Here’s what you need to know about commercial insurance.
If you’re the owner of a business, then you should know that commercial insurance is not an option – it’s mandatory. Without it, you risk losing everything you’ve worked so hard to build throughout your entrepreneurial career.
Here are four fast facts you should know about commercial insurance.
1. Commercial Insurance Lets You Transfer Risk
As a business owner, you know all about risk. You took a risk when you started or purchased your business. You risked capital by investing in a business rather than working a 9-to-5 job.
However, some risks are quite serious. For example, if a major storm hits your area and blows away your property, can you afford to rebuild it?
Most business owners can’t afford the expenses that come along with unexpected catastrophes or hazards. That’s why they need to transfer risks of that nature to an insurance company. When you purchase commercial insurance, you’re letting the insurance company handle the risks associated with acts of nature that deal some serious damage to your property.
Commercial insurance enables you to transfer risk.
2. Insurance Can Provide You With Income During The Aftermath Of A Hazard
Sometimes a hazard, such as a hurricane or a tornado, can shut down your business for days, if not weeks. This can be due to extended power outages even if your property was not destroyed by the storm.
You might think that, as a business owner, you’ll just have to suck up that lost revenue and accept the loss. However, if you have insurance, then your lost income during the aftermath of a storm is a risk assumed by the insurance company. As a result, the insurance company will actually pay you what you would normally have earned during the down time.
3. You Can Save Money By Buying “In Bulk”
If you want to purchase commercial insurance, you should know that there are discount models available to you. You can purchase various types of business insurance, such as liability and property insurance, separately, or you can purchase them in one bundle called a business owner’s policy (BOP). Unsurprisingly, when you purchase a BOP, the cost of the whole is cheaper than the sum of the cost of each part. In other words, just as is the case with other types of purchases, you save money when you buy “in bulk.”
4. You’re Covered In This Litigious Age
It seems as though people really love to sue nowadays. It’s been said that the American dream is getting hit by the Pepsi truck. That way, the victim can sue Pepsi for millions of dollars and retire early.
Your business is not immune to threats of a lawsuit. Someone who slips and twists an ankle on your property will happily sue you for as much money as he or she can get.
Fortunately, commercial general liability insurance exists to assume that risk for you. You’ll be covered not only for damages awarded against you by a judge, but also for attorney fees associated with the legal action.
Commercial insurance is indispensable. It gives you peace of mind knowing that very serious threats against your business won’t ruin it.