1. Every company underestimates its value.
The Insurance Bureau of Canada estimates that 88% of small and medium sized companies are not insured to value. Partial losses to the organization often require the full policy limits.
2. $10 million is the new $5 million.
In the past five years, most small and medium sized companies have increased their $2 million CGL limits to $5 million. And $10 million limits, once reserved for only larger and more complex risks are becoming increasingly common and demanded by most lease agreements.
3. Picking up the pieces is expensive.
A lot of perils can interrupt a business: Fire, water damage, theft, vandalism, even a malicious computer virus. What they all have in common is that the cost to the company can be much more than the loss itself. Interrupting the natural flow of business through an organization is an expensive proposition. Additional costs to find temporary office or plant space, and the computers, telephone lines and rented equipment required to do business adds up quickly, as does the value of the business you lose while you try to get things back to normal.
4. Nothing moves more slowly than a lawyer on a retainer.
While insurance is sold in well-defined blocks of coverage, life doesn't always cooperate. It is natural then that when a claim comes along the loss doesn't always fit neatly into the bailiwick of a single policy.
Trying to determine which insurance coverage should respond to any given loss, and to what extent, has made many lawyers wealthy over the years.
Purchasing a Business Office Package from the same insurer as the specialty coverage places one company in charge of indemnifying your client in the event of a claim. This can speed things up, reduce confusion, and help sanity prevail at the time of a loss.
5. Buying a package policy can result in lower premiums.
Instead of buying separate policies to cover property, casualty, liability, fidelity and business interruption insurance, a package policy can result in lower overall premiums resulting in savings for your client.