Commercial Insurance Explained

Getting adequate commercial insurance or business property insurance can be an aspect of business that is often overlooked. All too many people neglect the importance insurance can play in protecting your business. It is only until your organization suffers a loss that the true importance of commercial liability insurance comes to light. The ease of obtaining a commercial insurance quote can be as easy as logging onto your local insurance carriers website and entering in your companies information. Historically, the two biggest liabilities company owners face are from property or building insurance or general commercial liability coverage.

Business building insurance can offer much protection to the average business owner. The coverage, dependent on it’s specific nature, can give your premise blanket coverage for all perils (a peril is deemed as something that can cause a loss). The two most popular types of coverage are “all risk” and “named peril” policies. In an “all risk” policy your business building or property is covered for literally all risks it may face, unless they are specifically excluded. This means regardless of what caused the loss your policy will respond to indemnify you. Given the broad coverage this type of policy can often be a little more expensive. With a “named peril” policy you only have coverage for the specific perils that are listed in the policy. All other risks are not covered.
Outside of business building insurance most business owners have an array of liability that would need to be addressed. Most often the majority of the exposure can be addressed by a Business Owners Policy (or BOP). These business owners policies often bundle a variety of commercial insurance coverage into a consolidated package policy. Typically, general liability (coverage for slips, trips and falls), automobile liability, employers liability and employee benefits liability are addressed under this consolidated insurance option. The capability exists to include various other lines of coverage onto the business owners policy; however, it is often dependent on the nature of your companies operations.

Depending on the size of your company the coverage options outlined above can be obtained fairly cheaply. A good indicator for pricing coverage options is taking 1% of your overall gross revenue and allocate that premium toward your insurance costs. While it may, at times, be confusing taking the time to understand your insurance coverage can by huge dividends in the event of a loss. When all else fails you can always turn to a licensed insurance professional to help administer your coverage.