Business Insurance – what is covered
Business insurance covers losses or damages to your property perils like fire, theft and accident.
It also provides protection from liability claims and other legal liabilities arising due to the death of an employee or any damage caused by his/her actions.
If you employ people in your business, it is compulsory that you have a workers compensation scheme for them.
The employer must provide compensation to the injured party if he causes any injury while on duty or performing a task assigned to him.
This can include medical expenses as well as pay lost during recovery time.
As an employer, you may also need to buy a policy that protects your business against claims of discrimination in the workplace. This includes sex and race related discrimination often know as Management Liability Insurance.
The insurance will cover any legal costs incurred due to these types of lawsuits as well as pay damages awarded.
Insurance examples for small business
Business Insurance Example 1:
Insurance covers damage to another object or person’s property caused by you. Insurance covers loss of money in your safe as a result of fire, burglary or any other vital reasons.
Insurance provides compensation for any legal costs that may arise due to disputes with another person over the ownership or delivery of items you sell/provide, etc.
Business Insurance Example 2
Insurance would cover the cost of goods lost due to fire, flood, theft and vandalism.
It also covers legal liability claims made by third parties against your business. What they need to prove is that your actions have caused them some financial loss because they suffered a physical injury or death. An example is when you accidentally injure a customer when he visits your shop; it’s highly likely that his family will sue you for damages like medical expenses and loss of income if they are breadwinners.
Business Insurance Example 3:
This policy will cover any legal costs incurred if an accident occurs due to negligence by you as an employer during the course of employment like faulty equipment used by an employee while performing a task assigned to him. It also covers damages awarded by a court and actions taken against you as either party involved in dispute are responsible for their legal costs as well.
Business Insurance Example 4:
In the case of a disaster like fire or flood, this policy covers the cost incurred in repairing/replacing damaged property like stock and equipment. It also provides compensation to your employees for any financial loss incurred due to damage done by a disaster. You need to carefully look at what each policy offers because some will cover financial loss only, while others will compensate for any financial and physical loss.
Business Insurance Example 5:
Business insurance is also available for individual entrepreneurs like drivers running their own transportation service business.
What this covers is damage caused by the driver while performing his duty to other vehicle or property. This includes damages done by faulty equipment used in the task as well as legal costs incurred due to accidents.
Business Insurance Example 6:
Similar policies are available for individuals with their micro business; they can buy a policy that provides coverage against any injury resulting from accidents during work hours even if it’s your fault or that of another worker on the job sharing duties.
Its important to get quality advice from an insurance broker.
There are many types of insurance policies, terms and conditions that make using an insurance broker a smart move.
Commercial Property Insurance – what does it cover?
It is worth noting that Commercial Property insurance can be purchased for structures only and not land (i.e. if a building catches fire or suffers structural damage).
What it does cover though are any items on the property as well as liability for claims made against you.
What this means in essence is that you are indemnified from damages, whether profits have been made or not.
What is specifically covered varies slightly from insurer to insurer and area to area but generally includes the following:
- Loss of rent should your offices become unusable through fire etc.;
- Loss of profit while premises are being repaired;
- Damage caused by faulty goods sold or held at your premises;
- Cover against a range of incidents, including theft, vandalism, malicious damage and fire;
Insurance contracts take the form of indemnity insurance products.
What this implies is that the insurer only has to pay the amount you have specified in your policy and not a penny more.
This means it is worth checking what kinds of quantities each party considers reasonable for different scenarios.
A fairly standard list of insured events for commercial property insurance include:
- Escape of molten material from its intended confines at things
- Explosion or implosion
- Storm, wind and rain
- Water damage caused by leaking from damaged pipes, water systems, tanks or drains, or by a damaged main near the building
- Riot or civil commotion
- Malicious acts
- Accidental damage
Obtaining the right insurance for your business is one of the most important decisions you have to make when starting a company.
- How can you be sure that you are getting the best rates, and the coverage that will support your company in its growth?
- How do you know if this insurance broker is trustworthy?
- How much does it cost to get all these different quote comparisons from various companies?
- How long does it take to get these quotes anyway?
When evaluating which business insurance broker or agency to connect with, there are certain qualities to look for:
1. You want an independent insurance broker who works with several major carriers rather than one who only works with one carrier. As a general rule of thumb, aim for a minimum of three insurers. Two are not enough, and five is ideal to compare rates and coverage options.
2. An insurance broker with experience in your line of business, and who is knowledgeable about the industry, will be able to ask the right questions and help you identify risks that might otherwise go unnoticed. How long has this broker been in business? How many years has he or she been doing business insurance – say specifically small business insurance? How many clients does this broker have – again specialising in your particular niche market?
3. A trustworthy, ethical individual who understands not only how policies work but also has knowledge about what businesses need as far as coverage goes. How long has he or she been working for his or her firm? How many policies has this broker or agency sold to companies like yours? How long has the insurance firm been in business? How many policies does it place annually? How much of this business comes from referrals and word-of-mouth as opposed to being a result of advertising, direct mailers, telemarketing, etc.?
4. How does this broker or agency communicate with its customers? How often does it make contact via phone, email, etc.? How are new clients and renewal policies solicited?
5. How well do you like this person whom you will have to work with? How easily can he or she explain complex matters in simple words? How well does this broker seem to know your industry-specific risks? How much does he or she charge for his services? How often can you expect this person to make contact with you (i.e., how much time will it take from the beginning of the process until you get coverage)? How long have clients worked with this insurance advisor?
