The benefit of occurrence coverage is that even if you cancel your policy at some future date, you will still have coverage for events that occurred while the policy was in effect. This is an issue of increasing importance. A number of insurance companies have gone out of business in the past few years. Go to your local library and get a copy of the Best s Guide to Insurance Companies . Look up your insurance company and find the financial rating that it has.
Legal costs are another area to be aware of.
Legal costs can be included within the limits of liability or they can be in addition to the limits of liability. In most cases, in order for your insurance policy to provide you with coverage, you should notify the insurance company as soon as reasonably possible of the problem. If you do actually become involved in a claim or lawsuit, for example, you receive a summons and complaint, before coverage is activated, you must notify the insurance company right away. Always follow up an oral notice in writing . Immediately record the specifics of the claim and the date you received notice of claim.