by Guest » Tue Nov 25, 2008 12:13 pm
You may be extremely enterprising and may have taken your business to great heights. Definitely you do not want any hindrance to your already successful business. But accidents don’t happen with a warning. To be sure you can recover from any problem to your business, getting a business insurance would be a sensible idea.
What coverage can you expect from business insurance?
Business insurance coverage is sold to business owners as a package offering coverage for both major property as well as liability risks. Some companies may also sell you separate policies. The Businessowners Policy (BOP) is a popular package purchased by mid-sized or small companies. Commercial policy packages are usually designed and purchased by bigger businesses. The Businessowners Policy includes:
- Property Insurance: The 2 different types are standard and special. This covers for buildings and any content owned by the company. There are, however, exceptions to property insurance. Find out more.
- Business Interruption Insurance: This is designed to cover loss of income as a result of disrupted operations of the business caused by fire or any other accident. This policy may sometimes also cover the extra expense that you have to bear in case you need to shift operations to a new location temporarily.
- Liability Protection: In the event that your company causes any harm to others, this policy provides protection against such an event. This harm may be bodily injury or property damage caused by defective products, service errors and faults in installation.
What can be your plan to combat disaster in office?
You do not know which employee will suffer a chest pain in your office premise, or when there will be a fire threat or any other accident. So that you and your employees may be able to combat the situation, you need to make a plan. The process is ongoing but once organized it can be a very smooth process. Take some time out to make the plan. Learn how from the steps to follow.
- Put together the address and contact numbers of local hospitals, Emergency Medical Services EMS, and nearest disaster responders.
- Store the location of important documents.
- Have the mobile and personal contact numbers of all key personnel in the company.
- Keep a list of the contact numbers of the safety contractor, fire fighters (contractors), landlords and others key personnel.
- Make a list of employees who may require special help to evacuate the office premise in case of an emergency.
- Prepare a list of doctors/nurse (if any) or anybody with special training in such a field.
- Test contacts for outdated numbers and update as and when required.
- Check whether the representatives listed in the plan respond to calls since they must be available 24x7.
- Put all of the information in one place e.g. a binder and put separate tabs for better understanding and quick searches. While doing so, consider the language all of the employees understand, whether anyone has impaired sight and any other condition. These binders must be accessible to all.
- Make sure to delegate the right disaster issue to the right person. If one person is given responsibility of all issues, he/she may not be able to attend to the tasks properly.
- A step-by-step scenario specific instruction always helps. Prepare a simple plan and test the plan to judge its effectiveness e.g. fire drills, tornado drills, test exit routes. Do not forget to get employee feedback on this.
- Get your employees involved in the disaster plan you prepare and encourage them for Red Cross first aid and CPR training. Lessons on disaster planning must be given.
- The plan must also be circulated amongst employees. This is to increase the effectiveness of the plan.
How would you insure your home business?
When you are running your business from your home, you may need extra protection for your property since you may not have enough insurance to protect it. Homeowners insurance may only provide partial coverage for your property and you may need extra coverage. There are 3 basic policies that you may choose from, in order to provide protection to your business.
- Homeowners Policy Endorsement: A simple endorsement added to the homeowners policy you own, may increase your coverage for business equipment to double. A homeowners liability insurance will be essential if there are chances that your clients or any delivery people injure themselves in your premises. This liability insurance is designed for businesses that have few visitors e.g. writers, teachers, piano teachers.
- In-Home Business Policy/Program: This policy not just provides protection for your business but most of the policies also reimburse you for conditions such as loss of important documents, accounts to receive and off-site property belonging to the business. Some policies pay for loss of income due to damage caused to your home by fire or any other accident. If you need to operate from a temporary location, this will also get compensated.
This policy may provide a wider coverage like legal responsibilities or lawsuits for injuries that are a result of products or services that you give to others. The policies in home business are available with homeowners insurance companies as well as specialty insurers. - Businessowners Policy (BOP): Covers any property that is related to business.
How would you file a claim for business insurance?
There are very simple and easy steps to be followed and kept in mind when filing a claim. In case of theft, fire or any accident:
- You must get in touch with your insurance company or may be also your agent. The police too, should be informed about the event.
- Go through your insurance policy to find out how you are covered and what procedures you must follow to get your claim.
- See that your property does not get further damage from temporary repair works. If your property needs immediate repair, you may do so, but keep the damaged parts for the adjusters to review in case they need to.
