There is no denying the fact that success of a company depends upon the hard work of the team but one disaster can wipe out your efforts and bring down the profits to dust. Thus, to prevent this kind of instance, you should ensure your business, while it is a modest enterprise or a big corporation.
There are insurance companies, which have policies that combine protection for most major property and liability risks in one bundle. You might also opt for separate coverage. Such a policy is called a business owners’ policy (BOP). Larger businesses may purchase a commercial package policy.
BOPs include property Small Business Insurance for equipments and buildings owned by the organization. If there is any loss of income as a result of disruption of operation and business because of injuries like fire, it might be insured under the Business Interruption Insurance.
There are liabilities, which cover the company’s legal duty for the damage it might cause to others. It is the consequence of the failure to do the business operations of your firm. It may also be the physical injury or property damage caused due to defective goods, faulty installations and mistakes in services provided.
Nevertheless, BOPs don’t cover automobile insurance, professional liability, worker’s compensation or health and disability insurance. Separate coverages are required for employees, vehicles and professional services. Usually, terrorist attacks, earthquakes and floods aren’t covered in the business insurance.
Protection Against Flood Damage
You have to definitely go for a policy, which provide coverage against flood, in case your workplace is in the flood zone region. Attempt to learn if flooding in the past had hit the area. Be sure to do something in advance to make up for the loss. Otherwise you may face problem.
Earthquake is also not included in most property insurance policies such as business owners and homeowners’ package policies. Commercial Property Earthquake Endorsement or particular Earthquake Insurance Policy can cover you in case you reside in an earthquake-prone place. Yet, earthquake policies have different deductibles.
Business Interruption Insurance, which reimburses you for the lost income during a shutdown, applies solely to the damage insured under your company property insurance policy. There won’t be compensation for the loss caused because of the closure of business due to the quake. For it, you have to have a quake coverage policy.
Protection Against Terrorist Attack LossesIn America, loss due to any terrorism is covered only for those businesses which have optional terrorism coverage. It comes under the Terrorism Risk Insurance Act 2002. Still, there are exclusions in workers’ settlement, including injuries and deaths due to acts of terrorism.