All About Business Interruption Insurance

Business interruption insurance is a constructed portion of broader types of policies for commercial insurance. This specific coverage is generally located in insurance policies for commercial property and BOP (business owner’s policies).

It can only be triggered within three types of limited circumstances that include the following:

  1. The physical damage that a property sustains is so severe that the company has been forced to stop operating.
  2. Physical damage to other types of property that has occurred from loss that would have been covered by the company’s insurance. This damage has partially or totally prevented employees or customers from being able to gain access into the company premises.
  3. Government has made the decision to shut an area down caused from property damage that has been caused by perils that are covered by a business’s insurance policy that now prevents employees or customers from being able to access the premises.

Even after covered events occur, many policies will state that there are waiting periods that are usually up to several days. This waiting period will need to progress before the insurance is activated. Once this insurance is active, the coverage will not be retroactive in regards to the exact day of the accident or event.

The coverage will be limited, especially once waiting periods have expired. The coverage can be used for expenses related to temporary relocation, loss of net income and for ongoing expenses like payroll that will allow the company to carry on paying their employees opposed to letting them go.

The coverage is never open ended. This type of coverage is only available as long as it may be necessary in order for the company to be in full operation again. The coverage will generally not extend past 12 months. Additionally the company will need to provide all losses related to business interruptions to their insurer.

Insurance For Business Interruptions Is Limited

It is important for business owners to understand that the coverage involved in business interruption should not be regarded as a “blank check” that can be used for every type of business disruption. Added to the above mentioned limitations, this coverage has restrictions that include the following:

Suspension Of Operations

Cessations, slowdowns and suspensions that are considered to be a covered event will be covered.

Net income that is lost caused from unfavorable business conditions after a loss will not be covered by business interruption insurance.

Misconceptions

One of the misconceptions that have arisen is that this coverage does not serve a useful purpose. However, this type of insurance can provide vital protection in the circumstances that a company undergoes an event that they are unable to control.

The primary purpose of this insurance is essential in protecting a company from losses that come about due to the inability to operate normal operations and the inability for customers or employees to enter or occupy the company premises. This insurance can save a company from going under.

Understanding Workers Comp Insurance

When looking for workers comp insurance, it can be a minefield. There are now so many products and services in the marketplace that knowing what is best can take lots of research and effort. As such, this article is going to cover the key points to look for when deciding on insurance. After reading this article, the various products should become clearer.

Note that there are certain states that require, by law, employers to have workers compensation insurance, even if they have just one employee. This should be noted and then checked to ensure that the business avoids any expensive fines.

Here are some of the important considerations to make when looking:

Competitive pricing - obviously, this will be high on the list of priorities when it comes to searching for this type of insurance. With so many insurance companies competing in the marketplace, it makes sense to shop around and look for premium discounts and policy dividends, amongst other perks. Search for offers at certain times of the year, as this is when the insurance companies are most competitive.

Cash flow assistance - this is something that is overlooked but it is important if money is tight, and a budget needs to be adhered to. Look for flexible payment plans and companies that offer low minimum payments. This criteria will be based on the individual situation and needs, but match companies based on similar packages offered to get a fair comparison.

Efficient claim handling - should a claim need to be made, the faster, and more efficient the process, the better. In terms of specifics, inquire into how many people will need to be contacted and who deals with such claims. A long, convoluted process is the worst possible experience when a claim is made.

Easy to contact support staff - finding the lowest cost workers comp insurance can often be the worst choice, as they fail to provide good a support system. In such cases, the low cost is a false economy and should be avoided in favor of more professional companies. The ability to contact support staff and have an easy-to-use system is important to clarify premiums, and especially when making a claim.

Health care – find those with a good reputation for working with healthcare providers to promote fast and high quality care.

Where to purchase insurance - insurance can be purchased via an agent or a broker licensed to provide and write policies in the state. The list can be found on the local government website. It is also worth checking with local trade groups as they are usually able to negotiate a special rate for their members.

When looking for insurance companies, always check the reputation of the firm in question. Find those with a track record in the industry and those that place importance on financial stability and fast, efficient claims handling. These are very important factors, and should come ahead of simply finding the cheapest premium available.

Tips On Choosing Commercial Auto Insurance

There are a lot of options for commercial auto insurance, and it’s a competitive industry, but you still need to take some precautions in order to find a policy that will not only be affordable, but will also give you the full cover you need. Good coverage doesn’t need to be expensive; you just need to know what to look for and what information to gather before you start asking for quotes.

Before you start looking at insurance companies conduct your own risk assessment. Check if there are any ways you can lower your risk. Look through your employee’s driving records – driving records are a major factor in premium rates, so taking these into consideration can help you to attain a more affordable policy.

Although a CDL (Commercial Driver’s License) may not necessarily be required in order to drive your vehicles, it is often the case that drivers who hold these have higher driving skills and may qualify for discounts. If you do have any employees who hold CDLs, make sure you mention this when you ask for a quote from the insurance company.

It is worth asking your agent if there are any discounts that your business may qualify for. Not all of these are pointed out and you may have to ask in order to find out about them. For example, some insurance firms will offer discounts on their auto insurance policies to businesses that have been in business for a minimum amount of time, and pay in full up front.

Make sure before you request a quote that you have all of the information handy that can affect the quote or conditions of the policy, including details of any special equipment, any inventory that is transported in the vehicles, and any relevant details regarding employee driving records. Supplying accurate information in full when requesting a quote from an insurance company will help you to get a realistic idea of what kind of cover they are able to offer you, as well as the price of the premiums.

It is also advisable you conduct an online search for feedback on the company before you do business with them. Typing the company’s name, along with “complaint” into a search engine, for example, will bring up any previous feedback on social media or forums from clients who have had negative experiences with that particular firm. While not all feedback will be warranted, if there is more than one client complaining about the same issue, you’ll know that there is probably something in it and will be able to take that into account when making your decision.

It is important to regularly review all of your insurance policies in order to make sure that you are not over-paying or paying for cover you no longer need. In order to make sure you have the commercial auto insurance that gives you the full cover you need without paying for unnecessary cover, it is a best to review your insurance options annually.