When you are buying commercial insurance, it is important that you have the correct coverage amounts. Should your coverage amounts be set too high, you may be paying much more for insurance than you need to. But if they are set too low, you may not be fully covered if something unexpectedly happens. But how can you determine what the right coverage amount is for your policy? Read on to find out more.
Determine Fair Market Value of the Items Covered
One of the biggest mistakes people make when it comes to any insurance policy is valuing their items higher than they are. An insurance company will only pay you fair market value for your belongings. Not how much you paid for the item or how much you think it is worth. It is how much it will cost to buy the same exact item in the same condition yours is in in today’s market. Valuing your items at fair market value is the first step in determining how much commercial insurance you should have.
Talk to a Professional
Once you have determined fair market value, talk to a professional insurance agent or broker. They are trained to determine the right coverage levels for you, whereas you are not. They have experience in coming up with the right amount, which makes it more likely that they can come up with the right level.
Trying to determine the right coverage level for your commercial insurance policy is hard to do by yourself. A trained and licensed insurance agent is the best person to help you make this decision. Here at First Florida Underwriters Inc, serving the greater Orange Park, FL area, our staff can help you find the best policy and coverage levels for your business. Call us today to get started.