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Your Stock is the Life-Blood of Your Business

Many businesses are dependent on their stock; without inventory, there can be no sales, and without sales, there is no income, so insuring one's inventory can be critically important. Depending on the type of business, a wide array of products and quality stock could be at risk from unforeseen disasters such as fires or flooding. So, it makes good sense to take out a commercial property insurance policy covering the entire range of your inventory. 

Keeping Up-to-date: Time to Reassess?

And that is precisely what many businesses do; however, not all of them properly reassess their needs when renewing these policies. Has your stock changed in any way? Is there more of it? Less? New products? Has the business grown since the policy was initialized? It’s wise to keep track of what an individual property insurance policy actually covers, and keep it up-to-date as your business grows and changes.

For example, a business originally set up to repair electrical items may have more recently found an ideal niche for selling electrical items to customers. The original policy that was set up would have been sufficient at the time, and was suitable to cover the spare parts the business needed to make repairs, but now it has a much larger inventory of products which it is also selling, which may not be covered under the original policy.

In much the same way, a business could change the way it conducts its services. The original commercial property insurance policy could have been set up just to cover a shop and its products within. But since that time, the business could have started doing home deliveries, in which case the products in-transit en-route to the customer are not covered by the out-of-date policy.

Be Vigilant With Your Inventory Insurance

The lesson here is to always check the small print. Businesses should regularly be aware of any changes they make to their business and be aware if it affects their policy in any way. This also includes things like seasonal changes – businesses may stockpile before Christmas or Easter. Insurance policies should cover these stock rises at specific times of the year. 

Contact the Insurer - Get the Right Insurance for Your Commercial Property

If a business decides it does not have sufficient coverage, or there is a liability gap somewhere in the policy, they should first contact their insurer. It’s very possible the insurer could adjust the policy with little or no hassle, without any complicated papers to fill in.

If, however, the insurance company is unable to cover any changes to a business, the best course of action would be to search for a new commercial property insurance policy covering all the new needs of the business in question. It’s very important to make sure these types of property insurance policies are sufficient for the specific needs or your business. 

Need Help With Your Commercial Property Insurance?

Please call or email us any time for help. We'll guide you through the options and help you find the perfect business insurance coverage to meet your needs.

What is Commercial Property Insurance?

In a nutshell, it’s a type of insurance policy used to cover a commercial property, which spans a broad spectrum of business environments and situations.

Commercial property insurance protects a property in much the same way as domestic property insurance would, and financially protects against perils including fire, natural disaster, and theft, paying out for any losses or damages to the property.

Commercial property insurance is widely available and most commercial properties will carry it, including most manufacturers, restaurants, retailers, charities and non-profit organizations, and service-oriented businesses. In addition, these businesses are usually able to write off the cost of their commercial property premiums as expenses.

Additional Commercial Property Insurance Policies

There are many more additional coverage plans available to purchase for a business property, meaning owners can generally tailor these packages to suit their individual business needs. The most common are:

Boiler and Machinery Insurance

This type of insurance is also referred to as “equipment breakdown” or sometimes “mechanical breakdown coverage”. It provides cover in the event of an accidental breakdown of machinery, boilers, and equipment, and will pay for any repairs or replacements needed, as well as reimbursing for property damage; an example of this would be fire damage to computers.

Debris Removal Insurance

This covers the cost of clearing up debris from a property after a fire, tornado, or flood. For example, in the worst case scenario, a property has been burnt to the ground, leaving a pile of ash and debris which has to be cleared up before any more steps can be taken – this costs money. Property insurance will cover the cost of rebuilding, but debris removal is a whole other ball game.

Builder's Risk Insurance

This type of coverage will protect a property while it is being constructed, from things such as wind or storm damage. Partially-constructed buildings are particularly vulnerable to weather conditions so it is wise to take out a builder’s risk insurance policy.

Glass Insurance

This covers any broken windows or plate glass windows, shop displays etc.

Inland Marine Insurance

Inland marine insurance is used to cover property in transit and property on business premises that does not belong to the business owner; for instance, fire damage in a dry cleaning business.

Business Interruption Insurance

This type of insurance will cover any lost income a business faces when it is unable to operate due to property damage, or loss. For instance, a flood could halt a business for two months – business interruption insurance would pay for rent, taxes, salaries and net profits during that time.

