Proper Insurance Coverage

By Trevor Drake, “Insurance Professional”

Insurance comes in all different shapes and sizes and is available for any type of situation where you want to mitigate your potential for loss. From protecting the top decision makers of fortune 500 companies, to protecting the top draft picks of your annual fantasy football league. It is important to know if you have the proper coverage at the most competitive price. Here is a short list of the most common types of Commercial Property & Casualty Insurance and what they protect.

First, it is important to decipher the two different areas of insurance, first party (property) and third party (liability). First party is a claim that must be paid directly to the person being insured. Third party is a claim that involves the insured, but also a third party to the insured. A scenario that encompasses both would be if you get in a car accident and you are found at fault. Your first party insurance would cover the damage to your car. Your third party (liability) insurance would cover the damage to the persons’ vehicle you hit since you were at fault.

Property Insurance includes a laundry list of different coverage. Some which include the following: buildings, contents of buildings, personal property of others, tenant’s improvements and betterments, business income, extra expense, boiler & machinery, building ordinance or law, earthquake, rental income, crime, flood, etc. The list goes on and on.

Auto insurance which includes first and third party insurance also has a wide array of coverage. Some of these include: auto liability, auto physical damage, lease gap, underinsured, uninsured, drive other car, hired and non-owned, rental reimbursement, garage coverage, etc. This list goes on and on as well.

General Liability is straight third party liability coverage and just like property and auto has a number of different coverage within. Some of these include: professional, management, cyber, stop gap, liquor, crime, products, pollution, etc. and once again many more.

Workers Compensation is liability insurance provided by an employer for employees. It is a statutory benefit that all companies must provide this type of insurance to protect their workers from injury while on the job.

Although many believe insurance is a commodity good, it is not. Insurance becomes a commodity when all you are looking at is price, but there is much more to it as you can see above. As the old adage goes, ‘you get what you pay for’ the same holds true in insurance. Make sure you are properly covered for the risks you face. Do not unnecessarily risk your financial well being by assuming you are covered. Remember, you cannot put a price on peace of mind.

If you would like more information about various coverage options, please contact Brown & Brown of Pennsylvania at 844-334-7877.