06 December 2021 - 15:22Don't fail to identify the risks that could put you out of business when applying for commercial insurance. Pictures: 123RF/rawpixel
With that in mind, here are three of the most frequent reasons a commercial insurance claim may be repudiated or not paid out adequately:The types of risks a business owner faces may vary enormously depending on the industry they operate in. There may also be hidden risks you may not think of when taking out insurance.
“Consider, for example, a building owner who has business tenants. At the time of taking out cover, the details of the tenants were declared to the insurer who assessed the risk as being acceptable for the premium charged. Over the period of the year, there is a change in tenants, where the new tenant may be considered a higher risk. By not declaring any changes during the period of insurance, any claims — such as damages from a fire to the building — may be rejected.