As a business owner, you are constantly at risk of experiencing a devastating loss through no fault of your own.
It doesn’t matter if you work as a plumber, handyman, or general contractor, or if you conduct business from an office such as a mortgage broker, designer, dentist, or lawyer. Even if you operate a building or strip plaza, or you are into manufacturing, auto fleet, commercial auto, or trucking, your business will always face some form of risk.
Commercial business risk insurance is far less expensive than you might think and necessary to provide peace of mind so you can concentrate on what you do best – your business!
Commercial business risk insurance covers five basic areas as outlined below:
- Business Property Insurance
Whether you own or lease your space, commercial property insurance will protect all your assets such as buildings, office contents, computers, inventory, tools, and even contractor’s equipment. You will be protected against any damages caused by insured perils including fire, smoke damage, water escape, explosions, tornados and collapse. Under most mortgage and lease agreements, commercial business property insurance is mandatory.
- Business Crime Insurance
This section of business insurance covers money, securities, and other property against a variety of criminal acts such as employee theft, robbery, forgery, extortion, and computer fraud.
- Business Interruption Insurance
A fire occurs and you are out of business. Now what? Business interruption insurance provides coverage when your business cannot operate due to a covered loss. Fixed expenses such as rent, mortgage, taxes, and employee wages, as well as lost business income will be provided under your interruption insurance policy. There are several forms of coverage designed specifically for different operations. For example, if a contractor’s workshop suffers serious damage by fire the policy will respond by paying for his downtime plus additional expenses necessary to rent a temporary location and to purchase new equipment while the workshop is under repair. The contractor can carry on business as usual.
- Commercial General Liability Business Insurance
With this business risk insurance, you will be provided with insurance coverage for damages and defense against allegations of third party bodily injury or property damage caused by you, your products, an employee, or any of the services you offer. Insurance coverage will also apply to premises or general liability. For instance, if a client were to slip on ice in a parking lot at his lawyer’s office, the law firm’s commercial general liability insurance policy will respond to the action. Another portion of the insurance coverage includes products liability. For example, if a restaurant customer were to bite into a hamburger and break his tooth on a foreign object, the restaurant’s commercial liability insurance policy will respond to the action. Completed operations insurance coverage will be utilized in the event of an accident such as when a person falls and suffers severe back injuries after leaning against a railing and it collapses, even though it was installed by a metal worker. Other areas of general liability business insurance include professional, or errors and omissions insurance. For instance, if an architect requires professional liability to protect them from claims associated with design flaws in a building. Liability claims are growing rapidly and a greater degree of responsibility is being placed on business owners to ensure they have sufficient general liability business insurance coverage.
- Equipment Breakdown Insurance
Although lesser known, equipment breakdown insurance provides extremely valuable coverage and is not automatically included on most basic commercial business risk insurance policies. Equipment breakdown insurance provides some of the broadest protection available including breakdown due to electrical arcing, mechanical breakdown, pressure explosions and centrifugal force. Many of today’s modern businesses have some form of electrical, mechanical, electronic, or pressure equipment in use. Imagine what impact it would have on your business if your computers, telephone system, or even cash registers were to suddenly fail. What if there was a problem with your heating and air-conditioning unit, refrigerator, or electrical panel? Business equipment breakdown insurance protects your business, so you don’t have to absorb the full impact of malfunctioning equipment, equipment replacement, costly repairs or lost income.
The pricing of a commercial business risk insurance package is quite insignificant compared to the protection and coverage you receive and must be considered as a cost of doing business. Payment plans are available to incorporate this essential important aspect into your monthly operating budget.