Business Insurance
By Joseph Kenny
There is no denying the fact that success of any
business depends on the hard work of the team but one disaster can wipe out your efforts and bring down the profits. So, to avoid such an occurrence you need a comprehensive coverage plan, whether it is a small enterprise or a large corporation.
There are companies, which have business insurance policies that combine 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.
Business owners Policies include property insurance for buildings and equipments owned by the company. If there is any loss of income due to disruption of operation because of accidents like fire, it can be covered under the Business Interruption Insurance.
Liability
Insurance can provide coverage for your company's legal responsibility for the harm it may cause to others. It can be the result of your
Business's failure to perform on a contract. It can also be the bodily injury or property damage caused due to defective products, faulty installations and errors in services provided.
However, Business owners policies don't cover professional liability
exposures, automobiles, worker's compensation or health and disability. Separate policies are needed for professional services, vehicles and employees. Generally, floods, earthquakes and terrorist attacks are not covered under business insurance.
Protection Against Flood Damage
If your office is in the flood zone area, you must definitely go for a policy, which provide 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.
Protection Against Earthquake Damage
Earthquake is also not included in most property policies. Special Earthquake Policy or
Business 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 property policy. There won't be reimbursement for the loss caused due to the closure because of the earthquake. For it, you must have an earthquake coverage policy.
Protection Against Terrorist Attack Losses
In the US, Business loss due to terrorism is covered only for those policies that have optional terrorism coverage. It comes under the Terrorism Risk Insurance Act. Still, there are exceptions in workers' compensation, which include injuries and deaths due to acts of terrorism.
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