Understanding the Need of Having Adequate Business Insurance Cover

Insurance is a means to protect the businesses from unforeseen risks; it provides peace of mind to the business owners. However, choosing adequate insurance cover is crucial to leverage the benefits it offers. This article sheds light on the negative impact of under or over insuring a business and the importance of having adequate insurance cover.

Under-insurance or over-insurance – impact

Besides determining various risks that your business is likely to face, you also need to calculate the amount required to cover the risk to determine adequate cover, failing which you may face the following issues –

• Revenue loss: Under-insurance may cost you dearly. The low premium may initially attract you, but it may lead to revenue losses when the risk arises. If any risk arises and your business is not covered with adequate insurance, it may affect your business financially, as you have paid for an insurance cover that is less than its value and you have to bear with the loss of revenue.

• Business interruption: Being under-insured may lead to business interruption, because, if your business is not covered with adequate insurance, you have to endure losses in case of physical property damage or liability claims. Until you spend some money from your pocket to re-build the business, you may not be able to run your business. Business interruption, thus, halts the revenue you are generating.

• High premium rates: Over-insurance results in paying high premium costs, for a coverage that goes beyond the actual cash value of the risk that was insured by the policy holder. If your business is over-insured, and you are paying high premium, which is actually not required, you will be in a loss.

Adequate insurance and its importance: Incidents such as accidents, natural calamities like storms, etc. can result in interruption/closure of your business. Having adequate insurance coverage is, therefore, very critical to protect your business from such kind of risk. Following are two more benefits of having adequate insurance –

• Smooth business operation: If your business is insured with adequate insurance coverage, you can operate your business smoothly. You need not worrying about the risks that may occur in your premises.

• Resume operations after unexpected events: After an unexpected event at your business premises, you need to rebuild your business to resume operations. At this critical time, having business insurance is very helpful; it will cover the loss incurred. It helps rebuild your business and resume operations.

Determining the insurance cover for your business

Before you purchase insurance for your business, it is important to calculate the total value of assets and costs required to repair/replace them when an unforeseen event happens. For this, take help of tools such as property value calculator, replacement cost estimator, etc. which enable you to determine the coverage required for your business. This way, you can avoid the instances of both under and over insurance.

Take expert advice

After knowing the importance of having adequate insurance for your business, purchasing it on your own can prove risky, as you may miss on a few things. Therefore, it is better to take advice of insurance brokers as they will help you in choosing adequate insurance coverage after looking at all the aspects of the business.

Your business may be thriving well; however it might face difficulties which you cannot foresee. Purchasing insurance that covers all the potential risks to your business adequately is, therefore, a sensible business idea.

Specialized Insurance for Logging and Wood Product Industries

Who can dispute the fact that the loggers and related business holds so much risk potential? Because this industry comprises of activities where damages, injury and even death can occur, not many insurance companies are willing or experienced enough to write correlated policies. As such, only those carriers that offer the specialized coverage are approachable for the industry.

About Logging Industry Insurance

Logging companies evolve around felling trees in the dense forests, transporting the logs to the saw mills, and everything in between. Related coverage can be acquired from the specialty companies that place a focus on the localities where logging is essential to the populace’s economy and associated exposures. These professionals are in the know about the involved complexities of equipment risks as well as the vehicles used for transporting the timber. While liability is at the forefront, the workers compensation aspect is difficult to place and experienced hands-on management is necessary.

About Loggers Broad Form Property Damage Liability Coverage

In essence, this type of loggers’ coverage is a fire coverage insurance form. This insurance guards against risks of ‘care, custody and control’ in relation to loggers that do their work on land that they do not own or with trees belonging to someone other than themselves. The policy ensures recompense for the physical damage or destruction of tangible property of others. It also incorporates loss of use from an occurrence that directly is related to the work of the loggers and includes expenses from an incident that is directly associated to logging operations. The coverage also incorporates costs associated to firefighting efforts in a fire that was caused by anyone the logging company is responsible for by law.

About Insurance for the Wood Products Industries

In a broader sense, Any member of the lumber industry – including those that work in wood products – recognizes that insurance coverage is a real necessity.

Here are some businesses that need differing types of specialized lumber insurance:

• Those that deal with construction materials

• Cabinet makers

• Manufacturers of doors

• Distributors of drywall

• Furniture manufacturers

• Hardware stores

• Manufacturers of laminated beams

• Manufacturers of log homes

• Lumberyard businesses

• Manufacturers of millwork and windows

• Pallet builders

• Planning mill

• Sawmills

• Truss manufacturers

• Manufacturers of veneer and plywood

• Wood preserving businesses

• Wood products manufacturers

Related commercial enterprises should be aware that not all classes will be approved for workers comp. To find out more about this special insurance, contact an independent insurance agency that has the connections with specialized insurance companies.

The How of Employment, Staffing Agency Insurance Coverage

Generally speaking, there is no one-size fits all business insurance policy. Every industry and every niche in an industry has its own pitfalls. This is why the insurance companies offer plans corresponding to the individual risk exposure faced by each enterprise.

For those involved in locating job posts and employees that fit the want ad of a company, there are many risks. The summaries below outline what each agency does and why specialized coverage is so necessary.

Errors and Omissions Insurance Coverage for the Employment Agency

Employment agencies and their counselors generally operate in big urban centers. They benefit both employer and employee by facilitating job placements.

An employment agency typically matches employees to businesses for the following positions:

• Main administrators

• Secretaries

• Clerical workers

• Other office workers

Although most employment agencies assist in a broad manner, others find employment and employees in specialty industries. The specialty agency involves itself in placing skilled as well as non-skilled personnel into businesses.

Both the general and specialty employment agency and its counselors face a wide exposure to errors and omissions exposure if a recommended employee does not perform in accordance to specifications. Held accountable for misrepresentation the employment agency can face a charge of negligence or error or omission. Moreover, the employment agency can be sued if it slanders a job candidate.

Employment Temporary Service Agency Insurance Coverage

In contrast to a general employment agency, the temporary services agency provides temporary employees for commercial offices, engineering businesses, light manufacturing operations, and servicers. The temporary employee service is important for organizations that contend with elevated peaks. The service is also used in the event temporary help is needed to replace employees on vacation or leave of absence. Associated coverage can consist of:

• Professional liability

• Liability in the event there are damages due to temporary worker’s activities

• Workers compensation involving the temporary worker

Insurance for Employee Staffing Services

Employee staffing services is different from the aforementioned. The employee staffing service provides employees for businesses as per a contract basis. The employee staffing service is in responsible for workers’ pay, benefits, workers comp and other human resource matters as it relates to the job. Insurance can incorporate:

• General as well as professional liability

• 3rd-party fidelity coverage

• Employee practices liability

• Workers compensation

For more information about general and specialty employment service and temporary employment insurance, as well as insurance coverage for an employee staffing service, contact an experienced independent insurance agency.