What Is Commercial Insurance?
July 26th, 2010 | 
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Are you new in business? Or perhaps have been running it for years? Whether it’s a new one or already existing, you need to make sure you know how to protect it. If accidents happen, are you ready? Are you protected?
Commercial insurance is an important protection from theft, property damage and liability. It is your protection against large out-of-pocket expenses. It also provides coverage for business interruption and employee injuries.
There are a lot of types of insurance yet here are the most popular ones: Property insurance, general liability and worker’s compensation. Get to know more about these common types to ensure that the business you’ve started to grow will be protected.
Property insurance pays for losses or damages to real or personal property. It protects against physical damage or loss in the case of theft or other catastrophes. An example, property insurance would cover fire damage to your office space or business. It would also cover damage as a result from earthquakes floods or demolition.
Although it is not limited to these damages, you can also get additional coverage that would suit your growing business needs. These are additional coverage for your business property: Boiler and machinery insurance, debris removal insurance, builders risk insurance, glass insurance, business interruption coverage, ordinance or law insurance, tenant’s coverage, crime insurance and fidelity bonds.
Boiler and Machinery insurance is also known as equipment breakdown or mechanical breakdown coverage. It provides coverage for the accidental breakdown boilers, machinery and equipment. With this kind of coverage you can get reimbursed for property damage and business interruption losses.
Debris removal insurance is exactly what you think it is. It covers for the cost of removing the debris after a fire, flood, earthquake or windstorm. Your regular property insurance may cover for the costs of the rebuilding, but not for the removal of the debris.
Builders risk insurance will cover buildings while it’s on the construction phase. Glass insurance would cover broken store windows and plate glass windows.
Business interruption coverage covers losses that result from property damage or loss. This insurance would pay for salaries, taxes, rents and net profits that would have been earned during the time it was closed.
Ordinance or Law insurance covers any demolition and rebuilding costs if your business comes into violation of code when your building (about 50%) has been destroyed. Tenant’s coverage would cover negligence on the part of your employees on your property.
Crime insurance on the other hand, would cover theft, burglary and robbery of money, securities, stocks and fixtures from employees and outsiders. Fidelity bonds would cover losses due to an employee’s theft of business property and money.
We also have liability insurance. This covers injuries that you cause to third parties. If somebody sues you for personal injury or property damage, this type of insurance will cover you for the cost of defending and resolving the suit that may arise.
There are 4 specialized kinds of liability insurance. They are as follows: Errors and omissions insurance, malpractice insurance or professional liability insurance, automobile insurance and directors and officers’ liability insurance.
Errors and omissions insurance is covered when the act is an accidental error and not just because of poor judgment or intentional acts. Malpractice insurance is commonly known as professional liability insurance, will pay for losses resulting from injuries to third parties when a professional’s treatment falls below the profession’s standard of care.
Commercial automobile insurance covers the cars, vans, trucks and trailers u [removed][removed] sed in your business. This covers damage, theft or if the driver injures a person or damages a property. Directors and officers liability coverage covers any lawsuit against the directors and officers of a company.
Lastly, there is the workers’ compensation insurance. This covers you for your employees on the job accidents or even death. Some state laws require businesses with employees to carry some type of workers’ compensation insurance. Most of the time, workers comp prohibit the employee from bring a negligence lawsuit against an employer for work-related injuries.
If you would like to take care of your business, make sure that you are covered. Whether its property, general liability or workers compensation insurance. Business and commercial insurance go hand in hand as this is a necessary investment for you and your company. It is also important to know the insurance agent or broker that you can depend on when these trying times arise. Just like any business transaction, buying commercial insurance should be done with care. Check the insurance company or broker if they’re registered with the Better Business Bureau. If they’re graded A+, the better you can rely on them.
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Help answer the question about insurance
How much is malpractice insurance for neurosurgeons by state?I need to know the average malpractice insurance for neurosurgeons in different states.I want to practice in a state where the insurance isn't so expensive.I live in NYC and here,the insurance is almost $100000.I prefer going to another city than giving all that money for the insurance.I never had any problem in my career and I don't need this type of insurance. Can you help me?
PS. I am paid very well,but I don't like spending money on things that I don't need.
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Commissions are all about the same, except for workers comp which stinks for the work you have to put into it.
The big key is, finding a niche where you ALSO have a market happy to write it. Many carriers won't touch a hotel/motel. Many won't do gas stations. Pizza shops are too small, manufacturers can be high hazard. Printers are high fire hazard. Governmental entities are hard to place, and there's extreme competition, plus they get shopped out every year.
