subject: Components of commercial insurance [print this page] Components of commercial insurance
Commercial insurance is the most crucial investment for any business however small it may be. Any business which operates without the insurance is at a great risk. Misfortune strikes without notice and one is at a risk of losing everything in the wake of it. Personal property and money is also at great risk for business men who do not obtain a commercial insurance. It protects the business from unforeseen and unfortunate circumstances caused both by natural and manmade situations. It protects the business against property damage and employer's liability.
It is a risk management solution and depending upon the nature of work and the size of the organization the value of the business assessed and the premium is fixed. Premium is the amount which the business establishment pays for the contractual agreement of coverage in case misfortune visits with the insurance company.
Typical commercial insurance covers many different aspects of probable losses.
Property damage caused due to natural causes like flood, earthquake, demolition or damage caused due to fire or vandalism.
Professional liability or the errors committed by the organization may end up costing money to the business which results in damage to others. The inability to act properly or in time or the action taken is not correct can cause the others losses or damage which has to be compensated by the company. Well selected insurance fills in the compensation.
Sometimes companies incur lot of expenses due to lawsuits and consequent judgments, such general liability is covered by the insurance.
Employer's liability insurance takes care of all the claims of the employees. It is a very important component of the overall coverage provided by the insurance company. It provides coverage for the expenses caused due to injures of the employees while at work and sometimes it includes the health insurance of all its employees under the group insurance. It comes to the rescue of the company for many other claims of the employees in the form of sexual harassment, unfair treatment or termination.
It also provides for ongoing expenses for business which has been temporarily shut down due to some unfortunate event. Any business interruption would result in the loss of the profit which it would have been making is reimbursed by the insurance.
Many times there is a loss of the skilled and valued employee which affects the company. Insurance is designed to compensate for such losses and the compensation is used to employ and train a new person.
Breakdown of machinery is covered under the property damage and the business interruption section of the insurance policy.
With the knowledge of the components of the insurance it is advisable for the business man to study the features of the policy and to obtain business insurance rates from as many companies as possible. There are many insurance companies which are providing coverage for the business. One can search for the best policy at discounted rates from the websites.
Every business which applies for a commercial insurance is not provided with one. The business has to meet certain eligibility standards and the same parameters are considered while fixing the coverage eligibility.
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