Insurance fundamentals · 2 min read

Five questions to ask before choosing a policy

Premium is one part of an insurance decision. The scope of coverage, the costs you retain and your obligations under the policy deserve equal attention.

1. Which events are covered?

Ask your advisor to explain what activates coverage. Use a realistic example from your business or personal life to understand how the policy wording would apply.

2. What is excluded?

Identify the exclusions most relevant to your circumstances. Discuss whether a gap can be addressed through different terms, additional coverage or changes to how you manage the risk.

3. What costs would you retain?

Review the deductible alongside the premium. Consider whether you could meet that amount at the same time as other expenses caused by a loss.

4. How do the limits work?

Ask whether a limit applies per event or across the policy period. Check for lower limits on particular types of loss.

5. What are your responsibilities?

Confirm any information, safeguards, records or notification steps the policy requires. Keep a written record of the answers with your documents.

This guide is general information, not individual insurance advice. Policy wording and local requirements vary. Discuss your circumstances with a qualified advisor.