One of the most basic elements of your insurance policy is your deductible. As you may have different types of coverage to protect the major areas of your business, it’s possible that the deductibles will vary for each policy. Let’s take a look at how some examples of deductibles below.
What Are Deductibles in insurance?
Insurance deductibles are the amount of money that an insured must pay out-of-pocket before insurance coverage kicks in. For example, if you have a $5,000 deductible on your cyber insurance policy and you have a cyber attack or data breach that causes $30,000 worth of damage to your business, you will have to pay the first $5,000 of repair costs yourself and your insurance company will cover the remaining $25,000. Meanwhile, if you have a professional liability policy with a $10,000 deductible, you would pay that amount first, and your policy would cover the rest of the costs.
Customize a program of policies to fit your unique business needs.
Save time with Embroker’s single-destination solution.
Deductibles can vary based on the type of insurance policy, the insurer, and the amount of coverage you purchase. Higher deductibles usually result in lower premiums, so it is important to make sure that you can afford the deductible if you need to make a claim.
Some deductibles are per-incident, which means that you pay the deductible for each separate incident. Other deductibles are per-policy, which means that you will only have to pay the deductible once during the policy period, no matter how many incidents occur.
It is important to understand your policy deductibles before you purchase a policy, so that you know what to expect if you need to make a claim.
Additional Resources Beyond Deductibles
With the complexity of insurance and new terms to know around every corner, Embroker strives to make insurance simple. If you’re looking for more ways to improve your business, check out these deep data dives and must-know industry statistics.
- 106 Must-Know Startup Statistics for 2023
- Top 10 Cybersecurity Threats in 2023
- Licensed, Bonded & Insured: What It Means for Businesses
- Free LLC Tax Calculator + How to File LLC Taxes
- Free Business Mission Statement Generator + Examples
Related Articles
Introducing Embroker’s New Chief Technology Officer, Gene Linetsky
2 min readOn September 14, 2023, we announced Gene Linetsky as our new Chief Technology Officer (CTO). Gene has over 30 years of experience in the computer science industry — founding several technology and startup companies and serving in various executive and technology leadership positions. Most recently, he held the role of CTO of healthcare technology company […]
Insurance for Bookkeepers: An Easy Guide
9 min readInsurance for bookkeepers is much more important than you think. When it comes to the business world, bookkeepers provide a vital service. Whether handling a company’s payroll, paying vendors, creating and maintaining financial records, or reviewing transitions, bookkeepers play a leading role in a business’s success and growth. But the essential services that bookkeepers provide […]