Risk is always present when business activities are undertaken. As a business owner and manager, your job is to reduce this risk to the lowest possible minimum. One of the most effective ways for doing this is the purchase of business insurance. The coverage which you buy must have several important qualities. One of them is comprehensiveness. The more comprehensive your protection is the lower the risk for your company is.
Commercial Asset Protection
In order for business insurance to be comprehensive, it must provide protection to all of your commercial assets including buildings, equipment, materials and ready-made products. It is essential for your assets to be covered against as many perils as possible. The list includes fire, theft, vandalism and natural disasters. Just make sure that the perils are clearly defined in the policy agreement and there is no confusion.
It is best if you cover your cash flow as well. This is done through the purchase of a business interruption cover. It is designed to help you maintain your cash flow in case your company is hit by a peril and cannot operate due to this. In this situation, the insurer will pay all of your fixed costs such as rent and lease instalments. They will also assist you financially with restoring your operations. If this is not possible, they will provide compensation for your loss. This type of cover can literally salvage your company so it is highly recommended for business of all sizes and in all industries.
It is mandatory for every company to be covered for liability under its business insurance policy. You must obtain either product liability cover or professional liability cover depending on whether you sell physical products or services. The cover will protect you in case a client makes a claim for compensation for property damage of bodily injury against your company.
You will also need public liability cover. It is designed to protect you in case members of the public, who may or may not be your clients, make a claim against you for property damage or bodily injury. For example, if a visitor to your office slips accidentally and suffers an injury, he can make a claim for compensation. If the court rules in his favour, then the policy will cover the compensation amount.
Finally, in order for your business insurance policy to be truly comprehensive, you will need commercial auto cover for all of your business vehicles. The auto insurance covers the liability of the drivers and protects the vehicles against perils.