It's hard for someone ELSE to suggest a niche market that you can work in. What has worked for ME, is the video/televison production area. LOL DON'T ask me to share my markets with you!! You'll have to dig up your own, and build your OWN relationships with the underwriters.
Whether a PAP (personal auto) or BAP (commercial auto), the same rules & laws applies when resolving auto claims. The only difference is the amount of liability carried by each…BAP's are generally much higher than PAP. So to answer your question, NO a commercial carrier will not "replace" your totaled out vehicle. Both carriers have a duty to settle claims fairly & do their best to keep their insured out of court.
As for the settlement of a total loss….the law states if it's cheaper to total the car than repair it because the repairs exceed the value of the car, then the car must be totaled. Financially it doesn't make sense, whether it's your neighbor paying or some company with deeper pockets than your neighbor. You do have the option to "retain salvage," where you keep the car & you receive the value of your vehicle less the salvage amount. At that point you can pay to have it repaired if you want but the insurance won't give you additional money during the repair process to pay it b/c you have been compensated…you do not get to benefit from both.
My professional experience with commercial carriers has been they penny pinch right down to the last penny, and rarely ever do they directly pay a claim without it going thru subrogation first. On the rare chance they have stepped up and taken the repairs on first hand they have been slow to respond, slow to issue payments.
If your car is a total loss, have BOTH carriers provide you with a t/l offer and go with who ever gives you the higher amount.
It would be a real estate lessors risk policy.
Most companies dont insure vacant buildings, so youd probably have to get it once you have tenants there, or at least an agreement showing that you will be getting tenats.
You need to give property information: year built of warehouse, square footage, # of stories, alarm?, sprinkler?, roof type, garage/parking style, type of tenants, estimated annual income/rents collected,
corporation/individual business? building updates?
If you are closing escrow, you can have the insurance company bill the escrow for the premium for the first year.
haha can you imagine being the person on the other side of the phone? i would prolly quit my job
we were just talkin in health class how male auto insurance used to cost more!!!!xd
i should totally ask if we can play this in class!!!!xD
itd bee HYSTERICAL!!!!!!!!!!!
Godbless!!!!!!!!
best i could find, look here:
articles.directorym.com/General_Liability-a800308.html
https://business.netquote.com/Default.aspx?ProductCategory=Business&PartnerID=12170&Campaign=GO722266S_commercial_insurance&id=peut4j55ha2hgtba4vzoc445&productcategory=Business&tsacr=GO2147834718
Why are they so jealous?
CUZ MY PENIS IS HUGE LOL
the guy knew what he was walking into when he said “why are they so jealous” hahahah
bid4insurance. com for simple insurance tips.
zu geil^^
Ah, the old "additional insured on a primary and non-contributory basis" clause.
It's most easily illustrated with an example: Joe Construction subs out some work to Jack's Plumbing, requesting this wording. It means, if Joe Construction is sued, Jack's Plumbing's GL policy covers. They pay first (primary), and Joe Construction's policy doesn't have to kick in (non-contributory).
The ONLY way I ever get an underwriter to agree to that wording, is by adding more wording : "additional insured on a primary and non-contributory basis, but limited to the operations of the insured."
Otherwise, if the general or another sub causes the accident, Jack's Plumbing's GL policy has to pay. First, and without recourse to the general.
Risky Business
“I just figured you send out boxes of driving talent to people when they turn 25.” Lol pwned!
man we get charged way to much for insurance
i mean how do we afford that we cant even afford to live anymore now because every penny we have goes to stupid car insurance!!!!
Will it be cheaper to Defend against the lawsuit or pay off the claim?
If the Defense Costs are outside of the policy limits then it would be cheaper to just try and pay off the person filing the lawsuit.
i am so using this lol
Depending on what kind of corporation your set up as may dictate how you can use your deductions, but with that aside, no you don't have to get commercial insurance. From what I've been told from someone in your shoes is that if you don't need a special license class to drive the vehicle, you don't need it. If you get commercial insurance though (personal insurance too), you should be able to deduct the cost through and use business pre-tax dollars to pay for it so your actual cost is much lower than it first appears. I hope your are having the business buy the car too instead of your after tax income.
Ask your CPA for exact deductions rules for your corporation.
It pays commission – so if you don't sell, you don't make anything.
New agents, well, 95% wash out. They can't make $1,000 over six months. The other 5%, they probably average about $50,000 the first year. But it's HARD work, and lots of hours.