by Ron Rothenberger
Last month I talked about preparing your business for a loss in income: what types of loss do you need coverage for and what coverage is available.
Another way you could have your policy written is on an Actual Loss Sustained (ALS) basis. With an ALS, there is no limit shown in the declarations, but that doesn’t mean an unlimited source of payment for your available loss. You must be able to prove the amount of your loss and the amount that is proven is what is paid.
Some polices are written on a monthly limit basis for up to six months. You choose a monthly limit when purchasing your policy. How does this work? If, for example, you have a 6-month limit of $72,000, your monthly limit for those six months will be $12,000. This limit may be paid more quickly than the ALS coverage mentioned above due to the fact that your insurance carrier can see what you are losing on a monthly basis and has a limit to pay for each month. Once the total policy limit has been reached, the payments will cease.
ALS policies usually have a deductible of 24 to 72 hours; in most cases it is 72 hours. What this means is your loss will not be paid for the first three days your business is down. If you’re still down after the three days, that is when your coverage will begin.
Do you have more questions about Actual Loss Sustained? Give me a call! I will be happy to help with any of your questions and help you set up the policy that is right for your company.
Rothenberger Insurance Services is a full-service insurance company that specializes in all personal and commercial insurance services. We are located in West Reading and help many individuals and businesses in and around West Lawn, Wyomissing and Reading.
Share this article:
