One of the most important parts of insurance is related to claims. In a perfect world, claims get paid without questions or disputes. But the reality is, it is never black and out. In most commercial claims, there are more exclusions than covered perils. To make matters worse, you discover these truths after a loss. An insurance policy is not written in simple terms and it is subject to interpretation as well. So how do you deal with these hurdles? I mean, consumers purchase coverage to have a peace of mind, right?

While insurance coverage is a great form of protection, you should never treat it as a “set it and forget it” type deal, because your effort is required in the equation. One of the most common claims is related to “wear and tear” or lack of maintenance. For instance, your car broke down because you failed to get an oil change, or there was a leakage on the roof because it hasn’t been replaced in the last 50 years. These incidents are hard to swallow, but they could have been avoided if you did your part, because they were certainly not accidental.

You should never rely solely on insurance coverage as the only source of remedy either. If you’re someone who runs a business, analyze what’s in front of you, and create a strategy to respond to the worst possible scenario. Train your staff and engage with the enterprise. With your preparedness as well as having insurance coverage to back you, you’ll be much better off, trust me. Don’t be the deer in headlights.    

Talk to an insurance professional to analyze your policy and use various scenarios to get a better understanding of how your policy could respond. This process will help you identify coverage gaps and save you from a lot of headaches in the future.