PADI® Dive Centers and Resorts deserve the industry’s highest rated (A++ XV) and most affordable insurance available in the industry. Unfortunately, many business owners don’t take the time to really understand their policies – regardless of the provider. Those who don’t fully consider their business needs can make the wrong choices and end up with sub-par coverage offered by other industry carriers. Take a moment to stay informed and avoid costly mistakes. You’ll thank yourself later!
Here’s a scenario that shows what can happen when a dive center owner did not take advantage of PADI-endorsed Dive Center and Resort Insurance:
“I have been the owner of ABC Dive Shop for five years, and like most dive stores I have never had a claim and never paid much attention to the coverage details of my property policy. Unfortunately one morning our compressor malfunctioned and started a small fire. This fire destroyed $50,000 worth of my property. Due to the coinsurance provision (one of the pesky coverage details I did not pay attention to), our claim payment was significantly less than the amount of the property I lost. Over the last five years my business has been growing, but during the renewal periods I always told my broker to use the same coverage limit for our Business Personal Property. I had a more rental equipment and a larger inventory of retail equipment. I had a coverage limit of $100,000 US, but the replacement cost of all my property was actually $200,000 US. I originally thought I was fully covered (less my $1,000 deductible) because the loss was “only” $50,000 US and I had a $100,000 US coverage limit. However, I quickly learned about the 80 percent coinsurance requirement and how much that was going to cost me. The 80 percent coinsurance requirement meant I was required to have a coverage limit of at least 80 percent ($160,000 US) of my total Business Personal Property replacement cost value. I was only insuring to 50 percent ($100,000 US) of my total property replacement cost value. Because of the coinsurance penalty being assessed, I only received a $30,500 US claim payment instead of the $49,000 US claim payment I expected. Not paying attention to, and not understanding, coinsurance cost me $18,500 US. I will make sure to purchase a property policy without a coinsurance requirement from now on.”
Stay protected and profitable by choosing PADI-endorsed Dive Center and Resort Insurance, which doesn’t have a coinsurance clause. The 2018-2019 policy details and applications will be sent to each PADI Retail and Resort Association Member prior to the renewal deadline of 30 June 2018.