What are Specialty Insurance Policies and Do I Need One?
Specialty insurance coverage is a policy that can be purchased for items that are unique or deemed special. Most of these items are not typically covered under a general insurance policy, or additional coverage is needed to ensure the item can be replaced. You may be wondering whether or not you need a policy of this type, and the answer could be yes. Specialty insurance policies include things such as flood insurance, boat insurance, added protection against fire, theft or flood damage, and others. These could be included in a business owners policy or available as a standalone. Understanding the basics of specialty insurance is key. If you have a large inventory, having specialty insurance coverage could mean the difference between staying and being put out of business.
Shopping Around for a Specialty Insurance Policy
When looking for a specialty policy for your business, using a specialty insurance broker specifically designed for business will be beneficial. It’s also important to do your due diligence and research the different types of policies that may apply to your situation to make sure you know what the agent is talking about once you contact them. One of the most important things you can do is ask in-depth questions and have up-to-date information to determine if there are any trends that currently affect the industry.
Your insurance provider should be able to point you in the right direction, in addition to helping you find the right pricing. Once you get the first quote, shopping around can help you determine whether or not you have been given the best deal. Keep in mind there are a number of factors that could affect your quote, including location, number of years in business, number of employees, amount of inventory, and more.
How to Know if You Have a Specialty Business
If you have a specialty business, chances are you will definitely need business insurance. Some of these businesses include attorneys, publishers, translators, travel agents, professional organizers, event planners, notaries and other niche professions that may have a lot of traffic but are not classified as a normal business in insurance standards.
Do you have specialized equipment you use in the day-to-day operation of your business? Businesses like ferry boat operations will need to have specialized boat insurance. Tour guides need commercial specialty insurance. Although not a typical nine-to-five job, they still have employees and work with customers, so they need insurance coverage to not only protect their business, the people they serve.
If you are not sure where your business falls, an insurance agent should be able to properly advise on whether or not you fall into a specialty classification that delivers specialty services. In some cases, this is not a bad thing, and you may end up having a better quote than you imagined. The main thing in these cases is knowing where your business sits so you can properly get the coverage you need. Being proactive in determining whether or not you will need specialty insurance is key.
This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.