The water treatment industry is undoubtedly among the highly regulated ones due to the nature of the business. The regulation ensuresthe safety of the water supply and safety treatment and disposal of wastewater. As such, the companies in this industry face various potential liabilities that can leave them facing heavy financial loss hence the need for special coverage like excess policy insurance. However, determining the right amount of excess liability insurance can be challenging. Here is how to do it.
Assess the Potential Dangers
You will start by assessing the potential dangers, which involves considering different factors. For starters, you will consider the nature of your operation and the potential risks that come with it, like handling chemicals and managing the wastewater. You will also check historical loss data to identify any trends. While at it, you will also assess the potential dangers of third-party injuries, property damage, and environmental liability. Working with an experienced insurance agent to determine the right amount would be best.
Evaluate your Assets
Determining the right amount of excess liability also calls for asset evaluation with the help of an experienced insurance agent and appraiser. You will consider the value of tangible assets, such as vehicles and machines, which you can get from your financial records. Intellectual property, brand reputation, and customer relationships, which are intangible assets, are also included in the evaluation. You will also evaluate the income of your water business and how it will be affected in the unfortunate event of a loss.
Evaluate Your Coverage Limits
Insurance policies in this industry have coverage limits depending on the needs. Some limits include bodily injury, property damage, and advertising injury in general liability insurance, environmental damage in pollution liability insurance, and property damage in property insurance policy, among others. You will evaluate your current coverage limits to determine the right amount of excess liability insurance to prevent paying for losses in the event of a catastrophe.
Work with an Experienced Insurance Provider
Determining the right value of excess liability insurance requires experienced insurance providers specializing in the water treatment industry. It’d be best to search for providers with a proven track record overan extended period. You will then request quotes and compare different ones to determine if you are getting value for your money. You should work with an insurance broker who knows the right providers to partner with.
Regularly Review Your Coverage
You must regularly review your coverage to determine coverage. This is essential because the risks and your business need change as the business expands or reduces operations. And special coverage likes excess policy insurance changes depending on your needs. Regular reviews will help you assess the changes in assets and business needs, enabling you to adjust accordingly.
Heavily regulated industries like water treatment are done so due to the high risk of events that can lead to loss of life and destruction of properties. As a business owner, you need excess liability insurance to prevent heavy financial loss in the event of any unfortunate occurrence. However, it’s essential to determine the right value to prevent paying out of pocket hence the need to use the information you have read here.
