What Type of Commercial Insurance Do You Need?
November 11th, 2009
As a business owner, you invested a sum of money to put up your establishment, and you will do everything to make sure that your money is safe. Accidents can happen. However careful you may be, there are unforeseen events that will happen and while none of these can be foretold, being prepared is your only weapon.
Commercial Insurance is a businessman’s weapon against failure. It is a safety net that cushions the fall – and if you are getting into a business, you should no longer think of the cost, but the impending consequence that follows if you try to skip the acquisition of such.
What type of commercial insurance do you need? What kind of protection will guarantee your safety? See if you need any of these:
1. Property Insurance – This type of insurance makes sure that you are covered, should you lose your business either to theft, fire, or other natural causes. There is so much that could happen and you may not have any control over the occurrences, so consider the importance of getting one. More so, there are specific additions that you can include in your insurance policy and they are the following:
a. Builder’s Risk Insurance – even while still under construction, a business can be protected and with this type of insurance, should there be any losses during construction, you are safe.
b. Business Interruption Insurance – there are many reasons why a business may be unable to operate. Sometimes it may be due to an accident or a calamity. Should this happen and you have no choice but to close down your business for some time, business interruption insurance makes sure you are reimbursed for payments you made for rent, salaries, taxes or any other monthly expenses.
c. Debris Removal Insurance – Property insurance may cover costs for rebuilding your business, but not the removal of debris after a fire or any other calamity. This insurance covers you for such needs.
d. Inland Marine Insurance – This insurance covers your business should any damage happen to other people’s property that is in your premises. Since you are liable for that, with this insurance you are protected.
e. Ordinance or Law Insurance – This covers you should there be a need to rebuild or repair your property that, under law or ordinance, is due for rebuilding due to calamity or timely reconstruction.
f. Tenant’s Insurance – This insurance covers any damages your renovation to a rented space may have made, or any other damage your employees caused.
g. Glass Insurance – This covers expenses for any broken windows in your property
h. Boiler and Machinery Insurance – This is often known as “mechanical or equipment breakdown”; this insurance covers any expenses or losses due to a malfunction in any of your equipment that deems your business unfit to operate.
i. Crime Insurance – This insurance covers you for any damage caused by theft, robbery or burglary from inside or outside parties.
2. Workers’ Compensation Insurance – This type of insurance covers any expenses you may need to make, should employees get into an accident while performing their job. This not only saves you a lot of money, but it will also ensure you are lawsuit-free from disgruntled employees because providing them with this type of compensation will make them feel valued.
3. Liability Insurance – This type of insurance protects you from people who might want to bring damage to you and your business. Should someone sue you for damage or injury, if you have this provision, you are covered for all the costs of defending your case. As this is very broad, here are more specific provisions that you may be interested in acquiring:
a. Automobile Insurance – This insurance protects you should the vehicles used for your business be damaged or stolen, or even if it is involved in an accident and unfortunately injured a person.
b. Directors’ and Officers’ Liability Insurance – This protects directors and officers from any lawsuits against them
c. Malpractice Insurance – This insurance protects professionals from any malpractice lawsuit against them.
d. Errors and Omissions Insurance – This insurance protects a company from lawsuit from erroneous acts committed to a third party.
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