Commercial Property Insurance – Which Type is Right For Your Business?
Business insurance protects your business from possible losses that can significantly affect your daily operations. Typical examples are a major fire that burns down your business’s structure and a big, unexpected physical injury claim which occurs at your children’s day care business. These events can often be extremely expensive.
Business owners who fail to take out enough insurance may be the ones to suffer financially. For example, if a major explosion occurs at your work place, you might have to close your business while repairs are made. This means a loss of income for you and your workers. On top of that, if you do not have the right kind of workers compensation insurance, you will also be responsible for medical and property damage costs that result from the explosion. If the explosion was not your fault, it is likely that your insurance provider will pay for your injured employees and their families, but you may not get the payment you deserve.
Commercial Property Insurance
Business insurance also covers risks like natural disasters such as fires, earthquakes and floods. It covers the risks caused by accidents such as drunk driving, dangerous sexual behavior and violence among others. In order to determine whether a certain policy covers your business, a professional insurance agent can run through the policy’s small print to determine what specific risks are covered and which risks are excluded.
Some businesses have both insurance and land for their operations. Although these two coverage types are usually bought separately, some business insurance policies bundle them together for easier price comparison. When purchasing insurance for your commercial operation, it pays to check the fine print to know exactly what is covered and what isn’t. Exclusions can often lead to extreme expenses when you need them.
Business insurance policies come in two forms: Property insurance and liability insurance. Property insurance coverage protects you against the risk of damage or loss to the physical property of your commercial operation. Some examples include equipment, furniture and inventory. Liability insurance coverage pays if someone is hurt on your property or someone suffers damage to personal property while entering or exiting your business premises. Examples of this might be slips and falls, or damage caused by an insured tenant. Your insurance cost will depend on the value of your commercial operation, the amount of liability coverage you purchase and the risk of your business being sued.
Smaller businesses can buy insurance for liability and property separately. Larger businesses can choose to purchase package policies that cover both aspects of their operations. These are known as BOPs and include both commercial liability and property insurance. Some insurers require a minimum amount of coverage before they’ll insure your business, so be sure to inquire about that before buying.
Purchasing online is the best way to compare insurance quotes. You’ll be presented with a list of quotes from various insurance companies. Then you can contact an agent with questions or make changes to your policy based on the answers you’ve received. Most insurers have an 800 number where you can talk to a live agent to discuss policies and get price comparisons.
When shopping for insurance for your small business, businesses need to be aware of the risks involved. Liability insurance is required by law in many areas. If your business does not have the proper liability insurance, you could be responsible for paying damages to someone else’s property. Business insurance covers more than just property damage, though. Many types of insurance also cover workers’ compensation, medical costs and general damages.
Workers’ compensation insurance is one type of insurance that most small businesses need to purchase. The types of accidents that workers can become injured vary widely. If you employ several people, you need to purchase liability coverage to protect them against accidents on the job. If your business serves customers, you may need to purchase medical coverage or worker’s compensation insurance. In order to determine the best option for your business, consult with a workers’ compensation insurance professional.
Property insurance is another requirement that many local governing bodies have. It covers damage to buildings and structures and protects you against liability that may be imposed on you by tenants, customers or other individuals. For example, if a customer has damage to his or her apartment, but lives in a rented building, a professional liability protection policy may provide compensation for your loss. In order to determine whether you may need this type of insurance, consult with a professional liability lawyer.
Business insurance is one of the most important purchases you can make for your business. Many businesses fail because they choose an option without fully researching the options. When purchasing commercial property insurance, do not rely on an insurance agent to make the decision for you. Consult with a commercial property insurance may provide the knowledge you need to make the right decision.