6. How big is the insurance brokerage and its internal staff? A large firm should be able to offer more than one point of contact if questions arise or something goes wrong, and larger firms tend to offer more premiums as well – that means more business for the agency. Larger agencies also tend to provide training opportunities for their employees and offer a multitude of services.
7. Are marketing materials easy to understand and how useful are they? What is your overall impression from just looking at these documents if any? How readily available will quotes be? How quickly can you get an answer to a question once you’ve called for information.
8. What is your tolerance level when it comes to follow-up calls, paperwork, phone tag, etc.? How much time do you want or need to commit to finding coverage that fits your needs – before AND after you buy the policy(s)? And last but not least, How much of a deductible can you afford?
If your business currently has adequate coverage but is at risk for not having enough if it experiences growth or unforeseen events, buying additional insurance protection may be your best option. If you have one or more exposures that fall under “high risk” then insurance will not only cover the cost of repairs, but will also protect your company from paying out-of-pocket expenses in time and money lost during the claims process – potentially saving your company thousands of dollars in operating costs.
As always reach out for a chat if you have any questions here
Insurance brokers in the Australia offer their clients a range of benefits that are not available when you buy insurance directly from an insurance company.
Here are 7 good reasons to use an insurance broker:
1. If you have a complex life situation such as mortgages or investment properties, then it will be important that you get proper advice when choosing your home contents insurance policy. If you buy your home contents insurance through a bank, they generally will not offer sufficient cover if something was to happen like theft of damage caused by fire or flood. You could be left without adequate coverage in these situations.
2. Insurance brokers do not just sell one product, they assess your needs and then look for the best solution for you and your family. Finding the most appropriate product is as important as finding the best deal. Insurance brokers are fully trained with the knowledge and expertise needed to find you a product that is right for your personal insurance needs.
3. Insurance brokers know the difference between what different types of policies provide as this information can vary depending on who exactly the insured is. For example, some policies offer storm damage cover in the event of a cyclone or tornado whereas others do not.
4. Insurance brokers work with an array of different insurers which allows them to get first hand knowledge on what they have to offer and depending on what type of policy you’re looking for, this can be a real benefit. They will know who has something suitable especially if it’s not normal or a bit different.
5. Insurance brokers can advise you on the best time to change your home contents insurance policy so that it suits what is important for your circumstances. If you are buying a house, upgrading or renovating your existing property, going overseas temporarily or permanently, changing jobs or getting married etc., then your risk will have changed and therefore so could your home contents insurance policy.
6. Comparing policies from different insurance companies takes time and effort plus sometimes involves dealing with the insurers directly when it comes to questions about their products. There are many other important things in life than just finding an appropriate home contents insurance policy; most people would rather spend their free time doing more enjoyable activities. Since an insurance broker works with multiple insurers there is no need for you to waste valuable time and energy comparing products. You can leave it all to your insurance broker and they will find the best solution for you.
7. Insurance brokers provide lots of useful information on home contents as well as any related areas such as tenant’s insurance, landlord’s insurance etc. They’ll be able to call upon their connections with other companies like legal advisors, accountants and solicitors should there be anything specific you need to know about home ownership and renting out property.
10 Reasons To Use An Insurance Broker For Commercial Property Insurance
1. You will have someone to help you find the right policy.
2. They can explain the policy’s details to you in terms that are easier to understand.
3. They can explain important clauses of your policy and how they apply to your business specifically. Maybe there is something about your location, type of business or more information about any risk factors for theft, damage or lawsuits on which you need clarification?
4. If you do not have experience dealing with insurance companies already then a broker will know what company policies and procedures you should follow when submitting claims. A good broker will also have built up relationships with insurance companies so if one company refuses to cover an expense that another provides at no extra cost chances are the negotiator on case at the insurance brokerage firm will be able to find a solution for you – at no extra cost.
5. They are there when you have questions or concerns about your policy, whether it be midyear before renewal time or even in the aftermath of a claim. It is always reassuring to know that someone else is working on your behalf whenever you have issues with an insurance policy.
6. If you were to lose all control over your own company due to some unforeseen event such as death, disability or bankruptcy then an insurance broker will know who to get hold of and what paperwork will need to be done from the company’s end so that everything keeps running smoothly without any hiccups for clients and customers alike – again at no extra cost!
7. A broker will negotiate prices with the different insurance companies for you so that you can get some of the best possible rates available on the market!
8. If you are new to owning or operating a business, especially one that handles valuable goods or property such as commercial real estate, a good insurance broker may be able to steer you away from excessive policies that could cost your company more than it needs to spend on coverage and savings that can be used instead to further improve your business products or services. Similarly when starting up a new company an experienced broker will know immediately what type of policy would suit your specific needs and look into how much they are likely to cost you.
9. It will keep paperwork flowing properly and efficiently.
10. Being protected against problems that can eat away at your business profits is a good idea no matter what industry you are in; an insurance broker who knows their stuff will know exactly how to protect your company and provide policies that fit your specific needs so if the worst case scenario does occur then they will also be able to guide you through all the necessary paperwork involved with filing claims or processing payments from other companies for any covered losses.
The 10 reasons listed above are a few of just some examples why it makes sense to use an insurance broker when purchasing commercial property insurance, however these 10 in particular stand out as being especially important.