Small and medium sized businesses need help when it comes to managing risk, and this can be done with commercial insurance. These policies can help to protect the business and ensure long term growth. There are, unfortunately, many business which have collapsed due to lawsuits, where they lacked the right insurance. It is of paramount importance that modern businesses are fully covered, especially in the age of litigation.
There are numerous different aspects of insurance for businesses and the parts required will be based on the needs of the business, the industry, the state laws, and the customers served by the business. Business insurance can be very broad and range from covering product defects to employee injury.
There are also various insurance policies which are required by law. The requirements are based on the industry. For example, insurance is required for lenders and landlords. Having the right type of insurance, as well as the right amount of insurance, will help to avoid any problems.
Overall, commercial insurance is limited in both the range of liabilities covered, and the maximum amount in damages which is covered for each liability. Knowing the extend of, and the limit of each liability cover is vital as it may need to be expanded based on the growth of the business. This can be done with actions such as buying an umbrella, which increases the liability cover. It is best to speak to an insurance professional should the needs to of the business change.
Insurance in this category will cover actions such as property damage, bodily injury and injury caused by advertising. Many premiums also have certain exclusions which should be known before the premium is agreed to. An exclusion will reduce the number of liabilities covered by the policy.
The limits of an insurance policy are all interrelated, which can have consequences should multiple claims be made on a business. For instance, if one claim is paid for damages, then it will effect the limits on the rest of the policy. It should also be noted that the general commercial liability will remain the same regardless of the number of people claiming against the business.
There are some important factors to understand before taking out insurance. Of particular importance is the occurrence limit. This is the maximum amount of money that will be paid to any single claim based on medical payments and bodily damage. The general aggregate limit is also essential to understand, as this is the total figure that will be paid out for all the damages incurred across the entire insurance policy (during the period under contract). This means that should the total amount be met, the insurance company will not make any further payments on damages.
There are also a number of other categories, but those mentioned above are the most important to understand and discuss with an insurance professional. Seeking professional advice is always recommended as a means to obtain the correct level of coverage, and to have the maximum protection possible.