There is no denying the fact that success of a company depends upon the hard work of the team but one disaster can wipe out your efforts and bring down the profits to dust. Thus, to avoid this kind of instance, you need to insure your business, while it’s a large corporation or a modest enterprise.
There are insurance companies, which have policies that combine protection for most major property and liability risks in one package. You might also choose separate coverage. Such a policy is known as a business owners’ policy (BOP). Larger companies may purchase a commercial package policy.
BOPs contain property Business Insurance Company for equipments and buildings owned by the firm. Income due to disruption of operation and business because of accidents like fire can be insured under the Business Interruption Insurance, if there’s any loss of it.
There are liabilities, which insure the company’s legal obligation for the damage it might cause to others. It is the result of your firm’s failure. It can also be the bodily injury or property damage caused due to defective goods, faulty installations and blunders in services supplied.
However, BOPs don’t cover automobile insurance professional liability, worker’s compensation or health and disability insurance. Different coverages are needed for vehicles professional services and workers. Normally, earthquakes, floods and terrorist attacks are not covered in the business insurance.
Protection Against Flooding Damage
You have to definitely go for a policy, which provide coverage against flooding, in case your workplace is in the flooding zone area. Try to discover if flooding in the past had hit the place. Be certain to do something in advance to make up for the loss. You may face trouble.
Earthquake is also not included in most property insurance policies for example company owners and homeowners’ package policies. Commercial Property Quake Sanction or specific Earthquake Insurance Policy can cover you if you reside in an earthquake-prone region. However, earthquake policies have deductibles that are different.
Business Interruption Insurance, which reimburses you for the lost income during a shutdown, applies exclusively to the damage covered under your company property insurance policy. There will not be compensation for the loss caused due to the close of company because of the quake. For it, you should have a quake coverage policy.
In the US, loss due to any terrorism is insured merely for those companies that have optional terrorism coverage. It comes under the Terrorism Risk Insurance Act 2002. Still, there are exceptions in workers’ compensation, which include injuries and deaths due to acts of terrorism.