By: Sheila Raftery Wiggins
Business contracts – like franchise agreements and operational manuals – may require that another entity is listed as an “additional insured” on an insurance policy. Failure to comply may: (i) violate the terms of a contract and (ii) increase your exposure to risk. Minimize risk by: (1) Confirming status as an “additional insured” on your and your business partner’s policies; (2) Include “legal hot topics” covered by the policy by speaking with your broker and lawyers regarding legal trends so you are covered against the “hot topic” lawsuits/claims in your industry; and (3) Read business contracts and operations manuals, which may permit you to change coverage. This insurance coverage “check-up” will help confirm that your insurance will be there for you.