Items Needed to Write a Policy
There are a number of items that are needed to write a general liability insurance policy. Without the required items, the insurance company cannot do the underwriting that is necessary to create the policy that is going to work for you.
But first, you should know what general liability insurance is and why you need it. You need it because it provides you with the protection that you need in order to not sustain damage to your business financially. In other words, you don't want to have to pay for bodily injury or property damage out of your pocket in the case that an accident occurs within your business that is deemed to be due to the negligence of someone within your business.
Although you will do everything that you can to avoid an accident, one is bound to happen anyway. The slightest misstep can cause an accident, so you need to be prepared. The accident can be one that is due to slip and fall on a wet floor or when operating heavy machinery around people who are not employees.
In order to open a policy for your business, you will need to present pieces of information that you will find is not like information that you provide when you open a personal insurance account for your home or your vehicle.
You will need to inform the insurance company of what kind of business you are in. That way they can determine whether or not you really need to be covered. There are very few industries that don't need to be, so you can be certain that it is going to be determined that you need to be covered.
Once the information is provided, you will then need to include identifying information about the business. For instance, the tax identification number, business license, any certifications that you need to conduct business in your particular industry. The contact person's identification may also need to be provided in order to establish a person's association with the company and to have someone to turn to in case there is a claim. If the contact person ever changes, the insurance company should be notified.
Any other pieces of identifying information may be required and will be requested, so you should make sure you have any and all paperwork organized and ready just in case.
Once the proper information and items needed to write a policy are acquired, the insurance company can then begin the underwriting process. Before this happens, though, you will need to establish your coverage limits. Look at settlements that have occurred in your area for workplace accidents and property damage. That way you can get an idea of what is occurring in your area so that you can make an informed decision about your limits.
Once you establish your limits, your policy will be written and it will contain all of the information you need about your coverage, thus answering some of your questions. You will also be given the information to file a claim.
Make sure you understand your policy and that there are no errors within it. If there are errors, you will need to point those out. Even the slightest error in your contact information can cause a problem, so make sure that it is not an issue. Once everything is okay, you can finalize your purchase and be confident when you are conducting your business.
As soon as a claim or a potential claim occurs, you can then call your insurance company to let them know. That way the claims process can move forward, if valid, and everyone can get back to their lives.