There are a number of significant decisions that must be made by a new business owner. None may be as important as the decision to take out a commercial insurance policy. These policies are vital to the protection and overall success of the business. However, the term business insurance is a broad description and encompasses several specific types of policies. Therefore, it is important to understand the various plans available and the protection provided by each one.
Property insurance refers to a commercial policy that protects the location and/or contents of the business. For instance, if a business owner is operating from home or rental property, then this type of plan should be put in place to protect the contents. If the property is owned by the business operator, then the policy would cover the contents as well as the structure itself. These plans also insure the property of others that may be in the location. Several additions can be included to insure against specific disasters as well, such as fire, flooding or tornadoes.
Another important form of commercial insurance is a liability policy. These policies protect a business when liabilities are legally imposed due to the negligence of employees or the company itself. Basically, it protects the business from being sued. There are various liability plans that can cover everything from harassment to the poor performance of stocks.
Commercial auto insurance is a must when operations involve the use of automobiles. This plan should not be mistaken for a regular automobile policy. Commercial auto policies cover any damage that may be done to others while using a business automobile. Actual coverage for the company vehicles must be provided within a regular car insurance policy.
There are several other types of business insurance policies available including health insurance for employees, workers compensation plans as well as life and disability plans. Other plans offer protection in the unfortunate event that a key owner or employee is injured or killed. This policy may provide financial means for the remaining employees or owners to buy out the effected partner’s share. Business interruption insurance covers damages or losses sustained to the profit of a business due to the inability to operate for uncontrollable reasons. A prime example would be if a business is damaged due to lighting and could not be in operation for several days.
As an experienced agent, I can help a business owner decide exactly what commercial insurance plans should be purchased. A business should tailor their policies to their individual needs and be aware of the exclusions and additions that may be necessary. Based on these changes, premiums can fluctuate. Running a business can be a quite unpredictable venture and owners should always be prepared for the worst case scenarios.