At MIG, we take your business insurance requirements seriously. We have a team of dedicated commercial brokers to adequately assess your insurance risk. To our MIG team, commercial insurance is not a sideline – it is our business.
Many business insurance policies can contain a co-insurance clause which is designed to encourage businesses to insure their property to full value. If your insurance policy contains a co-insurance clause, you could be at risk of being underinsured, even for a partial loss.
If a policy holder does not insure to full value, either inadvertently or on purpose, the co-insurance clause will see the business owner participate in a share of the loss to the same proportion that they are underinsured.
For example, if you own a retail operation that carries $250,000 in merchandise and you only insure your stock to $125,000, under the terms of the co-insurance clause, because you insured to 50% of the actual value of stock, you would be required to share in 50% of any loss that might occur.
This clause can act as a penalty for not carrying adequate limits of insurance coverage and, as you can imagine, could have a very detrimental effect on your recovery after a loss. As your insurance broker, we will work with you to determine proper limits of coverage based on information provided by your company. In doing so, we can have the co-insurance clause waived from your business insurance policy. Please feel free to contact our Commercial Insurance Services team at any time to review coverages with you. Our goal is to work with you to provide the best protection for your business, your livelihood.
Risk management can be a very important element of your business planning process. The objectives of developing a risk management program include:
| Low chance of occurrence, such as risk of earthquake |
| Possible chance of occurrence, such as risk of fire or water |
| Likely chance of occurrence, such as risk of burglary |
To establish a risk management program for your business, you will first need to develop an action plan to assit in achieving these four objectives. The action plan will include very specific strategies to address prevention, control and reduction of potential hazards and risks in your operation. Following are some examples of actual strategies that you may want to include in your plan.
Prevention Strategies:
Control Strategies:
Reduction Strategies:
As a business owner, you have some options to consider regarding the degree of risk to which you expose your business. You can transfer the risk by purchasing commercial insurance coverage. Or you can retain the risk and spend the dollars necessary to reduce the degree of risk you are assuming. Better yet is a combination of reducing risk and transferring the risk via insurance coverage.
In some instances, insurance companies and building codes create an automatic risk management process for businesses. There are some requirements that must be met by the business before insurance can be obtained. These conditions assist everyone in reducing potential hazards and controlling costs.
As your insurance broker, we at MIG will make it our business to know your business and the risks to which your operation may be exposed. Working with you, we will conduct a complete review of your specific commercial insurance requirements. In the process, we can help minimize risk factors in your operation and provide the insurance solution best suited to your business :
For more detailed information, please contact us at info@miginsurance.ca or complete the "request a quote" form or access our LIVE CHAT by clicking the icon. We will be happy to provide an estimated premium quotation for your home, auto or commercial insurance with no obligation.