Commercial Property Insurance That Is Overlooked and Considered Miscellaneous

There are some items on your commercial property checklist that is more miscellaneous in nature but still should be considered in your overall risk management thought process. Fixtures and furniture is one of those items as is mobile property.

Usually as a tenant in the building most tenants typically do some modifications of the fixtures or add their own custom built-ins to the building. Unless the fixtures are mobile in nature they typically are considered built-ins. At the end of the lease it is usually very difficult for the tenant to take the fixtures with them as it can cost more to disassemble them than to just leave it. The tenant improvements and betterments then become the property of the landlord. Most businesses tend to ensure their furniture but might not be aware of the inherent value of the fixtures and they might not be providing the appropriate coverages for the fixtures.

The premiums for contents are much higher than the premium for building coverage as a composite rate per thousand dollars of value. What that means for you as the client is that providing coverage for fixtures is very inexpensive as compared to the insurance premium for the contents portion as you can include the fixtures as part of the cheaper building premium. Fixtures and furniture's should go hand-in-hand with your commercial property checklist of miscellaneous coverages to be on the lookout for.

Mobile equipment is also another item to be cognizant of when insuring your property. Property that is mobile and transitory in nature can sometimes be elusive in your consideration for providing protection for these items. Usually for mobile and transitory contents you will need special coverages that are normally not provided in the typical commercial property insurance policy. Because the contents are mobile and transitory by nature there are unique perils and circumstances that are involved that are typically not present with fixed items that are in a building or warehouse.

Various entities can have access to this mobile property and there will be unique loss exposures but come into play that would require unique coverages in order to offer the protection that is needed. Items that are off premise can be used by the employer, the employees, clients, and a host of others that can put the property in a place of exposures to loss. Property that is in the care, custody and control of others opens up multiple liability issues by law and by contract. It is common to use what is called an inland marine policy to adequately cover these types of transitory contents. Your basic property insurance policy is not going to provide the breadth of coverage that is usually needed with regards to mobile commercial property.

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How to Match Your Insurance Policies to Your Potential for Damages

Most businesses purchase insurance policies without first considering what potential for damages they are facing. Matching insurance policies to your potential for damages is a better approach than just purchasing insurance policies.

Loss potential for damages can be better assessed by analyzing the components of the loss potential for claims or damages. You can usually classify these into 3 categories of: types of exposure, the types of causes of loss and finally the damages and results of a loss.

The first element is the type of exposure that we are dealing with. Normally a loss exposure can be damages to your employees, damages to your revenues, damages to your buildings and contents, and finally legal liability damages.

The types of damages or perils that the exposure is subject to can be quite lengthy. Some usual perils include such things as fire, theft, explosion, bodily injury, property damage, termination, death, illness, disability, embezzlement, fraud, employment practices, professional liability, to name a few. Finally the consequences of a loss need to be considered whether they are financial, reputation, or marketplace setbacks in market share.

There are some basic risk management techniques you can use in dealing with potential for damages to loss.

The first technique is that of avoiding or deleting the exposure to loss in its entirety. If you have a troublesome exposure, such as a location that is uninsurable, you can eliminate that exposure by selling or getting rid of the property. Another technique is to avoid the potential for a claim by never entering into problematic loss potential in the first place. While this is a 100% solution to eliminate your loss exposure it might not always be practicable or feasible based upon your business situation. Loss prevention is another strategy to help reduce damages. Using non-slip floor coverings, dead bolt locks, alarm systems, etc. can all help in preventing claims. Loss reduction by implementing such things as having smoke alarms, sprinklers in the building, etc. can all help reduce the potential for total loss of buildings or contents.

Loss potential for damages for any business need to be thoroughly analyzed before any purchase of insurance is contemplated. Doing your homework before you go out into the market place to buy insurance protection is more efficient and effective in the long run. Purchasing the wrong policy or not purchasing coverages that match your exposure to loss and leave huge gaps in coverage which can create enormous damages for your company.

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Getting Government Discounted Capital? Protect Your Investment With Business Insurance

It's well known among business analysts that it is the SME sector that really drives the economy, offering more jobs and eventually, becoming large enough to pay larger tax volumes for the government to hopefully reinvest in other economic initiatives.

