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Business Insurance Policy
A good time to start looking for a new and quality (but low-cost) business insurance policy is today's date . . . There is no denying the fact that success of a business depends on the hard work of the team but one disaster can wipe out your efforts and bring down the profits to dust. So, to avoid such an instance, you need to insure your business, whether it is a small enterprise or a large corporation.
There are insurance companies, which have insurance-policies which combine insurance protection for all major property and liability risks in one package. You can also opt for separate coverage. Such a policy is called a business owners policy (BOP). Larger companies may purchase a commercial package policy.
A typical Business Insurance Policy includes property insurance for buildings and equipment owned by the company. If there is any loss of income due to disruption of operation and business because of accidents like fire, it can be covered under the Business Interruption Insurance.
There are liabilities, which cover the company's legal responsibility for the harm it may cause to others. It is the result of your company's failure to do the business operations. It can also be the bodily injury or property damage caused due to defective products, faulty installations and errors in services provided.
However, a business insurance policy usually does not cover professional liability, auto insurance, worker's compensation or health and disability insurance. Separate policies are needed for professional services, vehicles and employees. Generally, floods, earthquakes and terrorist attacks are not covered in the business insurance.
Protection Against Flood Damage
If your office is in the flood zone area, you must definitely go for a business insurance policy, which provides coverage against flood. Try to find out whether the place had been hit by flood in the past. Make sure you do something in advance to make up for the loss. Otherwise you may face trouble.
Business insurance policy protection against earthquakes
Earthquakes are also not included in most property insurance policies such as a homeowners insurance policy and business insurance policy packages. Special Earthquake Insurance Policy or Commercial Property Earthquake Endorsement can cover you if you live in an earthquake-prone area. However, earthquake policies have different deductibles.
Business Interruption Insurance, which reimburses you for the lost income during a shutdown, applies only to the damage covered under your business property insurance policy. There won't be reimbursement for the loss caused due to the closure of business because of the earthquake. For it, you must have an earthquake coverage policy.
Protection Against Terrorist Attack Losses
In the US, loss due to any terrorism is covered only for those businesses that have optional terrorism coverage. It comes under the Terrorism Risk Insurance Act 2002. Still, there are exceptions in workers' compensation, which include injuries and deaths due to acts of terrorism.
Joseph Kenny is the webmaster of the insurance site insure121.com where you will find information, news and links to the leading providers of insurance in the U.K. If you found this article interesting you may find more articles on the same subject in the website's insurance guide.