It’s quite common for successful businesses to undergo many changes, particularly growth. When businesses secure property insurance, it indicates that they value assets, such as buildings, business personal property, and equipment. Insured businesses that already have coverage would, naturally, wish to protect additional assets. Once acquired, what should best be an operation’s coverage expectation? What may be required by an insurer? Exactly how does or should additional property be protected when it’s acquired by a business after a commercial property insurance policy has been issued or renewed?

Please click here for more details on how a business disputed how a loss to its newly acquired property was handled by its broker and its insurance company.

Purchasing any form of insurance protection is quite dependent upon defining how and when coverage applies to loss circumstances. The above dispute revolved around the eligibility of property that a business purchased after its property insurance policy was issued. At the time the policy was bought, the apartment complex that was damaged in a loss several months later did not even belong to the insured business.

Insurance policies typically do have a method for handling situations involving “newly acquired property.”

Click here to see how some policy provisions may address newly acquired property. The excerpt is from the Commercial Property Section under P&C Insurance by Gordis, found in Advantage Plus.

The loss described here revolved around a number of problems. The situation was entirely preventable and could have been avoided if persons working for the insurer, the agency and the business had performed their jobs better. Here was a situation where follow up made by any one of the three parties could have resulted in getting an important, additional asset properly insured. So many serious problems can result from minor oversights and poor communication. Every step that can be taken to understand and serve clients well can prevent losses, provide better coverage, and increase income.

Click here to see elements of a questionnaire that explores management attitude and expectations. It’s from the Commercial Lines Risk Evaluation System that is available via Advantage Plus.

Don’t focus on situations described in the loss we described in this In Action. If that is the norm for an insurer, agent, or business, it’s a lost cause. It is far more important to keep in mind that being responsive and proactive with regard to handling clients should become a habit. Regularly reaching out to check the pulse of clients has some important benefits. Regular contact can create opportunities to discover issues that may be corrected, reveal a coverage need and/or just build rapport and keep communication channels open. Being at ease with clients and insurers is key to making sure that critical service errors are avoided. are increasing in number and need greater effort to handle.

Click here for a helpful letter that may be used in keeping contact with a business client or which may be incorporated on your website or included in a newsletter. It is from Building Business Letters which is part of the set of valuable products found in Advantage Plus. Click here for an emarketing article you might want to post on your website or include in a newsletter that can help. It is an agreement for youthful drivers than can control behavior and build stronger, safer habits.