A Brief Review of Commercial Insurance Policies

4 Mins read

Business owners assess insurance policies to find the right coverage level for their assets. Through insurance policies, the business mitigates the risk of a financial loss and lowers the risk of losing credibility in their industry. The policies apply to the company’s property and on-site assets. All businesses must also obtain a coverage to protect their workers should they sustain an injury on the job. Each of the policies plays a vital role in protecting the company and its assets. Businesses that provide advice for the clients will also need to get protection against bad advice that generates a financial loss for the clients. Reviewing all commercial insurance policies shows the business owner what options protect the company.

Commercial Insurance Policies

Protection for Their Property

Commercial property insurance provides coverage for the property itself when covered events happen. The covered events are fires, natural disasters, and criminal acts. The insurance provides funds if the property is damaged or a total loss, and the owner files a claim to collect these funds. The terms of the policy define if the owner receives the market value or the true replacement value. The property owner receives a check from their insurer after a claims adjuster conducts an assessment of the property and creates a damage report. The valuation for the damage defines how much the owner receives for repairs.

Along with the building, the coverage provides protection for the company’s inventory, supplies, and equipment stored inside the building. If the business has a safe or cash registers, the coverage applies to the equipment and items that are stored inside it. The business receives a specific amount for cash on the premises in a vault, safe, or other storage options. Commercial property owners can learn more about insurance from Garrity now.

Workers Compensation Coverage

Worker’s compensation coverage provides help for workers who are injured on the job or while performing work duties. When a worker is injured, the employer must file a claim through the insurance provider, and the worker visits an urgent care facility or the emergency room for a complete evaluation. The medical report is sent to the insurer, and a claims adjuster is assigned to the claim. The claims adjust investigates the accident to ensure that it follows the terms of the policy.

If the worker qualifies for the coverage, the insurance pays for all medical treatment for the injury, and the worker receives wage replacement benefits until they can return to work. If the worker doesn’t qualify, the claim is denied. However, the employer will pay for the initial evaluation from the doctor through their insurance policy. All workers who are injured on the job undergo a drug and alcohol screening at the ER or urgent care facility. If they fail the screening, the worker is disqualified automatically. All workers who are denied worker’s compensation coverage have the legal right to see counsel from an attorney.

General or Global Liability Coverage

General or global liability insurance provides assistance when the company may be liable for property damage or a customer-related injury. It applies to premises liabilities that happen because of a hazard found on the property that caused a customer to fall and sustain an injury. The coverage provides compensation to the injured party, and it may provide additional help if the company becomes the defendant in a lawsuit and loses the case. The primary purpose of the insurance policy is to protect the company against a serious financial loss that could shut down the company entirely. It can provide the company with a settlement offer to extend to an injured party to avoid the lawsuit, too.

Professional Liability Coverage

Professional liability coverage is necessary for individuals who present advice to clients or patients every day as a part of their profession. For example, a doctor provides advice to their patients about their health. If the doctor’s advice leads to an injury, the patient could file a liability claim against the doctor because the patient sustained injuries by following the doctor’s advice. Professionals could also face liabilities if they provide advice to anyone outside their business. For example, if an IT consultant recommended the integration of software into a business network, and later they discover the software was used by a hacker to steal financial data, the consultant faces liabilities for recommending the software.

Even in a social setting professionals must be careful when dispensing their advice to others. By purchasing professional liability coverage, they can protect themselves against legal claims for bad advice.

Product Liability Coverage

Product liability coverage provides protection in the event that a consumer becomes injured while using the company’s products. The cases often start with a report to the FTC’s Bureau of Consumer Rights, and the agency may choose to investigate the accident if the injuries were serious or if more than one consumer sustained an injury. If the product is deemed dangerous, the FTC issues a product recall, and the manufacturer must follow instructions included in the recall.

Companies with product liability coverage may acquire the funds to manage compensation for all consumers who were injured and pay for their medical expenses. It is a beneficial way to prevent significant financial losses because of a lawsuit or product recall. The business owner files a claim whenever a claim is filed against the company for any product. If the company manufacturers several products, they will need to get maximum coverage against product liabilities. The policies will also provide funds to cover the cost of legal fees for a lawsuit.

Business owners review insurance policies to find the best way to protect their company and its investments. Real property, equipment, machinery, and electronics are common assets that require protection through an insurance policy. The coverage also applies to liabilities that the business owner could face while operating their business and producing products for consumers. Each of the policies offers financial assistance to protect against financial losses and help the company avoid a complete shutdown. Business owners need to review each policy according to what their company does to protect them more fully.

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