Commercial insurance is a financial instrument that covers a company’s losses due to emergencies or natural disasters. It comes in several types.
Property Insurance
Commercial property insurance covers a building’s structure along with the contents, such as internal equipment and inventory.
Business Interruption
This often overlooked policy type covers financial losses when a business must be shut down due to disaster.
Extra Expense
Business owners can purchase a policy that covers additional costs that may be incurred in a disaster, like renting temporary office space or replacement equipment.
Valuable Papers
Some policies cover essential documents like contracts, blueprints, or personnel files that can be destroyed in a disaster.
Cyber Insurance
More business owners are now selecting policies that cover losses from things like data breaches, identity theft, and cyberattacks.
What Does Commercial Insurance Usually Not Cover?
A standard commercial insurance policy generally does not cover events such as:
- Floods
- Earthquakes
- War
- Normal wear and tear
- Insect damage
- Employee theft
- Intentional fraud
- Cyberattacks
If your business is in a location or an industry that is vulnerable to any of these incidents, consider purchasing add-on coverage.
Steps for Ensuring Your Business Has the Right Coverage
To maximize the effectiveness of your commercial insurance policies, take the following steps.
Assess Your Risk
Take time to inspect your property and find parts that may be exposed to significant risks. Perform preventive maintenance on items that might need to be fixed.
Review and Update Your Policies
Every few months, take a closer look at your policy to ensure it’s updated. Consider recent changes in your business to identify potential coverage gaps.
Get Add-On Coverage if Necessary
Look for any exclusions in your commercial insurance policy and explore taking out additional policies to cover these incidents.
Make a Plan for Operating in a Disaster
Have a clear, well-thought-out plan for staying afloat after disaster strikes. Stock up on survival kits with water, first aid equipment, lights, and other necessities. Test your systems and get essential equipment, such as backup generators and water purifiers.
Find Out More About Your Options
Commercial insurance helps thousands of small businesses when unexpected disaster strikes. When sufficiently covered, a small business can make a quick recovery, protect its most valuable assets, and stay afloat during times of crisis.
Warrior Insurance & Services Group: Protecting Small Businesses From Disaster
Warrior Insurance & Services Group can help get your small business the protection it needs during adverse circumstances and disasters. To get a commercial insurance quote, stop by our offices or contact us online.
