How to read a commercial insurance policy? The way to start reading the commercial insurance policy is to get the rightful copy of the policy first. This would mean a certified copy from the carrier. You can also confirm that the copy you have is accurate by comparing the form number and the endorsements lined up on the copy’s declaration page with the number and content of the pages of the insurance policy.
From the form numbers, you may be able to find the edits and their dates. These dates should also be compared to what you have on the actual pages of the policy, to make sure they match. The edition dates you have on the form numbers on the declaration page should also be compared to the actual dates of the policy. If these do not match, you do not have the accurate copy.
Every commercial insurance copy will come with some basic parts, and it will be easier for you to read the policy when you read according to these parts. They include the declaration, the conditions, the perils that are insured against, and the exclusions, in that order. You might also check out our insurance terms and defintions guide to look up unfamiliar terms.
Start with the declarations, which is always the first chapter. Here, you should search for who is insured by the commercial policy, the risks covered, the limits of the policy and the dates of coverage. You will also see the insurance firm’s full identity, and then the form numbers and endorsements.
To know who the people or persons that qualify as part of the insured by the policy, look at the declaration page or in the coverage form. You will see a section that is titled ‘Who Is Insured’. Make sure that the right parties are insured so that you are getting coverage that actually works for who and what you need it to. There may also be some additional insured parties, but these may also appear at the endorsements section.