The Value of Business Risk Insurance
Driving a car full of people you care about and want to protect is like running a business. There are many ways that you, as the driver, are responsible for their well-being. Additionally, just like when driving a personal vehicle, driving a business vehicle can result in an accident. A few examples of the potential “accidents” that employers must be prepared to cover include lawsuits, product recalls, and injuries sustained at work. Commercial risk insurance is the most effective means of protecting against that risk. It is one of the most significant investments you can make for a new business, if not the most significant. It’s a good idea to be familiar with the various types of commercial insurance available so that you can choose the best provider and package for your business’s needs.
Keeping common losses at bay.
Small businesses frequently suffer losses due to theft, property damage, liability, and employee harm. Companies can avoid the kinds of dings that can sweep them under and possibly destroy their operations by having adequate insurance.
Types of Business Commercial Risk Insurance
The three most common types of commercial insurance for businesses are liability, property, and workers’ compensation insurance. What are they up to? Damages caused by third parties are covered by liability insurance. Liability insurance would cover you in the event of a personal injury or property damage at your place of business.
Floods, fires, earthquakes, and other disasters that cause damage to your company are covered by property insurance. However, it covers damage to your business’s physical location as well as rare or unusual catastrophes.
Last but not least, workers might get hurt on the job and need a lot of time off to recover. A worker’s compensation claim would most likely cover their medical expenses and sick time in these circumstances (1). Carrying workers’ compensation insurance (which is required) can help employers cut down on these costs. In addition to reducing significant out-of-pocket expenses, workers’ compensation insurance safeguards businesses by preventing claims of employee negligence.
A word of advice: Work with an insurance agent who has extensive experience in commercial risk coverage. They can talk knowledgeablely about losses that are common in your industry and suggest coverage options that are tailored to your type of business. These are the major commercial risk insurance policies that every company should have before even considering opening their storefront, taking orders online, or hiring an employee. However, there are other specialized coverage types that fall under these more general insurance categories and offer more specific liability protection. Before committing to any policy, be sure to ask a lot of questions and get any information that isn’t clear, like the terms, conditions, or specialized information. Contact your insurance agent as soon as possible if a claim is made against your company so that the investigation can begin as soon as possible (2). Because commercial claims are significantly more complicated than individual claims, you should not attempt to handle them on your own. You are breaking your insurance contract if you do not report a claim.
Last but not least, as your company expands, so will your insurance requirements; Keep in touch with your broker and be ready to review and upgrade your policy to ensure that it continues to meet all of your requirements.