Understanding Commercial Insurance Coverage

11/11/2020 (Permalink)

Commercial insurance is a vital necessity for any business, no matter how big or small

It Is Important To Understand The Basics Of Coverage

Focusing on all aspects of your Pulaski, TN, business means there is a lot on your plate. A portion of that should also be considering the what-ifs. If something unexpected happens, such as a fire or storm damage, commercial insurance may provide peace of mind that your business will be restored back to normal as quickly as possible. While every policy may be different, it is important to understand the basics of coverage.

Standard Coverage
In general, property insurance often covers more than a homeowner's policy since there is much more happening on the property to keep the business going. In most cases, it will help pay for damage to the building, equipment, tools, inventory, furniture and personal property. That often includes costs associated hiring a fire damage and water restoration professional. Scenarios that will likely be covered include:

• Damage to computers or equipment from an accidental fire.
  
• The building is struck by lightning.
  
• The property is burglarized or vandalized.
  
  

It is important to understand that this type of coverage is not all-encompassing. It typically does not cover situations such as an employee injury, a cyberattack or breach, or vehicles used by the business. In those cases, having additional commercial auto and liability insurance will provide the extra peace of mind but at an added cost.

Cost Factors
Commercial insurance is available with an array of options and add-ons that may be beneficial depending on the type of business. Any add-ons will increase the price, but that may be necessary if located in or near a floodplain. Standard insurance does not cover flooding, so additional flood coverage will be necessary. Other facts that will impact cost include the location of the business, coverage limits, deductible selected and value of the covered property.
Commercial insurance is a vital necessity for any business, no matter how big or small. Being prepared for the unexpected can help minimize downtime and get operations back to normal faster.