The Commercial Insurance Basics
You’ve got your business up and running. You’ve thought of everything…or have you? Have you properly insured your business? There is a lot to consider when purchasing commercial insurance, which can include property, auto and umbrella policies. Don’t fret! Advisors Insurance Agency is here to provide you with the basics of commercial insurance. And we are just a call or email away from your free quote!
Commercial Property Insurance
One of the most common types of business insurance is commercial property insurance. This provides a wide range of coverage for buildings, inventory, equipment, tools and more. For example, it typically covers losses from fire, break-in, vandalism, windstorm and other natural or man-made disasters.
A basic commercial property insurance policy may be all you need, although the types of coverage can vary between different insurance companies. As an independent agent, Advisors Insurance Agency can help you determine the type of insurance policy and range of coverage that is best for your business.
What is Covered?
Do you own a commercial building? If so, do you have enough commercial property insurance to cover replacement costs? Although cost estimators are available, we recommend that you secure an appraisal from a third party to accurately determine the current replacement cost of your building. Give your Advisor a call today at (864) 509-0009 and we’ll help you determine if you have enough commercial property insurance for your business.
Most commercial property policies exclude flood as a covered cause of loss. You must purchase a separate policy to protect you from resulting damage. Check your current property insurance policy to confirm flood coverage. If you’re unsure, just ask your Advisor to review your coverage, and we’ll help you find the best solution.
Business Personal Property
Business personal property insurance covers property at a specified location for furniture, fixtures, equipment and inventory. Be aware that most commercial property policies have very limited coverage for property taken off the specified location. If you have equipment that is frequently taken off-site to various locations, it is important that you have an inland marine policy (equipment or installation floater).
Business Income (Business Interruption Coverage)
This coverage reimburses a business owner for lost profits and fixed expenses during the time that a business is closed. It applies while the premises are being restored because of damage from an event, such as a fire. Business income insurance may also cover financial losses that occur if civil authorities limit customer access to your neighborhood or business after a disaster. Advisors Insurance Agency strongly recommends that all businesses acquire this coverage.
Electronic Data Processing (EDP)
This coverage is separate property coverage specifically designed to protect your computer related equipment. Most commercial property policies have limited coverage for computer networks. EDP broadens the causes of loss to include things like power surges and in some cases virus attacks.
Commercial Auto Insurance
Commercial auto insurance can cover a combination of vehicle types (trucks, cars) and drivers. It can also cover some types of motorized equipment. It provides for bodily injury liability and property damage while operating a company automobile, medical payments or Personal Injury Protection (PIP) for the driver and passengers of the policyholder’s car. The policy also covers injuries or damage to someone else.
Hired/Non-owned Auto Liability
Are you renting cars or are your employees using their own vehicles? This particular coverage provides business insurance coverage for certain liabilities arising from the use of a rented or leased vehicle (hired), or a non-owned vehicle (employee using their own vehicle on company business). You can often inexpensively add this coverage to a business auto policy, or in some cases, a general liability policy.
Use of Personal Vehicles
Insurance policies for privately owned vehicles may not cover damage to your privately owned car or truck when it is used for business. This may even include home cosmetics, jewelry sales or a pizza delivery business.
Commercial Umbrella Insurance
If umbrella policies are good for individuals, then they are imperative for business. When a catastrophic liability loss occurs, an umbrella insurance policy can mean the difference between a business surviving, or not.
The rising costs of lawsuits and judgments are important for today’s business owner to consider. Catastrophic liability losses can happen to any business at any time, and a commercial umbrella policy protects you when those losses exceed your basic liability coverage. The time and effort you have taken to build your business is too important for it to disappear after one unforeseen event.
Commercial Umbrella helps you protect your assets by providing liability limits above and beyond your other policies. In some cases, it even broadens your protection. Due to the unpredictable nature of jury awards, Advisors Insurance Agency recommends that your business insurance program include this coverage.
What is Excess Liability Coverage?
This coverage provides extra liability limits over an Umbrella policy. This coverage typically follows the terms of the first underlying insurance policy.
Who needs Excess Liability Coverage?
Higher limits may be necessary for businesses with high loss potential, high profile, sizable sales, numerous assets, large auto fleets, worldwide presence, significant public exposure.
Advisors Insurance Agency understands that every business is unique. We also know you want to make sure you have the proper commercial insurance coverage. Contact us today to find out how to protect your business and your future with the right insurance.