Check out this post which highlights the importance of having a professional review your insurance policy. Whether you operate a large or small business, ensuring proper coverage is vital. Let me share a real-life example involving one of our clients, whom we’ll refer to as AAA Construction.
A trusted colleague referred AAA Construction to us. They had been in business for over five years and had been working with the same broker during that time. As is often the case, they believed their broker had been doing a great job and hadn’t encountered any issues. Many of you can probably relate to this sentiment.
However, when we delved deeper into their operations and requested to review their insurance policies the other broker had obtained for them, we made some intriguing discoveries. Brace yourselves, here’s what we found:
AAA Construction primarily worked on large-scale new construction residential housing projects, typically consisting of 30 to 100 units. It was during our review that we stumbled upon an exclusion clause in their policy, which read as follows:
Exclusion: ALL RESIDENTIAL CONDOMINIUMS, TOWNHOMES, TRACTHOMES; TRACT HOUSING OVER TWENTY UNITS
This exclusion applied to any residential single house within a project or development that included more than 20 individual residential units, regardless of the stage of development, planning, or construction.
But that’s not all. We also identified three other issues within their policy, collectively resulting in the exclusion of roughly 95% of their operations. The sad thing, this happens far too often within our industry and it is my sincere hope that this story resonates with you, prompting a thorough review of your insurance policy. It’s crucial to ensure that you not only have the correct coverage but also understand what you’re paying for. Insurance shouldn’t be solely about me or how much I can save you; it should be about you, the client, and safeguarding your business from potentially disastrous lawsuits or claims. Let’s take every possible step to protect you!
If you have any questions, I’m here to help. Thank you for reading!
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