Deductibles are the amount of money you have to pay out of pocket every time you file a claim. Once your deductible is met, your insurance coverage takes over. Deductibles are viewed as a way for insurers to share risks with their customers. Deductibles can help keep your insurance costs affordable while reducing the number of small claims that insurance companies have to deal with.
How Do Deductibles Impact General Insurance Policies
While researching general liability insurance in North Carolina, keep in mind that deductibles are a key part of several different types of policies, including commercial property insurance, commercial auto insurance, cyber liability coverage, and business owner’s policies. These policies are all designed to prevent you from losing your assets if a liability claim arises. Regardless of the policy that you choose, you will have to figure out what deductibles make sense. You can set your deductible to zero, but you’ll have to pay a much higher premium if you file a claim.
How Insurance Deductibles Function
Whenever you suffer a loss, such as property damage, or if someone suffers an injury, contact an insurance adjuster. An adjuster will analyze the claim and do a thorough analysis to determine how much it will cost to repair the damages. If your deductible is $400 and the adjuster estimates the damage at $3,000, you will have to cover the initial $400, and then your insurer will pay the remaining balance.
How Your Deductible Is Determined
You will have to consult with your insurance company before deciding on a deductible amount. Some insurance policies allow insurance companies to set a minimum deductible, and then you will be able to choose if you would like to add a higher deductible. The higher your deductible is, the lower your premium will be. Take some time to figure out the amount of risk you are willing to assume.
In some cases, an insurance policy may have multiple types of deductibles included. Generally, multiple deductibles are added to commercial insurance policies. Flat deductibles apply a specific dollar amount to each claim. The policy may also include a waiting period deductible that refers to a particular period of time that your business is shut down wherein you receive reimbursement through business interruption coverage. A percentage deductible assesses the total value of the property. You are reimbursed if the property suffers serious damage.
Consult with Pittman Insurance Group, LLC
General liability insurance can prevent you from losing everything if a disaster arises. Take some time to assess your situation before making a decision. Find a deductible amount that you are comfortable with. The experts here at Pittman Insurance Group, LLC will guide you through the process to ensure that you have the right policy.