Are you covered: know your risks and current insurance trends.

AuthorHeld, Shari
PositionINSURANCE

WHEN IT COMES TIME to renew your business insurance, examine your business needs and the trends in the marketplace before signing on the dotted line. Here are some current trends and issues to think about from the industry experts.

"Every year you really need to look hard at what kind of limits you have and measure that against either assets of the company or risk tolerance or the kind of business you are in," says Brad Dumbald, vice president for Indianapolis-based Gregory & Appel Insurance. "If you own a shoe store, your exposure is a lot different from someone who owns a trucking company. You just need to keep variables about how much you really need to have on the high side."

The good news is that insurance is in a "soft" phase now.

"Generally speaking, the cost of liability insurance for businesses has come down significantly in the Midwest and in Indiana over the last 24 months," says Tom Flynn, president and CEO, Old National Insurance. "That's one trend. A byproduct of that is that some businesses might consider carrying higher limits or additional types of liability insurance."

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The bad news?

"The U.S. is a very litigious climate," says Bob Prox, senior vice president commercial insurance for Forrest Scherer in Terre Haute. "When someone gets hurt, they get a doctor and a lawyer almost in the same breath. One trend we see is for bigger dollar judgments. The plaintiff attorneys are seeking and demanding greater recovery."

General liability and Business interruption. The first step is to get the basics and go from there.

"Basic insurance is a general liability policy (GLP)," Dumbald says. "The basis for general liability is bodily injury or property damage. So if you produce a product and it injures someone, the GLP is going to be the policy that responds to that claim or suit. There are a couple parts to a GLP--product liability and premises operations."

The property program ensures the buildings and their contents. Skip Treco, president and CEO of Hylant Group in Indianapolis, says that content coverage should include things like hardware and software technology and boiler and machinery. "You also need to have an umbrella liability policy that sits on top of your automobile and your general liability insurance," he advises.

Business Interruption insurance, sometimes referred to as Business Income & Extra Expense, is another necessity. "This covers lost profits and continuing expenses in the event that the...

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