When you’re deciding which type of commercial insurance to get, it’s important to do your due diligence. When you think about it, this kind of insurance is a safety net that protects your business in case of legal issues and/or unexpected events, therefore it is something you can’t do without. Today we will give you some tips on what to look for in commercial insurance protection.
Commercial Liability Insurance – The Largest Portion of Your Insurance
Liability insurance helps protect you from the high costs of:
- Property damage
- Fire damage
- Actual and alleged physical damage
- Medical payments
- Employee injuries
- Customer injuries that occur on your businesses premises
- Customer injuries that occur as a result of your product
- Copyright infringement, slander, libel, and misleading advertising
- Damage as the result of negligence on your behalf or on the behalf of your employees
- Legal fees
- Court costs
- Settlement costs
Things to Consider About Liability Insurance
- Who is Covered: Make sure you know what your policy covers. Most general liability policies depend on the type of business. For example, a sole proprietorship – both spouses should be covered.
- Policy Limits: This refers to the total amount that a policy will pay out for a claim. Make sure that your liability policy limits are high enough based on the risk for your business.
- Are Subcontractors Covered? They aren’t always covered by commercial insurance. Make sure you discuss your needs with your commercial insurance professional to make your contractors are covered.
Commercial Vehicle Insurance
You want to have insurance coverage for all of your company vehicles. If you have several vehicles that you use for work, consider fleet insurance.
Commercial Property Insurance
Another thing to look for in commercial insurance is coverage for equipment, inventory, machinery and property. You could also include tools in this category that are used on and off your property (for example, if you have service technicians who do house calls). Their tools may not be covered under your commercial vehicle insurance policy.
If you run a daycare or a high-end restaurant, you may want to look into specialty flooring, landscape, signage, or lighting insurance.
Business Interruption Insurance
This type of insurance covers your fixed expenses such as payroll and replaces lost revenue if your business has to close due to an event, or property damage that makes business operation impossible. If you were to have a flood that would be horrible, but if you had to close down temporarily and didn’t have this insurance you may not be able to financially recover.
We encourage you to take the time to research, and discuss with your insurance provider every aspect of your insurance policy. The last thing you want is to be under insured.