The Document You Need to Understand

Your insurance policy is a contract. It specifies exactly what is covered, what is excluded, your obligations, and the carrier’s obligations. Yet most business owners never read it. When claims arise, this lack of familiarity can lead to unpleasant surprises.

Policy Structure

Commercial policies follow a standard structure. The declarations page summarizes key information: who is insured, what is covered, limits, deductibles, and premium. This is your quick reference.

The insuring agreement describes what the policy covers in broad terms. This is the promise the carrier makes.

Exclusions list what is not covered. This section often determines claim outcomes.

Conditions describe your obligations: how to report claims, maintain records, and cooperate with the carrier.

Start with Declarations

The declarations page is your policy summary. Verify that your business name, address, coverage limits, and deductibles are correct. Errors here can cause problems later.

Understand Your Exclusions

Exclusions matter more than most people realize. Common exclusions include intentional acts, contractual liability, pollution, employment practices, and professional services. Knowing what your policy excludes helps identify coverage gaps.

Review Endorsements

Endorsements modify the base policy – adding coverage, removing exclusions, or changing terms. Your policy includes a list of endorsements. Review each one to understand how your coverage has been customized.

Ask Questions

If you do not understand something, ask your agent. Getting clarity before a claim is better than discovering gaps afterward.