Page 32 - EDM Today Spring 2025

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SIGNED, SEALED, DENIED:

AVOIDING THE PITFALLS OF BUSINESS INSURANCE

You sleep soundly at night,
comforted by the peace of mind
that comes with having business
insurance. You have a trusted agent,
a signed policy, and confi dence that
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you’re protected—until the claim
is denied. Are you doing your due
diligence, or just assuming your
coverage is what you need it to be?

Every year, businesses lose mil-
lions of dollars because insurance
claims are denied. This can happen
because a claim doesn’t fall under
the policy or perhaps because the
coverage just isn’t enough to cover
the actual loss.
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There are a number of reasons why these discrepancies occur. A business owner may have not purchased the
necessary amount of insurance or missed some important exclusions in the fi ne print. The failure to fully explain
what the company does or the failure to appreciate the risks their company faces may also impact coverage.
These details can come back to haunt you when you need to fi le a claim.

In this article, we’re taking a look at where these breakdowns usually happen—and more importantly, what small
businesses can do to stay ahead of them. A little clarity now can save a lot of stress (and money) down the road.

For help with these issues, EDM Today reached out to Christine Anto, a partner at Amundsen Davis whose practice
is focused on insurance coverage and risk management, for some practical considerations.

ET: Should my carrier provide me a copy of the policy when I purchase
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the insurance?
CA: You should always receive a full and complete copy of your policy after
purchasing it. Usually, it is sent out by the carrier within a couple of weeks of the
purchase or inception. You should always take a look at the policy documents
provided to ensure they include what you intended. Policies generally consist of
Declarations, Coverage Forms, and Endorsements. Special focus should be given to
the Declarations, which will show the coverage(s) purchased and the applicable
policy limit(s). However, you should also take a look at the coverage terms and pro-
visions, especially the exclusions, to be aware of what the policy covers and doesn’t
cover. If there is a discrepancy, it should be brought to the attention of the carrier and
any insurance broker or agent. In many states, it is the burden of the policyholder to
point out any mistake on the policy – policyholders are expected to know what they
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Christine Anto
are buying. If you do not receive a copy of your policy, you can always request one
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