This form of coverage in business insurance has jumped into the spotlight due to the recent problems with recalls of products (well toys for most part) that were mainly sub-contracted to a foreign country. This form of coverage was not normally given attention in the past but for the benefit of retailers, convenience stores and wholesalers giving them protection from possible lawsuits for faulty products that they have sold but not manufactured themselves. The recent successive recalls of several toys that were faulty in design and used substandard materials highlighted the need for such protection when angry customers came into retail stores claiming damages in its many forms and shapes.

As we have said, Business Insurance takes many forms and shapes and here are some of the most basic coverage that may be included in most policies. Property Insurance is protection of property (which is usually a building or some other structure and it’s contents) this is to prevent the loss to your company incase of equipment loss due to crime and other factors. Business interruption covers the loss of the company’s ability to produce products due to fortuitous (unforeseen events either by man or nature) events and the last would be liability protection which covers all liabilities your company towards others outside the organization. The last can cover the results of any defective products or failed equipment and flawed installation and many others.

Get to work with your agent so you get the best possible coverage for you and the vehicle (most company’s get volume insurance for their service fleets). If you just happen to be the business owner you must specify the details of the vehicles use so the insurance company has knowledge of the dual role the vehicle plays both for the business and your own use. Remember, there are distinct differences between personal and commercial vehicle insurance policies so do ask your agent for they vary from provider to provider. There are also very strict state and federal government requirements regarding auto insurance so get yourself protected from hefty fines and even jail time by getting enough coverage.

Commercial auto insurance sounds basic enough and looks simple that it is very much similar to personal auto insurance you have for your car. There is in fact a huge difference for most companies have service fleets that they give company vehicles to their people for use making the company’s car also serve for personal purposes. This kind of complicates things a bit for regardless of who is using the vehicle, the fact that the primary owner of the vehicle (the guy who bought it) is the company, it becomes official office property even when the vehicle is being used on weekends or after work for personal purposes. On the commercial vehicle insurance policy, the primary insured should be the company and not you so no problems arise when a claim is to be filed with the provider.

Yep, there is such an insurance product though not widely publicized due to an undesirable effect of getting the crime on a sudden upsurge due to the huge amount of money that can be made from it. This form of insurance may be optional for private individual insurance policies but is mostly standard for business insurance. It has its limitations though, for it only covers the costs of the ransom and negotiations but any transaction (ransom) paid outside of the policy cannot be reimbursed for apparent connivance reasons. This gives business enough buffer to negotiate for, say the kidnapping of a VP or GM assuring they have the right resources to obtain their release(however absurd and crazy it may seem).

Asides from the basic coverage and add-on’s there are certain policy enhancing measures offered called umbrella policies that can take care of excessive needs. For example your facility or manufacturing office is damaged by an earthquake and there is a need to tear down the structure, the basic policy can cover some losses in terms of equipment and add-on coverage for earthquakes takes care of the rest. But if the damage is so severe that your needs or prescribed limits have been exhausted, the umbrella policy takes over giving another layer of protection. It will cost you more in terms of premiums and it would surely add to the demands on your already streched cashflow but with uncertain economic conditions, better to be prepared than sorry.

That is a magic number that eludes many business owners who either find they are severely underinsured and today’s economic outlook is not painting a nice picture. With inflation taking hold, the purchasing power of money lessesns as economic conditions fail to promote growth of businesses. Having to settle with the fact the having insurance is enough to give you at least some peace of mind should be accepted for tommorow may brings further uncertainty to the business and your future. Insurance if its there would provide some releif from the pressures of having to deal with problems in the business preventing you from sacrificing more.

This type of coverage may be part of business interruption but being a natural disaster that is unforeseeable, you need this type of additional coverage to file a claim for damage to your building that results form earthquakes.
Terrorism, the most over used word in today’s business sector that is defined by the Terrorism Risk Insurance Act way back 2002 that allows coverage of damage resulting form such acts. The special coverage offered by these additional options are to expand the safety net so to speak for your business due to increased risks in this day and age. Hopefully more and more will benefit such measures especially businesses but with people finding it very hard to get even the basic health insurance for themselves, the future of businesses are really bleak due to the prevailing economic slowdown.

You can purchase the ordinance or law coverage which ensures you get help in paying for the tearing down and rebuilding of the structure should the need arise. For earthquakes, there is a totally different type of special insurance that allows coverage but you need a commercial property earthquake endorsement form government agencies to avail of the additional coverage. Like most types of insurance, there is a certain amount that has to be shouldered by the insured before the insurance covers the exceeding exceptions. If you want to save a bit but still get the necessary disaster coverage, try to negotiate a higher deductible rate so your insurance cover is less, less premiums.

There are general exceptions to certain disasters that won’t cover floods, earthquakes and acts of terrorism in both home and business insurance. But saying that doesn’t mean that you cannot get protection from such events which may be purchased as options added to your basic policy. For floods, check with government and bank if the area where your business is located or to be located has been subject to floods, be sure to ask your insurance agent of such eventualities or contact the National Flood Insurance Program for more information. There are special building codes that have to be applied to areas considered to be on a floodplain that dictates any building or structure that sustains more than 50% in damage must be torn down.