Insurance can be a valuable asset for any business. What is crucial about that insurance is that it be of the right kind and that the coverage is well and clearly understood by the company principals and the underwriter. An audit of the insurance coverage often reveals that the limit of understanding by company principals is, “We carry the required amount.” That is all well and good, but required by whom, and if it is an industry standard it will often be insufficient for many foreseeable situations.
An audit of the insurance types and limits can provide an information about whether or not the carrier will cover a problem and under what circumstances they may deny a claim. In addition, the company can then see if there is redundant coverage or if additional insurance coverage is needed.