- The cost to repair your property may be huge. So try and get at least 2 quotations/bids for costs that may be needed to repair the damage.
- The income generated by the business before and after an accident is necessary for filing a claim for business interruption. Keeping a detailed record of the business process always helps. If you need to move to a temporary location, this can determine the cost to be incurred during that period.
- Discuss with your insurance agent or claims manager and get a feasible solution.
- Contact the consumer affairs or the complaint cell and explain your situation.
- Get in touch with your state’s department of insurance.
- Consult an attorney specializing in insurance related issues.
What are the things that I should know before applying for business insurance?
Posted: Tue Nov 25, 2008 12:20 pm Post Subject:
Business insurance is an essential protection in the event of claims arising out property damages, health injuries etc. There are some business operations wherein protection from errors and omissions is also important. To safeguard you from claims aimed at your business you'd need to maintain adequate business insurance coverage.
Posted: Tue Nov 25, 2008 12:23 pm Post Subject:
Hi..you should always remember to explain the different operations as well as the risk areas to your prospective carrier. This would certainly help them to measure the probable risk potential associated with your business.
They would be able to design the right kinda coverage for the future of your business. If you'd choose not to disclose all facts to your insurance carrier at the beginning, this could turn out to be one vital reason for the termination of your policy in the future.
Roddick
Posted: Tue Nov 25, 2008 12:26 pm Post Subject:
My friend,
You should not hide financial hazards that you'd faced in the past. Also, remember to disclose your wage role. This piece of information would help your carrier evaluate your business volume. They would be able to arrive at your business liability towards others. So, these simpler facts would also help you avail a better coverage for your business.
Regards,
Fatman
Posted: Tue Nov 25, 2008 12:34 pm Post Subject:
Hi, in my opinion public liability insurance is also a must for you. You'd need to cover your business from 3rd party claims in connection with property damages or injuries. You'd be safe from claims filed against your business regarding legal costs and other eminent expenses. I'm saying this, since I've seen "no win - no pay cases" would also amount to thousands of dollars. Now its your call!
Roddick
Posted: Tue Nov 25, 2008 01:56 pm Post Subject:
See...when you do not have adequate stocks it is okay for you to insure your liabilities only. But I think, you should always keep the other aspects of your business in mind. There are pretty many important areas-
* business interruption
* money support
* Repairs to furniture and fixtures
* Machinery and equipments leased
So, you see..how each of these are important for almost all businesses.
Plasticmind
Posted: Tue Nov 25, 2008 02:02 pm Post Subject:
Hi,
Another important aspect that you should know is whether you'd need landlord insurance for covering your landlord's property. This is something which would largely depend on your lease terms. If the landlord is already obliged to protect your part of the building...then I don't see any reason why you should be worried. But yeah, you'd surely need to understand the terms of the lease pretty clearly.
Crossbreed
Posted: Tue Nov 25, 2008 02:08 pm Post Subject:
But yeah, you'd surely need to understand the terms of the lease pretty clearly.
See...you'd clearly need to go through everything and make sure of what you'd need to cover on your own and what not!
In case you see that certain assets and particular parts of the shop are under your obligations...then you'd certainly need to get them covered. You could always put additional fittings to reduce your risks. These additional fittings again would have to be covered by you, since they would not come under your landlord's obligations. Pompido_alverado
Posted: Tue Nov 25, 2008 02:16 pm Post Subject:
My friend, more often than not you'd come across business insurance that speaks of theft coverage only under forcible entry!
You know why? It is quite easy for the general public to earn a stealing opportunity during peak business hours when they have unrestricted access to your business assets or entry within your business premises. So, it implies that you'd certainly be covered for opportunities that would be forcibly created (without any opportunity of negligence on your part..) Just think of it now!
Mermaid-attitude
Posted: Tue Nov 25, 2008 02:24 pm Post Subject:
Hi, in my opinion public liability insurance is also a must for you.
Always remember, that this public liability coverage is meant to cover for the damages caused to the public due to any negligence caused on your part. But all your errors and omissions would have to be taken care under your professional indemnity insurance. Even for any defected workmanship, a public liability policy won't stand as a guarantee of your effective operations.
Posted: Mon Dec 01, 2008 08:14 am Post Subject:
if you are very true and clear with the financial underwritings of your firms,having evidences for the past record of the firm and not any lawsuite against you is going on in any court then definately it will be a easier process for you to have this insurance. 8)
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