What is the standard deductible under a businessowners policy?

What is the standard deductible under a businessowners policy?

• A. $250
• B. $500
• C. $1,000
• D. $2,500

Answer: (B)

The standard deductible under a businessowners policy typically is set at $500. This amount serves as a baseline deductible in many insurance policies designed for small to medium-sized businesses, providing coverage for various risks that the business may face, such as property damage or liability claims. The purpose of a deductible is to share the risk between the insurer and the insured. By having a $500 deductible, businesses can affordably manage out-of-pocket expenses while still receiving valuable coverage. Higher deductibles may be chosen by businesses for lower premiums, but the standard reflects a manageable cost for most small business operations.

The standard deductible under a businessowners policy typically is set at $500. This amount serves as a baseline deductible in many insurance policies designed for small to medium-sized businesses, providing coverage for various risks that the business may face, such as property damage or liability claims.

The purpose of a deductible is to share the risk between the insurer and the insured. By having a $500 deductible, businesses can affordably manage out-of-pocket expenses while still receiving valuable coverage. Higher deductibles may be chosen by businesses for lower premiums, but the standard reflects a manageable cost for most small business operations.