Posts Tagged ‘commercial business insurance’
Most business is conducted from a set physical location; be it an office, factory, or retail presence, there is usually a brick and mortar building to put a name onto. With this building there is the need to safeguard the building and the contents within it. Business Property Insurance was created to deal with this very fact. This type of commercial business insurance deals strictly with physical buildings and any other physical assets of the business within it depending on the coverage purchased. Business property insurance is the safety net for when there is severe damage to the physical aspect of the business and allows for continued operation of the business.
What Needs Coverage
Business property insurance should include a broad range of coverage to protect both you and your business from a variety of loss. Your insurance agent or company should include the following into your policy:
Buildings – insurance would be required if you own the building your business occupies, especially if there is a bank loan involved. If you lease the building, then the landlord would provide for the business property insurance.
Business personal property – this portion of the insurance would cover what is inside the building such as office furniture, equipment, any machinery or any other stationary furnishings used by the business. If you lease the building, this should also include any improvements made to the building such as wall dividers or counter space added on.
Loss of Income – this part of the policy would provide assistance to ensure that bills are paid and services are not disrupted by damage to the building or its contents from such things as fires or anything which destroys part of the building.
Earthquake or Flooding – depending on the location of the business this piece of insurance can be very helpful in the event of natural disaster if it is available in your area.
Other Minor Areas To Include
There is a business property insurance policy known as an “all-risk” policy which can be structured to cover other miscellaneous items such as:
Computer hardware and software
Files and records
All equipment
Failure to include as much as possible into your business property insurance policy could result in losses that you are not otherwise able to cover. This is why many insurance agents will attempt to structure the broadest range of coverage in your business property insurance policy. The premiums you pay now will be worth the cost of possibly saving the business later.
Property insurance should include a broad form of coverage to protect you from a wide variety of losses. Your insurance should include
Buildings: Coverage would be required here if you own the building your business occupies. In the event you lease premises, your landlord should provide this coverage.
Business personal property includes your tables, desks, chairs and equipment. Also, you will want to include the tenant’s improvements you might make to leased premises. An example would be a room divider you add, or a display case, or a custom built counter that forms part of reception area for your clients.
Loss of Income
Earthquake
Flood (which may or may not be available)
Keep in mind that an all-risk policy can be structured to cover all of your equipment, including computer hardware and software, plus your valuable records. A properly written policy will include loss of income that might result from breakdowns, as well as loss of income from other hazards that would temporarily close down your business.
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Business owners all know that starting up a business takes many things; one of these is commercial insurance. Business start-ups usually have a hard time trying to determine the amount or type of commercial insurance their business needs. Commercial business insurance can give you needed protection against theft, property damages, liability, business interruption, injuries at the business, and other items. Failing to secure enough commercial insurance causes business failure.
Different Types Of Insurance
There are three most common types of commercial insurance for business. These are property, liabililty and workers’ compensation insurance.
Property Insurance
This type of commercial business insurance covers losses due to damage of real property. Examples of this would be fire, flood, and machinery destruction.There are different forms of this type of commercial insurance for business.
Mechanical breakdown coverage – often labeled “equipment breakdown coverage”, this type will usually cover losses from the accidental breakdown of boilers, machinery, and other equipment. This coverage is good for computers.
Debris removal coverage – this type of coverage deals with removal of debris after a disaster such as fire, flood or windstorm. This is the insurance that allows you to remove the remains of the old structure before building the new.
Builder’s risk insurance – this is what covers the building while being constructed. In case of a building collapsing during construction this insurance kicks in.
Glass insurance – this is most used by retail business and covers the glass windows of the building.
Inland marine insurance – this is the insurance which covers property which is in transit or other persons property while on your premises.
Business interruption insurance – this is what covers lost income and expenses which result from property damages or loss. This is the insurance that covers salaries, taxes, rent and net profit for the time the business is closed.
Tenant’s insurance – most often used in conjunction with commercial leases which covers the damages to improvements you have made to the rental space.
Fidelity bonds – this insurance is used to cover losses from a bonded employee’s theft of property or money.
Liability Insurance
Liability insurance is commercial business insurance covering injuries that you cause to third parties. If you are sued for personal injuries or property damage, the costs of the legal actions and work would be covered by this insurance. More specialized liability insurance is listed below.
Errors and Omissions – this insurance covers accidental mistakes or failures which cause injury to third parties. An example would be someone failing to file proper forms or applications completely or not on time.
Malpractice insurance – this type of insurance is most commonly used by doctors, attorneys, accountants, architects and other professionals. It is used when a third party suffers injuries from someone whose conduct falls below the professional standard of their field.
Automobile insurance – this covers all of the vehicles which are owned and used by your business.
Directors’ and Officer’s Insurance – this insurance is most used by corporations and nonprofits to cover the cost of legal action taken against their directors or officers.
Workers Compensation Insurance
This type of commercial business insurance is also listed as commercial disability insurance. This is the insurance which is used to cover employee injuries on the job. Workers Compensation is usually required by state law for any business with employees.
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