What is commercial business Insurance?
Whether you have a small business or a multi billion dollar operation, protecting your business from unforeseen circumstances is the first step to maintaining a healthy risk management balance. Accidents do happen and it is therefore important for every business owner to think ahead and verify that all aspects of the business are properly insured. Each kind of business will need an individual set of insurance policies depending on the products being sold or services being rendered. For instance, selling directly to consumers involves one type of risk, while wholesalers that distribute and ship across the country or over oceans have a completely different set of risks involved. A Commercial Package Policy (CPP) is an insurance policy that is specifically designed to include most coverage needed for one particular industry. This is also sometimes referred to as a Business Owners’ Policy (BOP). The package is comprised of various insurance coverages that fit a specific business structure. In a typical package there might be property coverage, business interruption coverage, crime coverage, liability coverage, and commercial auto coverage. Some package policies might include cargo insurance, ocean marine, inland marine, or aviation insurance. Additional policies such as Workers Compensation, Disability, and Group Health Insurance, will be available for purchase as required in your state.
Why does every business need insurance?
Business insurance enables a business corporation to convey the risk of a loss to the insurance company. By paying a moderately small annual premium to an insurance carrier, the business can be protected against the possibility of sustaining a large financial loss. All businesses whether they operate on owned territory or leased property, need to be insured against open perils and named perils such as fire, theft, legal liability, accidents, and the death or disability of key employees. Protecting against these disasters is essential for small and mid-size businesses as well. A typical small business has the life savings of the owner or owners tied up in the business, and it is therefore critical to protect all aspects of the business from financial devastation.
What insurance coverages are needed?
In order to identify exactly which coverages are needed for a specific situation, first pinpoint the risks involved in the operation. Insuring the property and contents which would include stock, from perils such as fire, theft or any other types of damage is a part of almost any package. Business Liability or Commercial General Liability (CGL) is another aspect of a package that is a must for all businesses. Liability insurance protects the company in the case that it is sued for negligence or held legally liable for loss or injury caused by an error made by the company. Liability insurance protects third parties who may be on your property and often excludes the owners and employees. Employees that are injured would be covered by the Workers Compensation Insurance Policy, while liability covers any legal claims from the outside. Business Interruption or Business Income (BI Coverage) is another category of coverage that should be covered in a commercial package policy. While property insurance will protect against physical damage to your business, it will not cover the indirect causes of loss. When a business suffers property damage due to a fire or flood, it may be forced to shut down for a while or move to a temporary location. Business interruption insurance will pay you for expenses incurred while your business has some down-time. Typical BI will provide for Extra Expense, in addition to Loss of Income and/or Rent Loss.
Where to get commercial business insurance?
The experienced staff and insurance professionals at P&G Brokers have years of experience putting together "Commercial Business Insurance Policies". We have extensive knowledge of the many business requirements from the most complicated Commercial Insurance Policies to the small Business Owners’ Policies. Speak to an expert today to be covered tomorrow.
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