Business signs tell their customers their name, address, hours of operation and so on. Signs may be simple or complex and many businesses typically use lighted signs. The Sign policy created by Insurance Services Office is available to insure against the loss or destruction of signs, including fluorescent, neon, automatic or mechanical sign. Coverage also extends to lamps. However, fixed, non-lighted signs (such as billboards) are not eligible under a sign policy, even if they are illuminated by separate electric lights.
A policy requires that, in order to be covered, each sign must be specifically described including lettering information, the sign's location and coverage amount (limit). If the business buying the coverage wants to reduce its coverage cost by using a deductible, it has to accept one equal to 5% of the applicable coverage limit.
Example: An insured’s Sign policy has a limit of $10,000 and a 5% deductible applies. Later, the insured files a loss and the insurer determines total damages of $1,329. Because of the deductible and limit, the insured is paid $829 ($1,329 - $500 [10,000 X 5%]).
The policy protects against any risk of tangible damage that is not excluded or limited in the coverage form. Some of the events that could cause loss that is not covered include:
If your business has made a significant investment in its electric signs, be sure that they are properly covered. Our agency can help you make sure of it.