What all is covered by commercial insurance?

What all is covered by commercial insurance?

If you own a business, whether a small or large, then you are required to own an insurance cover also. Commercial insurance which is also known as the business insurance cover is the one which is meant for this purpose. This is the only insurance policy cover that can provide you and your business full security against the risks that are involved in the effective running of a business.

This insurance policy varies from the requirements and the type of business a person is running. There are various packages and some schemes that some insurance companies provide.

Commercial insurance policy cover includes number of risks. Legal responsibility of the people working in the company is the biggest risk that the business can face and the company can even face the damages and the potential costs if any person makes claims against it. So, to fulfill this risk factor, law recommends all the company owners to buy employers liability insurance along with commercial insurance. It is a mandatory policy cover which includes the employees of a company against accidents and the potential risks in the company. Along with this, sometimes there are risks that may also damage the public property while on the premises of the business. To cover this risk factor, business liability insurance is also covered by the insurance companies. This includes the protection of claims that are made against the company for the damage of public property.

The commercial insurance also covers product liability insurance. In this, the insurance policy covers the risks regarding the claims made against the company in case of the faults of manufacturing or designing of a product. The insurance company provides compensation for the faulty product to the manufacturing company. This insurance also covers the protection of Officers and Directors of the company with special package of D & O insurance cover.

Sometimes, there are situations such as damage through natural calamities like fire, flood, storm, snow, riots and terrorist activities etc. Then, this becomes the biggest problem to be faced by the company that how to pursue business in these situations. These types of situations are also covered by this commercial insurance policy cover with the name of Business Interruption Insurance policy. This risk factor can be resolved very effectively by the insurance and it is based on the company’s total yearly income of the previous year. The insurance company has set some particular terms and conditions regarding compensation for this risk factor.

The owner of the company should consider all the requirements that are needed to be covered in the insurance policy and then apply for the commercial insurance policy cover. The business insurance rates always differ from company to company and also differ according to the specifications and the needs of the company. One must get the quotes from at least five to eight insurance companies and then decide what to buy and from where to buy.

By Mark Frame

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