Simplifying Insurance Coverage

JOHN DOETZER: We always recommend that you take the time to read the insurance contracts.

The anatomy of an insurance policy can be understood by using the acronym D.I.C.E.: Declarations, Insuring agreement, Conditions, and Exclusions:

    1.    D = Declarations:

On the declarations page that gives you some very specific information about your business and your operations.

    2.    I = Insuring Agreement:

Moving on to the insuring agreement, it discusses what the insurance company is agreeing to insure.

    3.    C = Conditions:

Then you move to the conditions of the policy and that gives you conditions relative to the insurance agreement and conditions that need to be adhered to after a claim occurs

    4.    E = Exclusions:

And then the final one is exclusions. That is specifically what the insurance company is not willing to provide coverage for. This is one of the areas that you need to focus in on and familiarize yourself to make sure that one or more of your operations is not excluded from coverage.

There are also endorsements to policies. Those are special coverages that are bought and special exclusions that an insurance company may add on as a result of you desiring to have coverage with the insurance company desiring to exclude specific coverage under your insurance policy.