Business Insurance

By Joseph Kenny

Joseph Kenny is the webmaster of the site www.insure121.com/ where you will find information, news and links to the leading providers in the UK. If you found this article interesting you may find more articles of the same nature in the guide located on site.

There is no denying the fact that success of any venture 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 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.

BOPs 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.

There are liabilities, which cover the company's legal responsibility for the harm it may cause to others. It can be the result of your company’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, BOPs don’t cover professional liability, 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 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 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, loss due to any terrorism is covered only for those policies 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.