Why do Carriers Provide Additional Coverage Not Requested?

by R&I Consultants

Additional Insurance Coverage Like Chips and SalsaSometimes, insurance is confusing, especially when your carrier is providing additional coverage not requested. Why do they do this?

Generally these additional coverages are included in what is called an enhancement endorsement. Enhancement endorsements are used to provide coverages the industry has deemed to be useful but not always specifically requested. They add some special coverages and increase the limits on your personal insurance and commercial insurance in Atlanta.

As an example, your homeowners policy will generally not include fine arts coverage. You don’t have enough “fine art” to schedule on a fine arts rider, but what you have could easily be covered under a $5,000 limit. This limited coverage is included in the enhancement endorsement, and it is an easier and more cost effective way to cover that exposure.

The same holds true for commercial insurance policies. For example, commercial general liability coverage would be very cumbersome to price and create a standard policy if some of the obscure or industry specific coverages were not automatically included in a broadening endorsement. This is especially true for contracting and manufacturing.

Enhancement endorsements:

•    Are less expensive than purchasing the coverage separately
•    Broaden coverage
•    Provide increased protection

Carriers provide additional coverage not requested because they are trying to do what is best for you by including a basic level of coverage for common exposures that are simply too small to create specific policies. It’s like getting chips and salsa at your favorite Mexican restaurant. You may not need them, you might not even ask for them, but you will get them anyway because it’s just part of the service. Be sure to ask your consultant about what is and is not covered in your standard policy, what enhancement endorsements are available, and confirm that you are getting the broadest necessary coverage for your budget.

By following these tips, you will have the best coverage for you. If you have any other questions, be sure to call Risk & Insurance Consultants at 404-459-5975. You can also follow us on Facebook.

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