Protecting Your Business
An important part of operating a business is protecting it from severe financial loss. Often times being adequately prepared for such a sudden loss can be the difference in a business’ ability to continue operating. The best investment a business can make to avoid severe financial loss is a commercial insurance policy. There are different types of coverage available, however, and it is important a business selects the appropriate policy and insurance agent that will best meet their needs.
Commercial Insurance is Significant
The protection and peace of mind insurance brings is critical, especially for small businesses. Smaller businesses often operate with less capital than larger companies and have a lower ability to absorb loss stemming from accident, liability, or theft. An appropriate amount of insurance coverage can be the difference in whether a small business recovers from a catastrophic loss or goes under.
Types of Commercial Insurance
There are three primary types of commercial policies: property insurance, liability insurance, and worker’s compensation insurance. Property insurance is intended to cover damage within a place of business. Typically it will cover damage that results from fire or flood and is designed to compensate the business that holds the insurance policy. Liability insurance is designed to protect a business from liability for a third parties’ claim. This includes damages from personal injury or property damage lawsuits that occur at a place of business or in which a business might be liable. Liability insurance is designed to compensate the injured third party on behalf of the business that holds the policy. Finally, worker’s compensation insurance is intended to protect a business when an employee is injured at work. While there are some other specialized types of policies available, these three categories provide important coverage of frequent risks that a business should consider.
Considerations in Buying a Policy
Another important consideration is the insurance agent that will be servicing the policy. A relationship with a trusted agent is a valuable part of the process of selecting insurance coverage. A skilled insurance agent will be able to explain common losses in a given industry and come up with coverage options tailored to the needs of a specific business. A business representative should be sure to understand all of the terminology being used and not be afraid to ask for clarification. An insurance agent won’t have the same insight into a business as an owner or representative will so communication is important.
Report Claims Quickly
In an instance where a loss occurs it’s imperative to report the claim to the insurance agent quickly. Investigations can be time sensitive and loss mitigation efforts often need to commence immediately. Commercial claims are frequently larger and more complicated than residential claims so the need to report a claim quickly is even more necessary in a commercial setting.
Businesses grow. As they grow, their insurance needs change. A business owner should regularly update an insurance agent on changes to the business so they can get expert insight into the possibility of shifting insurance needs. A business owner must stay on top of both changes within a business and the variety of insurance policies available to make certain the insurance needs of the business are always met.