Ordinance or Law Insurance

Ordinance or law insurance will cover demolition and rebuilding costs once a building has been partially destroyed. The general rule is, if more than 50 per cent of a business needs to be rebuilt, it should first be demolished and then rebuilt, staying true to current building codes. Standard commercial property insurance will only cover the cost of replacing the building, and does not cover upgrades.

Tenant's Insurance

Tenant’s insurance is common for commercial leases. Renter’s commercial policies usually cover any damages to improvements made to a rental space, along with any damages caused to the building from employee negligence.

Crime Insurance

This type of insurance will cover robbery of money, burglary, theft, stock, securities and fixtures from outsiders and business employees.

Fidelity Bonds

A bond company can cover any losses caused in the unlikely event of a bonded employee's theft of business money and/or property.

Commercial Insurance Questions?

We're happy to help you with all your insurance needs for both business and home. Should you have questions about the right Commercial Property Insurance for your business, please contact us.

Understanding Commercial Insurance Can be One Tough Job!  

Being a small business owner today is a tough job!  Between rules and regulations, licenses and taxes, and banking and commercial insurance, it sometimes seems you need your own board of directors just to help manage your business!

At American Insuring Group, Small Business Insurance is our specialty.  We can help you, the business owner, understand not only what commerical insurance protection your company needs, but also what business insurance is required of you to satisfy legal requirements.

Our office represents over a dozen "A" rated general insurance companies that specialize in small business insurance and we have access to dozens more specialty commercial insurance companies that fill specific small business insurance needs for our clients.

So How Many Types of Liability Insurance Are There?

The commercial insurance needs for a business owner can be daunting.  First, there is Public Liability Insurance that is a must to protect the business from lawsuits and claims for injuries or property damage to others.  But Public Liability Insurance isn't that simple.  What type of liability insurance protection do I need?  Is Premises Liability Insurance enough?  What if I leave my business location and go to someone else's home or business location?  Does my Liability Insurance cover me there as well?  What about when I finish a job and leave?  Do I have Completed Operations coverage if sometime later, after the job is finished, someone is hurt by my work or property damage is caused?

Are you a business owner who makes something, sells something, or just handles products someone else makes?  Do you have Product Liability Insurance coverage included in your General Liability Insurance coverage?  What if you harm someone's reputation or cause someone to lose sales, and they look to you for compensation? Personal or Advertising Injury Liability coverage protects the business owner from these claims.

What if an employee claims that you fired them under false pretense?  Or they make an allegation of harassment against you?  Employment Practices Liability Insurance is the protection that any business owner who employs someone must have to be protected.

There are many extentions of Public Liability Insurance the business owner should understand and use to be protected from the unexpected.  At American Insuring Group LTD., our licensed agents have the understanding and experience in Commercial Insurance to help you determine your insurance risks and to identify the insurance solutions to properly cover your businss. 

Workers Compensation Insurance - Are You Operating Legally?

Then, there is Workers Compensation Insurance for the small business that employs people. Most states require the business owner to cover employees for work related injuries.  What if you are a corporation without any employees?  States consider a corporation to be its own entity, and even you, the owner (officer), are considered an employee. Therefore you must either have Workers Compensation Insurance coverage or have the proper exclusion paperwork filed with the Department of Labor and Industry. At American Insuring Group, our licensed staff can help you with all the forms necesasary to be legal. 

Not only does Worker Compensation Insurance cover medical bills and lost wages for employees who get hurt during working hours, but there is a second business insurance coverage that is included with most policies.  Employer's Liability Insurance covers the business owner if an employee presents a claim against his employer for alleged negligence for his injuries.  An example of this is an employee who cuts off his finger on a machine.  Workers  Compensation Insurance would pay medical bills and lost wages, but if he claims the business did not properly maintain the equipment and now he must live life without a finger, the business owner would have protection from such a lawsuit under Employer's Liability Insurance.

Liability Insurance and Worker's Compensation Insurance covers only some of the insurance needs for the business owner. Other types of coverage include: Property Insurance protection, Van Insurance for your business vehicles, Umbrella Insurance for excess insurance protection, Bonding for the contractor's needs and Group Medical Benefits for your employees.

We Can Help You Make the Right Liability Insurance Decisions for Your Business

At American Insuring Group LTD, we take the time to understand your business so we can make sure every exposure to risk is discussed and covered by our small business insurance policies.  Call us today at 800-947-1270 or email me at david@aigltd.com. I would love to meet or talk to you and help you understand your business insurance needs.  If you already are covered by insurance, a second opinion may often uncover coverage gaps or missing insurance coverage that is needed.