Managing a successful small business in today’s tumultuous and challenging economy is difficult enough without the threat of ruin from outside forces or natural disasters. Thankfully, by purchasing commercial property insurance, you as a small business owner will be prepared for any and all situations that may arise. If you don’t have this coverage, you are putting your business at great risk as even something like theft or fire can cause you to lose your business. Therefore, when you invest in commercial property insurance, you can sleep better at night knowing you have done all you can to protect your business and its future. Read on to learn more about commercial property insurance solutions for small businesses:
The business world is extremely unpredictable already, and your risk for loss is a valid cause for concern just from everyday happenings like theft or fire. Thankfully, you can reduce your risk of loss and protect your business from known dangers and risks by investing in a commercial property policy. Just consider the fact that if you don’t do this, you could lose everything you have worked so hard to build. Even a minor incident could be devastating to your business and set you years back financially if not put you under entirely.
4 Types of Commercial Property Insurance For Small Business
Under the broad definition of commercial property insurance, there are some types of coverage that you should understand as a small business owner. This will further quantify how such a policy can help you protect your business and your years of hard work from unnecessary loss:
1. Property Insurance
This element of a commercial policy will provide financially if the structure of your business or the contents are damaged or stolen. It is the backbone of a well-constructed commercial property policy. It in essence is designed to protect the four walls of your business along with the tools and equipment that make your business run. For example, your computer system, accounts receivable, inventory, furnishings, and even security systems could be covered under this aspect of coverage. Property insurance in its most simple form helps you avoid the pitfalls of owning a business if something goes wrong. This includes damage from a person such as theft or can include damage sustained in a natural disaster like an earthquake, fire, flood, etc.
2. Liability Insurance
Another part of a general commercial property policy will include some element of liability insurance coverage. This protects your business against the risk of liability claims. Unfortunately, in our society today, this is all too real of a risk as many people are seemingly looking for an opportunity to profit from a lawsuit. Thankfully, this coverage protects you against claims pertaining to bodily injury, and property damage and will even cover advertising mistakes. Liability coverage can also protect your assets in some specific cases too.
There are lots of different liability coverages, which can include coverage for legal costs and even payouts if you are found legally liable in a case. This type of coverage is often required for automotive insurance policies, product manufacturers, and any professional who practices law or medicine.
3. Business Vehicle Insurance
If you utilize a vehicle as part of doing business, such as taking clients for a drive, going place-to-place, or providing a service via your car, you likely need business vehicle insurance, which is covered above and beyond standard auto insurance. This coverage protects you from liability damages, collisions, or physical damage to your car as well as covering medical expenses that were the result of injuries. Two main categories fall under this aspect of a commercial policy, they are:
- Collision Loss: This covers damage from an auto accident.
- Comprehensive Loss: This covers damage from weather, theft, or other non-collision causes.
4. Workers’ Compensation Insurance
If you have any employees at all, even just one, you are responsible for their safety while on the job. The workers’ compensation part of a commercial policy includes coverage for employees’ medical expenses, lost wages, and rehabilitation costs if they are injured or become ill on the job. Most states also legally require businesses to invest in workers’ compensation insurance. Some examples of qualifying cases include illness due to exposure to hazardous materials, broken bones from a fall, or repetitive stress injuries like carpal tunnel syndrome.
Additional Coverage Options
In addition to the coverage elements listed above, there are other types of policies you can add to your base coverage called umbrella policies. These can include higher liability coverage amounts, which will protect you even further from liabilities. You can also opt for additional coverage for slander, libel, false arrest, detention, imprisonment, malicious prosecution, and shock or mental anguish.
1. Specialized Liability Insurance
If you have a big client who demands substantial liability coverage, have a great deal of contact with the public, own several business vehicles or work in a hazardous environment, you should consider these additional umbrella policies or consider a specialized liability insurance policy. This coverage can protect you against equipment failures, mistakes, copyright infringement, and more. Arnold can tailor a specialized policy to meet your small business’s needs. This type of coverage is also called Errors and Omissions Insurance.
2. Business Owner Policy
One of the best ways to save money on commercial auto insurance is through a Business Owner Policy (BOP). This allows you to purchase the coverage that best fits your needs, allowing you to tailor it to your business. It combines business property and business liability insurance and is ideally suited for small businesses.
Protect Your Small Business
Keep your business protected and thriving by investing in commercial property insurance. You have invested a great deal of your time and effort into building your small business. You don’t want all this hard work ruined by something unexpected and possibly even preventable, but at least with this coverage, you will have the resources to rebuild and keep your doors open, no matter what happens. Find out more about how to protect your business by contacting Arnold Insurance today.