To help the SME sector out and to hopefully fuel further growth, the government as backed a scheme to promote cheaper lending to SMEs. This is now known as the National Loan Guarantee Scheme; where the banks are encouraged to reduce the cost of their loans to smaller businesses in exchange for a government guarantee on the loan amount; often resulting in a decrease of 1% on standard bank lending rates.

The UK government has already fronted £5 billion for the scheme, with a view to offer a further £20 billion over the next two years. Whilst useful for giving SMEs the capital required to stay afloat in these turbulent times, or even to expand, a loan is still a business risk.

The result has been a surge in Business Insurance policy buying; where business owners are doing their best to protect their company and their investment. The problem here however is that many of these business owners have little expertise in choosing a business insurance policy; much of their time is dedicated to running their business, understanding the industry and dealing with day-to-day management, so their understanding of the business insurance industry and the kinds of cover available is likely to be limited.

As with any service that is outsourced, it is good to consult with an expert in the field who's working hours are dedicated to understanding and sourcing exactly what it is that you want. Whilst a business owner can wear many hats, they cannot be an expert in everything. So in the case of those businesses that manage to secure government backed capital, consulting with a specialist Business Insurance Broker would be a good way to ascertain precisely what cover the business needs, whilst identifying activities the business can undertake to further reduce their risks.

Unlike with off-the-shelf insurance policies, a Commercial Insurance Broker can tailor your insurance policy so that you only pay for the cover that you need. An off-the-shelf policy however may cover some of the bases to excess whilst wholly neglecting other parts that may be vital to your business. The problem is that you may not know what cover you truly need, until you need it; by which point it's too late if the policy you bought online can't help you.

So, if you want to manage your business risks effectively, get some outside help and speak to an experienced commercial insurance broker to find out how you can cover yourself and your business against catastrophe.

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What Are The Different Types Of Fleet Insurance?

Fleet insurance is basically a type of commercial insurance that gives coverage for all vehicles owned by a company. This way, the policy holder can have the same coverage for all the vehicles, or if they choose to, they can customize coverage based on specific needs. The vehicles covered do not necessarily have to be the same in make and model in order to be insured.

The coverage policy of fleet insurance will depend on your particular business needs.

Comprehensive and basic liability insurance is the most that you can get out of any insurance offers. This insurance is inclusive of repairs and medical expenses demanded when an incident involving any of your vehicle and driver occurs. Sometimes, insurance companies will offer coverage that temporarily replaces a vehicle when one of your own cannot be used. This type of policy will obviously cost more, but nonetheless, the offer is very well worth it.

In liability coverage, the coverage only includes the other party in an accident. If an accident is found to be at the fault of your driver, insurance covers the other party's medical needs for injuries and repairs on the vehicle only. Your driver and your car will have no coverage. This is a much cheaper option for those who own the vehicle with completed payments and paperwork. However, for those who have vehicle that are still being loaned, the lender will usually require the comprehensive type of insurance.

No matter what type of coverage your vehicle gets, it is important to purchase a roadside assistance policy. This is useful in the event of accident or vehicle breakdown in the middle of the road. The service includes mechanical help and towing when needed.

Driver Requirements

Fleet insurance companies will only provide coverage when an individual with proper license is driving the vehicle. Aside form a standard driver's license, a commercial driver's license is also required. To further keep your insurance cost down, let your drivers attend driving seminars and drivers education classes. The insurance company will look into this and can see your drivers as low-risk individuals in terms of insurance claims.

Keeping Costs Low

There are many things you can do to get a discount. Aside from the previously mentioned driver education classes, you can hire drivers who have more experience in this type of job. Young, inexperienced drivers are usually seen by the insurance company to be high-risk.

You can also safeguard your car by installing an anti-theft device. It is not an alarm system, but rather it uses a coded key that allows the vehicle to shut down when the wrong key is used. Having this type of protection for your car is another way to cut down vehicle costs.

The most common discount you can avail is the multi-car discount. This is offered by insurance companies to businesses who want to insure a large number of vehicles.

The vehicle's size and the type of activities it performs are factors that influence the cost of the policy. Ask a licensed insurance agent how to get further discounts to cut your costs.

Fleet insurance is an important part of owning company cars. Covering all your vehicles will save you a considerable amount of time and money.

