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... insurance, the goal is to have all-risk protection rather than named perils' coverage. The latter covers such perils as fire, windstorm, and explosion, and can create a false sense of security because it covers most recognized perils. However, insurance is meant to protect against catastrophes however they may arise, and old-timers in the business can recall any number of strange events that caused large losses. For instance, are you protected against damage from flowing molasses after a huge storage tank ruptures? This type of loss has occurred, causing tremendous damage. The point is simple: Even with a vivid imagination, you can't conceive of all the things that can go wrong. All-Risks protection is therefore essential to proper insurance coverage. With respect to property, this is usually written in a Difference-in-Conditions (DIC) policy. The liability equivalent of the DIC is the Umbrella-probably the most important single policy of all. It supplies the needed high limits and broad coverage for the blockbuster liability claim. Be sure it's the broadest possible. Pay a little more if necessary, but don't settle for an inferior Umbrella. Insurance Companies and Their Environment The insurance world is fragmented into many compartments, some of interest and some of no concern to the risk manager. One division that should be of no concern (but which has received inordinate attention) is whether an insurer is a stock company, mutual company, or reciprocal. The form of corporate organization is irrelevant to the buyer. Whether a policy is assessable is important, but major insurers don't issue assessable policies, regardless of their form of management. ...

...dule. This should be performed periodically. Breadth of Coverage When pl...written in a Difference-in-Conditions (DIC) policy. The liability equivalent of the DIC is the Umbrella-probably the most i...