It happens all the time. When you are researching or renewing your liability insurance you compare the options and make the decisions that seem practical at the time. But, usually those are quiet moments spent at your desk or kitchen table filled with hypothetical questions and abstract equations. Then one day there is an accident. All of a sudden those selections you made jump off the pages they were printed on right into your “real life.” Are you facing $5000 deductible per claim? Will you be the last one standing on the wrong end of a court case? Do you have the protection and legal support to look at the possibility of product recall and headlines squarely in the eye and fight for your business, your reputation, your livelihood? You can. It all starts with knowing what to consider.

Your Premium

We all need insurance that is competitively priced; but it’s important to know what your premium translates into, whatever the cost. A low premium, no matter how appealing, is far too expensive if it doesn’t offer real protection or doesn’t control your costs when claims arise. Are you getting enough bang for your insurance buck? What are you getting? What are you giving up?

Your Deductible

What does the deductible in your policy actually mean to you? Do you know how it works? Many people believe that the deductible is an amount that may be required to pay once per year. However, you pay some deductibles per claim or occurrence. How many times might you have to meet your deductible? Can you afford to do so?

Your Contracts

How much scrutiny has gone into the contracts that you are using? Do you know the issues that matter in your home state? Can you reduce your risk by making sure you have agreements in place that balance liability?

Your Documentation

Most of us believe that if we do the right thing, we will prevail. But, in the inflatable business we need written records of all the safety and quality measures we routinely perform. How long should you keep original documents? Are you missing records you need? How much could you save in time and money by improving your recording process?

Your Response

How should you deal with customers or other parties who claim that you are liable for damage or injury? Whether you believe you are liable or not, establish the best rapport you can with the claimant. You may wish to cover modest expenses, or offer some restitution to demonstrate you are operating in good faith or choose not to do so. In either case, the more you can prove that you are responsive and fair, the less you make yourself a target for hostility and litigation.

by U.B. Alvarez