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Commercial Insurance
- 1. Commercial Insurance Commercial orbusiness insurance provides coverage for your business in the case of almost any eventuality. First off, what are the types of coverage available for a business? According to information from the US Small Business Alliance: General Liability Insurance Business owners purchase general liability insurance to cover legal hassles due to accident, injuries and claims of negligence. These policies protect against payments as the result of bodily injury, property damage, medical expenses, libel, slander, the cost of defending lawsuits, and settlement bonds or judgments required during an appeal procedure. Product Liability Insurance Companies that manufacture, wholesale, distribute, and retail a product may be liable for its safety. Product liability insurance protects against financial loss as a result of a defect product that causes injury or bodily harm. The amount of insurance you should purchase depends on the products you sell or manufacture. A clothing store would have far less risk than a small appliance store, for example. Professional Liability Insurance Business owners providing services should consider having professional liability insurance (also known as errors and omissions insurance). This type of liability coverage protects your business against malpractice, errors, and negligence in provision of services to your customers. Depending on your profession, you may be required by your state government to carry such a policy. For example, physicians are required to purchase malpractice insurance as a condition of practicing in certain states. Commercial Property Insurance Property insurance covers everything related to the loss and damage of company property due to a wide-variety of events such as fire, smoke, wind and hail storms, civil disobedience and vandalism. The definition of "property" is broad, and includes lost income, business interruption, buildings, computers, company papers and money. To read more, visit http://www.sba.gov/content/types-business-insurance. In a strange way, all varieties of insurance, including commercial insurance is based on wagering, used to hedge against the risk of a loss. Insurance has a lot of jargon. An insurer, or insurance carrier, is a company that sells insurance; the insured, or policyholder, is the person or business buying the insurance. The premium is the amount charged by the insurer for coverage. As a result of insurance, the practice of risk
- 2. management has developedover time. Risk management strategies are diverse and include minimizing the negative consequences of the risk, or even accepting such consequences. An actuary is someone who deals with the financial impact of risk and uncertainty. Actuaries use a lot of mathematical modeling. Complexity is part of life, and insurance mirrors that. Your best bet is to call an independent insurance agent to cut through all the complexity. It's impossible to avoid risk. Life is all about risk and reward. The key to it all, however, is to protect yourself from the perils of life. Financial loss can financially devastate an individual, much less a business. Owing to inflation, losing everything in a calamity costs at least three times more to replace and bounce back from. If a business doesn't have coverage, it can collapse because of having to stay closed. In a way, its kind of like losing one's job and not having another source of income. Getting business insurance however, can help to protect your business. insurance agency, business insurance, commercial insurance