Insurance is a tricky business. Even for agents who have been in the business for a while, there’s always something new to learn or a change in policy to master. Sometimes it all comes down to a technicality to miss out on coverage that you may be entitled to. It is your insurance agent’s responsibility to make sure you don’t have to worry about those technicalities.
Steve owns a business. Steve also owns a small shed that is located on the business premises. While the shed contains valuable business personal property (BPP), it is not listed on the policy. Since neither the shed nor its contents are specifically listed on the policy, there is no coverage provided for these items. BPP coverage is only provided if it is within or on a building, which is described on the policy, or if the BPP is in the open within 100 feet of the described building. This could potentially be a troublesome technicality if Steve is unfamiliar with what constitutes as “in the open” or if it’s not close enough to the described building.
When the unpredictable nature of Wisconsin weather strikes again, a windstorm causes partial damage to the main structure of the business and destroys the shed – along with $23,000 worth of BPP.
The business property located in the main building is covered. But because the shed was not listed on the policy and the BPP located within the shed was not “in the open,” Steve’s losses in the shed are not covered. The result could have been different if he had consulted his local insurance agent to understand what his policy covered, and what it didn’t.
An insurance company should be your partner every step of the way. Your agent should make sure you are aware of all the possible liabilities in addition to your protection options. It’s not too late to call your insurance agent for a policy review to ensure you have adequate coverage for everything in your business.