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Important Considerations While Choosing Business Insurance

Business insurance is a comprehensive package of individual insurance policies intended to safeguard the property, people, and operations of a business from unforeseen losses or damages. Business insurance is not static for every business and hence the policies included are subjected to change based on the size, type and the risks involved in the business. Hence, every business owner needs to look at different aspects of the business before taking insurance.

This article gives a basic idea on what all a business owner needs to consider while insuring his business, which aids in choosing a better policy that perfectly covers major risks associated with his business.

Policies that are required by state laws: To protect the rights of the employee/employer/public many state governments have made some mandatory business insurance policies for different businesses. So, while looking for business insurance, the buyer has to start with the policies that are required as per his state's statute. For instance in UK, policies such as employers' liability insurance, motor vehicle insurance, professional indemnity, etc., are mandatory. However, the laws may vary based on the state and the business type. So, business owner needs to check the state laws and the policies which are applicable to his business before taking the policy.

Protection of the business property: After considering the compelled policies, the buyer now needs to look at the possible risks/dangers/hazards/accidents that might cause significant harm to his business property. Building, vehicles, goods, stock, machinery and all other office equipment are different things which enable the business to perform various operations. Any damage to them not only causes significant financial loss, but also results in business interruption. Hence, they should be insured properly. Insuring the property which is vulnerable to risks that are specific to business type is very important.

Liability claims: The present society is highly litigation prone - if any injury happens to a person due to the negligence of the other party, the first phone call goes to a lawyer, instead of a doctor. So, any case filed against the business either by the public or the employee claiming for the compensation for the damage creates additional burden and also affects the reputation of the firm. Hence, in order to avoid such cases, including liability policies like public liability, workers' compensation, auto liability may help the business to survive.

Personal risk coverage: While assuring protection to the business operations, public and employees, it is also necessary for business owner/partner/director to take personal protection cover. An executive coverage which protects the directors and the officers from any personal litigation or any other harm caused while managing the business should also be considered as a part of business insurance policy.

Now that we are clear on what are all the major aspects we need to consider while taking business insurance, the next step would be to approach a company which can suggest a best possible policy that extends its cover to all the major risks that might affect your business.

Instead of directly approaching an insurance company, it is advised to approach a reputed insurance broker as he may help you in assessing the risks and assist you in choosing the amount of cover required, besides directing you to the best insurance company.

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Insurance Terms and Phrases

Many insurance terms and phrases are unique to the insurance industry. There are a myriad of definitions within insurance policy defining what the words and terms mean within insurance policy. Terms and words that are not defined within the contract usually take on their ordinary meaning within society. That means the everyday common language; it's ordinary and culturally relevant meaning. Any phrases or terms that are of a technical nature would be defined within that industry, such as technology, legal, or the medical field. Sometimes words have been defined within the community, court cases, and common law. Some words have even been established by law. Insurance carriers that are regional in nature tend to have regional nomenclature within their definitions terms and words in order to be culturally relevant to their geographical areas that they're providing coverage for.

Most of the terms and verbiage within insurance policies throughout the nation is usually designed by the nonprofit company called Insurance Services Office. That way we do not have 2,000 different insurance companies defining the same word for accident. Most of the insurance companies subscribe to the Insurance Services Office in order to obtain their forms and contracts and definitions of insurance terminology.

The most important definition within the insurance contract is what is called the insuring agreement. Usually this is a broad statement whereby the insurance company agrees to pay claims for the insured and the insured agrees to pay the premium when due. There can be multiple insuring agreements within the contract if there are multiple coverages within the policy that are being purchased. Typically the insuring agreement clause states that the insurable pays the premium and insurance company pays claims based upon the coverages they have purchased. If it is a workers compensation policy, then you would have to go to that particular states insurance codes and regulations which could be hundreds of pages long to see what kind coverages are being provided by law.

Over the past 25+ years changes to the most common terms of all risk and comprehensive coverage have been redefined primarily based upon case law. Since technically it is really an oxymoron to say that a policy is all risk because there are always exclusions and limitations. There is never has been a policy that covers everything. Usually in today's insurance policies the three basic terms that are used to defined property coverages are basic, broad, and special. We will define these terms in a later article.

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