The Unforeseen is Seen

shutterstock_157311497“You buy insurance for that unforeseen loss” is a statement that we have heard often over the years to describe why insurance is needed. Realistically though, types of losses that can happen to clients are actually seen, and often expected, by insurance companies and agents.  It is when the loss will happen, and to whom, that is actually the unforeseen elements of insurance coverage.

Insurance carriers actually foresee the types of losses that they expect to pay by type of coverage form offered. For example, on property forms, they are called covered causes of loss such as fire, windstorm and theft.  On automobile physical damage losses, the foreseen losses are called comprehensive and collision.

On property insurance under construction, called builders risk, agents and carriers can tell you that 30% of all builders risk losses are caused by water damage such as flood, backup of sewer or broken water pipes. Agents and carriers can see or predict that these types of losses can, and will, happen in the future to property under construction because past experience can be a great predictor of future event types in some types of insurance losses.

Insurance agents and the carriers that they represent can even foresee types of losses that can happen to clients by the class of business the customer operates. For example, an ice cream shop or restaurant can incur a loss from food spoilage caused by a power failure.  This type of loss is foreseen, or predicted, by the carrier and coverage is available to be purchased prior to the loss. What isn’t known or foreseen is when a storm can come through your area and knock out power causing a spoilage loss.

Agents and insurance companies can help insureds with information about the types of foreseen losses by policy type, industry class of business or both. Their expertise gained from past losses can help clients foresee future potential losses and purchase the right coverage to protect the business.

Have a talk with one of our experienced commercial insurance agents about types of losses they foresee your business potentially experiencing.  They can help structure affordable coverage to give you coverage for the type of losses you can incur.  When the unforeseen event of a loss happens to you, at least the foreseen type of loss will be covered after the event.  Let us help you manage through the unexpected loss with expected loss coverage by visiting AssuredPartners NL Property & Casualty.

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