Does your prospect need Sign coverage? It may take a little digging to find whether current policy covers it. Understanding details of sign coverage enables an agent to point out a gap to a prospect, and to solve the problem in one conversation.

Is your prospect’s sign covered? For some businesses, that might be a small concern. A painted plywood sign over the front door could be negligible. But the cost of a monument sign can easily top $50,000, depending on construction materials, electronics, decoration. The cost of a pylon or so-called freeway sign can exceed $200,000.

Hardly minimal expenses for most businesses. Does the prospect think the signs are covered? The BOP specifically excludes signs, and the CPP form limits coverage. The CPP form grants a limit of $2,500 per sign, whether or not attached to a building, but does not increase the Property limit on the dec.

The BOP form provides two exceptions to the exclusion. For signs that are attached to the building, the limit is $1,000. For signs that are not attached to, but are within 100 feet of a building, a limit of $2,500 is granted for just five perils: fire, lightning, explosion, riot or civil commotion, and aircraft. The limit is shared with other Outdoor Property.

Clearly these perils leave much to be desired. Other perils likely to damage a sign include wind, automobile, wind – but there is no coverage for that damage.

The gap can be closed in a few ways, depending on your underwriter’s preference. The coverage can found similar to what is done for fences (see post here. All solutions call for additional premium: