If you're in the process of purchasing a commercial insurance policy for your business, there are a number of considerations that you will need to make. This is especially important if you've never purchased commercial insurance before, because you may be thinking more along the lines of residential insurance, and may not understand that you should choose your business insurance a bit differently. Use this information to learn more about what you should include in your commercial insurance policy.
Select An All-Risk Policy
One of the first things that you'll want to keep in mind when purchasing a commercial insurance policy is the importance of selecting an all-risk policy. This is in contrast to a named peril policy that may not provide all of the coverage that you need.
An all-risk policy essentially covers all risks, with the exception of those that are listed. For example, the policy may exclude liability coverage if you fail to properly mark wet floors. If you have a named peril policy which only provides coverage for the stated items, you could be left out in the cold if something outside of the scope of those named risks occurs.
An example of this would be if one of the pipes in your building freezes, bursts and ruins the carpeting. The named risk policy may state that it covers frozen pipes, but if you had computers or other equipment that were ruined in the process and did not specifically include property coverage, you may be on the hook for the costs of your damaged equipment.
Add Business Interruption Coverage
Another important feature that you should include in your commercial insurance policy is business interruption coverage. This protection is invaluable, because it is an important way for you to safeguard your profits in the event of an emergency.
Referencing the frozen pipe instance above, if you are forced to close the doors of your business for a week while the repairs are taking place, you are losing profits. However, if you have business interruption coverage, your insurance company will cover the projected costs of what you would have made during that week. The amount is calculated based upon the limits that you have set, or past weekly profits.
Including the right features in your commercial insurance policy is an important way for you to protect what you're building. When you're picking your policy (from companies like Affordable Insurance), keep these points in mind so you can make the best choice.Share