There isn’t no denying that the success of any business, large or small depends on a sweat equity, hard work, and a bit of luck by the owners of the company, and the group of employees. But its also well known that one unfortunate disaster can wipe out those efforts, and bring all those years of hard work and profits to a halt. So, to avoid such instances, you need to properly insure your business. Get free business insurance quotes from various vendors.
There are plenty of business insurance companies out there, which all have policies that will combine protection for the property of the business, as well as the liability risks, all in one package. You can also just get separate, specific coverage as well. An insurance policy of this type is known as a business owners’ policy or (BOP). Larger companies are able to purchase commercial package policies as well.
BOPs may include property insurance for the buildings, as well as the equipment owned by the company. If there is any type of loss of income, due to the disruption of operations to the business because of any type of unforeseen accidents, such as fire, that will be covered under the Business Interruption Insurance.
There are also liabilities, which will cover the company’s legal responsibilities, if there is any harm cause to others on the business premises. It is based on the result of your company’s potential failure to perform business operations. It can also be based on bodily injury, as well as property damage, which may be caused due to defective products, any faulty installations, and/or any errors in services provided.
However, BOPs usually do not cover professional liability, insurance for company automobiles, worker’s compensation and health/disability insurance. Separate policies are required for and are available for these professional services, the vehicles and employee welfare. Generally floods, acts of god, such as earthquakes, and unforeseen terrorist attacks are not usually covered under business insurance.
Getting Protection Against Flood Damage
If your business or office is in a flood zone area, you then definitely need some type of flood protection policy. These policies will provide coverage and protect you against floods. First, try to find out if your place of business has been hit by a flood in the past. Make sure you prepare yourself in advance to make up for any losses. Otherwise you may be in trouble.
Protect Yourself Against Earthquake Damage
Earthquakes are also not usually included in most business property insurance policies, such as a homeowners or business owners’ package policies. Special Earthquake Insurance Policies for homeowners or Commercial Property Earthquake Endorsements, for businesses, will cover you if you happen to live in an earthquake-prone area. Keep in mind that these earthquake policies will usually have different deductibles, depending on the area.
Business Interruption Insurance, which will reimburses your company for any loss of income during a shutdown, will usually just apply only to the damage that’s covered under your business property insurance policy. There will not be any reimbursement for any loss, due to the closure of the business because of the earthquake. But the earthquake coverage policy should cover that.
Protect Yourself Against Potential Terrorist Attacks
In the US, any losses suffered due to any acts of terrorism, is covered for businesses who have optional terrorism coverage. It will come under the ‘Terrorism Risk Insurance Act’ of 2002. There are however some exceptions under workers’ compensation, which may include injuries and/or deaths due to acts of terrorism.