subject: Commercial Business Insurance For Dummies [print this page] Businesses both big and small have seen their profits take a beating during the last year because of the financial crisis. This of course means that it's become even more challenging to run a business efficiently, because it's during times such as these that business owners are required to make decisions which could make or break their business.
Added to that is the fact that most businesses have had no option but to cut back wherever possible, at least until such time that things start picking up again.Less profit means less capital, and the less capital you have, the more vulnerable you are should anything go wrong. So, considering you now have to count every penny you spend on your business, where do you start cutting back. Unfortunately for some, their business insurance is one of the first things to suffer, but is it really the wise thing to do?
Let's just say you down-graded your businesses insurance in order to save on your premiums. In this case your insurance company would still pay you out if you ended up being on the receiving end of a disaster, but would you receive enough compensation so as to be able to pick up all the pieces? Perhaps a fire breaks out and partially destroys your business premises, together with the vast majority of your stock. Is your level of cover suitable enough? Remember, even though your business premises may have fire alarms and automatic sprinkler system, that's not to say there won't be a fire. To make matters even worse, you'll also be affected by water damage.
When we read about these things, we tend to think only in terms of immediate damage, and yet the losses extend beyond that. Even if you are financially capable of paying for all the repairs and other losses, you'll also suffer from loss of earnings until such time all the repairs have been carried out.
In a worst case scenario, there may have been a number of employees on the premises when disaster struck. Did they all manage to escape safely, or were one or two of them injured? If anyone was injured on the premises, then as the business owner, you will be held liable, and as you no doubt already know, such claims can run into millions of pounds. Are you starting to see why commercial business insurance is so crucial, and why it's not something any business own should skimp on?
The truth is there really is no reason to skimp in the first place, because as long as you're willing to shop around for cover, affordable cover is easy to obtain. Yes, you may have to make a few small changes here and there in order to qualify for reduced rates, but when one considers just how much is at stake, it's something which certainly deserves your undivided attention.
Simply put, if you don't have business insurance, and disaster does strike, your business will more than likely be gone for good. On the other hand, if you have adequate cover in place, your business will be able to survive practically any disaster which comes along.
by: Tom Jones
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