Assemble Your Business Insurance Policy Using These Components
Business owners need to customize their business insurance plans so that they can get the most out of their insurance coverage. Often, this means assembling a packaged insurance plan that will cover all exposures of the business. Here, we’ll take a look at the most common attributes of business insurance.
Insurance Rate Criteria
You can find coverage for pretty much any risk that your business might face. Your insurance company will have set rates for various policies. Often, these rates will fluctuate depending on the size of your company, your company’s claims history, and your company’s industry. A good insurance consultant will help you build a plan to suit your needs.
General Liability Insurance
All businesses need to purchase general liability insurance. General liability insurance covers your business in case of bodily injury or property damage to a 3rd party due to your negligence. The majority of these policies will protect you from the legal costs, and the resulting damages awarded to the claimant up to the policy limit.
However, keep in mind that not all legal proceedings will be protected by general liability insurance. Sometimes, it’s important to purchase E&O, D&O, EPLI, or other insurance policies designed to cover specific exposures.
Product Liability Insurance
If your company is involved in manufacturing or distributing a product, you are liable for the safety of the product. A malfunctioning or defective product that causes injury could cost you every dime in your company’s bank account. Product liability insurance can be included in the General Liability policy and will provide coverage for expenses that happen as a result of defective products that inadvertently harm a consumer.
Of course, the insurance company will analyze your industry before setting your rates. Small Business insurance liability varies in price for General Liability coverage, for example a company that manufactures paper will have less catastrophic liability exposure than a company that manufactures helicopter parts.
Professional Liability Insurance and E&O
All companies need to seriously consider purchasing professional liability insurance, also known as errors and omissions insurance. Errors and omissions insurance will cover your company in case a customer or client suffers a monetary loss as a result of an inadvertent error or omission. Unintentional mistakes in design work fall under this category as well. Many contracts require that businesses carry professional liability insurance.
Either way, E&O insurance claims are rising steadily. Did you know that one out of every seven professionals will be named in an E&O lawsuit at some point in their lifetime? Obviously, E&O insurance serves a huge purpose in most small business insurance policies.
Commercial Property Insurance
Business owners also must do whatever they can to protect their company’s property. Fire, flooding, vandalism, and many other dangerous occurrences can destroy the property of a business. As such, businesses should include commercial property insurance in their policies.
Business insurance property policies require the owner to insure the property to the full value. Some businesses may think that they pay too much for business insurance or over-insure there property, but it is important that you insure your property to full value on a replacement cost basis in case of a loss to recoup the full value of your property.
Shop around and compare prices at various insurance companies. Get quotes on quotes from multiples carriers as some insurance companies will provide lower rates for certain type of business insurance. You will find that you can acquire a reasonable and inexpensive plan if you incorporate all of these elements.
Read more about business insurance and how to build a plan that will include everything your business needs.
To build an insurance policy that will be effective and affordable, you need a company that actually customizes your policy for you. Visit us at www.rja.com to consult with an insurance professional who will construct a policy that will work for you.
Article from articlesbase.com
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