Most business owners insure their buildings and personal property under a commercial property policy. Unfortunately, they don’t always walk away with adequate limits or even understand what the limits of their own policy are. Some categories of business insurance on Long Island, NY will have a maximum dollar limit that the insurer will pay a policyholder in case of damage or loss.
Commercial Insurance Limits
The limits on your business insurance policy is the maximum amount of money an insurer will pay toward a covered claim. Generally, the higher your coverage limit, the higher your premium may be. Limits often apply to different types of coverage within a policy. For example, a business owner has a $2,500 limit for all of the outdoor property they own, with a $500 limit per single item.
You can choose to increase your limits on many of the coverages in your policy, and you can add other coverages to suit your business needs. The amount of insurance that you need depends on the type of business you have, the level of risk you anticipate, what you can afford to pay in premiums, and how much you can pay if your limits are exhausted by a single incident. High-risk environments and industries are usually better suited to higher minimum liability insurance risks.
Understanding your specific policy’s coverage limit definitions is important to ensure your business and finances are well protected. When you’re ready to find reliable insurance for your business, the team at Premier Risk Insurance are here to help! We serve Long Island and neighboring cities in New York – Contact us to get started today.