What is Commercial Insurance?
Commercial insurance is basically a fallback plan that you pay for on a monthly basis, much as you would for any other kind of insurance policy. You can look at it like health insurance for your company, if you like. Think about the bundle of problems that any business owner encounters on a daily basis:
Employee injuries in the workplace, malfunctioning equipment and other other unforeseen problem. It pays to be prepared for the inevitable bit of bad luck, and this is where a quality insurance policy will come in and save the day.
What Should be Included in a basic Policy?
Although a comprehensive plan should include quite a few things, the following three features are often considered to be the most important 3 broad categories of occurrence that should be taken into account. Let’s take a look at examples of how they manifest themselves.
This one is perhaps the easiest to think of because the “slip and fall” case has become the classic example of our overly litigious times. A customer might come into your place of business and injure themselves on a piece of equipment. Even if they did so through their own negligence, the customer may challenge you in a legal action. With a good policy in place, the worst-case scenario is that your insurance company pays out to the injured person.
It’s not enough to “know” you’re in the right. The injury scenario isn’t limited solely to customers either: Employees can just as easily hurt themselves. This possibility becomes even more real when the business in question deals with a lot of heavy equipment or toxic/flammable material.
Again, the business that is dealing with heavy and/or complex equipment is going to be at most risk here. If your business relies on one or several pieces of equipment, it would be insane not to have these things insured against the possibility of malfunction.
As you might predict, this possibility depends largely on geographical location. Are you in a part of the country that floods often? What about earthquakes?
These are all things to seriously consider when choosing a commercial insurance plan. All to often, business owners assume that they’ve got all the possibilities covered, but inevitably there are going to be plenty of contingencies that pop up at the worst of times. This, in a nutshell, is the most important reason to have business insurance!
By James Clapton