We can all agree that accidental losses can happen in the business world. However, large businesses can have the ability to handle and deal with a significant loss; small and medium companies are bound to fall if something similar happens.
Therefore, one small problem could lead to bankruptcy, especially if you do not have coverage that will protect you along the way. That is the main reason why you should find adequate insurance that will provide you peace of mind.
When it comes to business insurance, you should remember that there are numerous types available depending on the insurer. Most of them fall into a category called Commercial Property/Casual Insurance.
We are talking about commercial liability, commercial property, workers’ compensation insurance, and commercial cars among other things.
Commercial Property Insurance
This particular type of insurance will protect your company against financial losses caused by damage to your physical assets including equipment and building. It is the first-party policy, which means that you will get claim payments.
In case you own a property, you will need commercial property coverage, because it will protect your business as well as property, you own or lease.
The policy will cover everything you need for the typical working day, including office equipment, appliances, furniture, finished products and raw materials.
The main benefit of commercial property policy is the flexibility that comes with it. You can choose numerous options, which means that you can name the equipment and things you wish to cover. To help you decide, you can visit news articles to learn how to save money on insurance.
You can insure property based on replacement cost or its cash value.
Business Income and Extra Expense
On the other hand, this particular type of insurance is something you should add to property policy. Unlike other coverage, you will not get protection against physical damage, but it will cover additional expenses as well as the loss of income.
- Income Coverage – It protects your company against income loss that may happen if you have to shut down the business due to physical failure. For instance, if a fire damages your cafe, it means that you should stop working until you repair everything. Therefore, your insurance will cover money you would earn if your business were open so that you can protect yourself against losses and pay continuing expenses such as rent and utilities.
- Extra Expense – It covers all expenses that may happen so that you can avoid a shutdown of the operations in case of physical loss. It will provide you the coverage that is above your regular expenses. For instance, if the sinkhole damaged your bakery business, you will not be able to use it until you repair it. The insurance will cover all expenses you have of renting a temporal machine or for moving your equipment so that you can reduce downtime and continue operation until you repair the original building.
Inland Marine Insurance
Since commercial property policies will cover your physical damage on a fixed location, you will be able to upgrade it in case you wish to use it away from the premises.
We are talking about protecting movable property, including laptop computers, cameras, and cargo as well as construction equipment by getting this particular type of insurance.
You can choose different types of coverage depends on the industry niche. For example, if you decide the contractor’s equipment policy, you will get the protection of generators, hand tools, backhoes and other tools you need to use for construction purposes.
On the other hand, inland transit policy will cover the property you deliver to customers by driving your trucks. If you are operating in the transportation of your products, you have to find ways to include them against issues that may happen. Check out this site: https://en.wikipedia.org/wiki/Inland_marine_insurance to learn more about inland marine insurance.
You can also protect your business against losses that are caused by acts of criminals. Of course, this is a wide definition, but it can help you cover specific damages that are not included with other policies we have mentioned above.
Even though property policies can protect you against third party criminal activities, they cannot protect you against common employee thefts.
At the same time, they tend to exclude loss or damage to currency, money, food stamps, securities, and other properties that are essential for your business.
If you wish to safeguard your company against these issues, you can find employee theft coverage.