Choosing the Right Agent
When it comes to business insurance, choosing the right agent is the most crucial step. Partnering with a commercial insurance broker who has a wide variety of experience and can clearly explain potential coverage and terms will guarantee exceptional service.
At Mountain Insurance: Longmont, our team has many years of experience meeting our clients’ business insurance needs. We pride ourselves on simplifying a confusing topic to create a seamless experience.
When professionals in the industry discuss commercial insurance, it can often sound like a foreign language. However, understanding the basic business insurance terms is a critical first step as you explore options with your agent.
Business Insurance Terms
The following are a handful of the fundamental business insurance terms you should know as you consider potential policies for your business:
- Carrier: Also known as the insurer or underwriter of the policy, the carrier is the company that is responsible for your insurance coverage, payments, etc., in the event of a claim.
- Adjuster: When a claim is filed, an insurance adjuster will review the claim and inspect the damage to determine the extent of the insurer’s liability.
- Claim: A claim is a formal report executed by the insured party that details damage or losses after an event and requests payment from the carrier.
- Deductible: The deductible is the amount of money you, as the policyholder, will have to pay out of pocket before your insurance kicks in and pays the rest of the claim.
- Declarations: Your insurance policy’s declarations will list the specific terms, coverages, and other essential details of your plan.
- Actual Cash Value: Actual cash value factors in depreciation to determine the value of your property at the time that it was damaged or stolen.
- Replacement Cost: Replacement cost is similar to actual cash value, except it does not factor in depreciation.
- Endorsement: An endorsement or rider amends the current policy to change specific terms.
- Coinsurance: Coinsurance is part of a business insurance plan that requires the policyholder to adequately insure their property according to its value; otherwise, there may be penalties or partial payments in the event of a claim.
- Aggregate Limit: The aggregate limit is the maximum amount a carrier will pay for claims over a specified period.
Let Us Help!
Obtaining a business insurance policy can be a daunting task. We would love to be a trusted resource to help you navigate the process. Please contact Steve Longenecker (303-808-9351 x2) at Mountain Insurance: Longmont with any commercial insurance needs or questions.
We give out $25 gift cards for referrals that become our insurance clients.
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