Can Your Business Afford A Blow?
Is your business safe? What if your assets or costly equipment are damaged - will you be able to replace them
, or will you have to eventually quit your business? If your pivotal employee is lost, then can your business afford to hire, and train a new employee? If the answer to all the above questions is no, then Commercial or Business Insurance is the thing for you!Insurance is a risk management technique; it transfers the risk from the owner to the insurer. There are different types of insurances to cater to different kind of risks, and at various levels for instance, personal insurance, commercial insurance, etc.
Commercial insurance is to protect a business from potential losses by unfortunate, or unanticipated, events; thus the losses are transferred to another entity, so that at the time of need loss can be recovered, if not completely then at least to some extent. It seems to be trivial, but in fact it is a vital investment from a business point of view, to shield its operations or assets.
Running a business without an insurance policy is treacherous, as one might lose not only the money and assets of the business, but also personal assets, while covering losses as a result of an incident. Commercial insurance firstly depends upon the kind of business, and the potential losses. Some of the types of commercial insurances are as follows:
Property Insurance
It includes payment of losses, and damage to permanent assets like real estate, or equipment. Different kinds of property insurances are boiler and machinery insurance, debris removal insurance, risk insurance for builders, glass insurance, inland marine insurance, business interruption insurance, ordinance or law insurance, insurance for tenants, crime insurance, fidelity bonds, etc.
Liability Insurance
This covers losses caused by the business to their clients; for instance if a client does not have their items delivered on time, and the third party sues your business, then the defense costs of the suit are covered by it. Some types of liability insurances are errors and omissions insurance, malpractice insurance, automobile insurance, liability insurance of directors and officers, etc.
Compensation Insurance For Workers
This is simply the health insurance of an employee, as the employees can sue management for negligence during the course of their employment.
Business Interruption Insurance
This is used when the business shuts down temporarily, due to unanticipated events such as strikes, and reimburses all the expenses, and the profits that would have been earned during the shutdown time.
Key Person Life Insurance
When a valuable employee is lost by the organisation, proceeds from this kind of insurance are used for hiring, and training personnel for the respective post. When selecting commercial insurance, one should select a licensed and a knowledgeable agent, who would accommodate your business on expansion. A reputation is required as insurance companies have underwriting standards to check the eligibility, as the insurance must fall into a certain category offered by the company.
For acquiring insurance, one must have a good reputation to be eligible. Furthermore, critical assets coverage requires premiums to be covered under insurance.
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