When picking the right insurance coverage for your business, it is important that you take time to think about the options that are available to you. While many people know that they need to select a policy based on the exact risks that they are likely to face in the future, most don’t think about the other options that can be beneficial in specific circumstances. For example, hammer clauses can sometimes prove to be advantageous for those in particular arrangements. Learn more and see if this option is right for you.
The Hammer Clause Basics
The main thing to understand about hammer clause insurance is what it exactly entails. Essentially, a clause like this is inserted into an insurance policy as a way of protecting the insurer. The entity that offers insurance can force the policyholder to settle a claim without the policyholder’s approval. Though it might seem like a bad move, there are niche situations where it can be useful for a business owner. If you need advice and don’t have the experience, this clause helps the insurer make the calls for you. Other options to consider include:
- Commercial auto coverage
- Workers’ compensation
- Industry-specific policy options
Selecting the Right Fit
The best way to understand the options available to you with insurance is by reviewing the ins and outs of your industry and seeing what makes the most sense. Learn more about hammer clauses and see if it is a fit that makes sense for your long-term goals.