liability policy. You want to be sure that you have good public liability coverage-meaning that members of the general public who might sustain injury or loss as a result of negligence on your company’s part can be compensated. You also need to be sure that you have enough coverage to protect yourself properly.

Your general liability policy is one of the most important you will select as a business owner; it takes only a quick look at the news to see the array of claims consumers have made against companies in recent years. Many of these lawsuits ended in favor of the claimant. Without good liability coverage, your company could wind up paying these claims out of pocket. Take the time to make sure you have selected liability coverage that meets all of your needs and potential risks.

Because Accidents Happen

One of the most essential elements of protecting the survival of your business is general liability insurance. While this type of coverage is especially important if you have significant interactions with the public, the sad truth is that in today’s litigious society, EVERY business should protect itself against the possibility of lawsuits.

Perhaps you believe your particular business is so low risk that commercial liability insurance doesn’t make statistical sense for you. In which case, let me ask you a few questions.

• Does your business have a common area such as a storefront or reception area?
• Do your employees often drive as part of their job-related activities?
• Does any part of your business involve the operation of heavy equipment?
• Do you manufacture any item intended to be used by others?

If you answered “Yes” to any of these questions, then you aren’t low-risk enough to even think about passing on general liability insurance.

But even if you answered “No” to all of the questions, you should still make it a point to protect yourself by purchasing a general liability insurance policy. Why?

Individuals can legitimately hurt themselves or cause accidents in an infinite number of unpredictable ways. In some jurisdictions, courts have held that property owners are liable even for injuries to trespassers and thieves. In the event of any sort of incident, the opposing attorneys are more likely to act responsibly if they know they have to deal with a huge insurance company instead of an isolated business. You’ve got enough to deal with trying to make an honest living without having to worry about lawsuits falling out of the sky.

The Daigneau Insurance Agency specializes in matching businesses with the most appropriate policies for their commercial insurance needs. If your company isn’t already covered by a general liability policy or if you would like us to review your current plan, please give us a call ASAP at 401-433-1111.  Let us provide you with greater peace of mind and make sure your business is protected against the vagaries of fortune.