By: Colin McDonald
Last month’s article touched upon the very attractive insurance plan Philadelphia Insurance Companies put together exclusively for NAME members. The basic policy offers general liability coverage which protects the insured from third-party claims arising out of bodily injury or property damage. The minimum premium is $175 but how much coverage does that give you?
Basic Coverage
The basic limits of the NAME program include liability limits of $1 million per occurrence with a $2 million aggregate. “Per Occurrence” refers to the total amount the insurance company will pay per accident during the policy term. Your “Aggregate” limit is the total amount the insurance company will pay throughout the whole year.
Imagine you have a full bucket of water and that is considered your $2 million aggregate. Every time an accident occurs we pour a little bit of water out of the bucket. Once you have poured all of the water out of the bucket you have nothing left and your $2 million aggregate is exhausted. After you have exceeded the aggregate limit you would have to pay the remaining amount out of your own pocket.
Umbrella Coverage
However, in this exclusive program, we do have higher limits for an additional fee. Some venues may require their DJ’s to have higher limits. We offer a plan that includes $2 million per occurrence with a $2 million aggregate for $262 annually. The program recently has made an Umbrella Policy available for NAME members as well. What does an umbrella have to do with insurance you might ask? An Umbrella Policy sits over top of your liability policy. An umbrella policy only pays once your basic liability limits have been exhausted. It is essentially another layer of coverage. We offer an umbrella policy for a flat payment of $500 which a $3 million limit. As a NAME member, you are able to get up to $5 million worth of coverage.
