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Follow on Google News | Businesses Could Face Serious Financial RisksMany businesses could be in for a major suprise if they have an insurance claim and have not insured correctly.
By: Rick Allwright The “Co-Insurance Clause” in almost every commercial property insurance policy has the power to dramatically reduce the amount of money you would receive in the case of a partial loss. “Most people don’t read their insurance polices and therefore have no idea that this clause exists, and unless their broker tells them they will go on not knowing about this clause until the have a claim” says Rick Allwright of Fairway Insurance Services. The “Co-Insurance Clause” is the way the insurance companies are able to penalize you for not insuring your property to the proper amounts. It only gets used when there is a partial loss but since most claims are partial losses the insurance companies have this clause in place to make sure they are not losing money due to businesses not insuring properly. “We have seen an increasing number of claims not being paid out completely because properties are not being insured to the proper values and the Co-Insurance Clause gets used and there have been some very significant claims in recent history” says Rick Allwright According to Rick Allwright, if a building is insured for $100,000 when it should have been insured for $200,000 and you have a $20,000 claim, the amount paid out will only be $10,000 leaving you to pay for the rest. Rick goes on to say “if you are not sure that you have the proper amounts of coverage look at your policy and then call your broker. Your broker is here to assist you and if you feel like your not getting the proper assistance find a new broker.” # # # Rick Allwright of Fairway Insurance is a risk management advisor protecting your business from the finanical risks you encounter every day. We work with you one on one to reduce your risks and increase profits. Call Rick Now 902-746-4608 for a free review End
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