Running a business entails inherent risks: an employee could get injured on the job, an unforeseen tsunami could level out your factory, or a client might file a lawsuit. Due to these reasons and plenty others, you must have a plan. A plan that safeguards your commercial assets and keeps the business running even after a major disaster.
What Is Commercial Insurance?
It’s a catch-all phrase for a variety of insurance products focused on businesses. Companies, self-employed individuals, and any other type of company fall under this category.
Commercial insurance coverage is markedly distinct from personal insurance, given that businesses face more risk than the average individual. There are various forms of commercial insurance, each targeted at a specific aspect of your business. This could include property and vehicle insurance, excess liability insurance, to name a few. It’s of utmost importance that your organization identify what policy best protects your priorities.
Top Five Benefits of Commercial Insurance
1. Keeps Your Business Assets Protected
One primary reason for getting commercial insurance is to safeguard your precious assets. You’ve probably invested in equipment and other machinery necessary for your services when you own a business. If any of these goods are destroyed or stolen, your commercial insurance policy will cover the cost of replacing them.
2. Mitigate Losses for ‘Acts of God’
The ‘Act of God’ refers to incidents not caused by human intervention. Floods, tornadoes, hurricanes, and lightning-caused fires all qualify. Property and casualty insurance comes in two varieties: all-risk and peril-specific.
Except for the occurrences specifically listed, all-risk insurance covers all events. Peril-specific policies cover specific risks such as fire, floods, and other acts of God.
3. Protection Against Litigation
We live in a litigious culture. Without insurance, your firm might fail in the case of a lawsuit or liability claim. It only takes on contract breach or a disgruntled employee to put your business deep in a lawsuit. Even if you win, the cost of doing so will probably cripple your business’ finances.
Rather than worrying about what could happen, liability insurance can provide you with peace of mind so you can focus on running and growing your business.
4. It’s a Stamp of Credibility
Here’s one you might not have considered: having insurance gives your company instant street-cred. Among business and customer circles, at least.
Commercial insurance demonstrates to potential clients and consumers that you are a safe bet. You have the means to compensate if something goes wrong with the services you provide.
That is why businesses display the phrase “licensed, bonded, and insured” on their vehicles and signs. It fosters trust, which is the money of the modern economy.
5. Protects Your Employees
Your most precious asset is not the products or services you provide, the equipment you take such care to maintain, or even the brand you worked so hard to create over the years. No, your most important asset is your workforce, and it is in your best interest to protect their interests in the event of an injury or accident.
Workers’ compensation is required by law, but you should also consider adding disability coverage, even if you have to charge your employees a portion of the expense.
Conclusion
No business owner has a secret crystal ball that can foretell what will happen in the future. It would be ideal if natural catastrophes, workplace injuries, or litigation never occurred, but no one can promise anything. It’s best to get insured for this reason.
If you want to protect your business from catastrophic loss, you’ll need to partner up with an insurance company you can trust. At Quesurance, we handle business insurance, home insurance, flood insurance, to name a few. Get in touch with us today!
