Article Link: http://exchangepress.com/article/does-your-insurance-coverage-fit-your-needs/5014880/
What are the most common mistakes centers make when determining insurance needs?Centers often cut corners to save money in the short term, only to pay more out of pocket in the long term. One common mistake is buying an insufficient amount of property insurance. Say, for example, your building and its contents are worth $1 million and your policy requires that you insure them for at least $800,000 (an 80% coinsurance clause). To lower your premium, you decide to insure for only $500,000, or 50% of your property's replacement cost value (the cost to replace the building and contents with materials of similar kind and quality, before depreciation). If your building burns to the ground, you're responsible for paying $300,000 out of your own pocket.
Another common mistake is to opt out of important coverages because they are more expensive. Center owners sometimes forget that when paying for coverage, such as abuse and molestation liability, you get more than a claims payment - you also get legal expertise to vigorously defend your case, and your reputation, in court.
Amy Burman, Markel Insurance Company
What lines of coverage do you recommend for every center?
First of all you must evaluate your own exposures. I recommend ...