Also known as business insurance, or insurance for businesses, commercial insurance protects businesses from unforeseen and insurable perils associated with operating their particular type of business. While various businesses are at risk of unusual perils, there is some risk cover that applies to most companies, such as buildings insurance, equipment insurance, car insurance and liability insurance. Commercial insurance for buildings
If your company owns the building from which it operates, it should have a buildings insurance policy. This protects the building from natural disasters as well as accidental damage, such as burst geysers. It covers the actual structure of the office, warehouse or factory, and associated buildings, such as parking lots, guardhouses and reception areas. Few business can recover from losing such a large asset, which makes buildings insurance for companies all the more important. Insurers who cater for businesses will be able to add a buildings insurance policy to your commercial insurance portfolio.
Commercial insurance for products
If you require insurance for office equipment, this must be taken out under a contents or equipment insurance policy. A commercial insurance policy for products covers the goods or stock used or sold or manufactured by your business. It covers the stock while in transit and in storage. If your business is a manufacturer, commercial business insurance for products may include cover for the raw materials used to make the product.
Commercial insurance for liability claims
No business functions in a vacuum. Whether you have employees or clients, liability insurance can protect your from claims made against your business for injury, death or faulty products. The type of liability covered is determined by the policy, for example, employer’s liability insurance protects you from claims made by your employees. It covers damages (such as a medical costs) as well as claims for discrimination and harassment. It does not, however, include cover for unfair dismissal.
Commercial insurance for cars
If your company makes use of vehicles, whether they be heavy vehicles for transport, or for sales reps, the car insurance specified on your portfolio must be for business use, otherwise your insurer can reject car insurance claims made on the policy on the grounds of non-disclosure. The risk of commercial cars is higher than that of personal vehicles, which means more expensive premiums, but it’s still cheaper than having the vehicle written off and receiving no payout.
When taking out commercial insurance, discuss the unique operations of your company with your insurer to cater for extraordinary perils. |
