Risk Management and Your Commercial Insurance Policy

Looking for a way to save on your business insurance policy? Commercial institutions that are proactive about risk management face less exposure risks in terms of losses, damages and the liability for them. Moreover, insurance companies are more prone to offer savings and discounts to those companies and non-profits that are involved in risk control.

Before implementing risk control, however, it is extremely important to know the basic risk-management principles that include the following:

1. Never risk anything more than you can afford to lay bare. In the event a given loss would cripple your company, don’t accept the risk. Rather, transfer that risk to someone else.

2. Never risk too much for an excessively low return. To understand the point, here’s an example: by accepting a higher level of deductible on your auto insurance coverage, you may receive only minimal premium savings.

3. Understand the odds of a loss. If the potential for a given loss seems remote, it stands to reason that you may be able to address the exposure a different way than if the potential is more common.

In short, it is necessary for you to comprehend how much money, time and equipment is actually at risk. Only then can you determine if you can afford to assume the risk of losses yourself or transfer it to somebody else. And then you must make it a priority to understand where frequent or serious losses are more apt to come from – and address them accordingly.

Once you have understood this, choose form these four risk management methods:

• Eliminate the exposure. Stopping the sale or distribution of alcoholic beverages in your social hall is an easy way to eliminate your liquor law liability exposure.

• Take on the risk yourself. Insurance deductibles are the perfect example of assuming risk. If you don’t believe you will have a frequency of losses or if your company has enough financial backup, you may wish to assume a larger deductible – like $1,000 or $2,500 as opposed to a $250 deductible.

• Reduce your exposure to risk. You can do this, for example, by using a spotter whenever possible. This will not eliminate the chances of an accident. However, it will reduce the likelihood.

• Transfer risks. If a risk exposure cannot be reduced or eliminated and assuming it is too risky, then you should transfer the exposure to a 3rd party. While it’s true that insurance is the most common method of transfer of risk, it is by no means the only one. A different method that is commonly used is a hold-harmless agreement or an indemnification clause found in a contract.

To understand more on the topic, contact an experienced independent insurance agency that deals with the leading companies in the industry.

Why a Business Owners Insurance Policy Can Benefit Your Small Business

The Business Owners Policy, otherwise known as BOP, may well be the key to protecting any small business. Made up of a few forms of coverage that each are usually acquired on their own, the bundled plan for small commercial enterprises offers business discounted premiums as they gain from better insurance coverage.

What does the standard Business Owners Policy provide? This commercial policy usually consists of:

• General Liability Coverage

Commercial liability insurance helps a business owner if a customer is injured at the property and sues for his medical care. Coverage extends to hospital and doctor costs, as well as defense costs. It can also benefit the business if there is ‘advertising injury’ related to claims such as copyright infringement, libel and defamation.

• Property Coverage

Commercial property insurance is often also referred to as named-peril insurance, open-peril insurance or special insurance. This can cover the owner in the event there are property damages in regard to a rented space or premises that the business owner actually owns.

• Business Interruption Coverage

Business Interruption insurance helps the insured when rain, wind or snow storms, or cyber hacking and/or other universal happenings occur and disrupt the regular running of the business. The insurance will pay for business loss or put up financing for using another transitory property while running the business until the permanent site has been repaired.

The great advantage to owning a Business Owners Policy is that the standard coverage can be tailored to your individual needs as a small business owner. After an assessment with an experienced independent agent, you will be guided to determining what further types of coverage suit your industry, size of operation and earnings and would benefit you and your company by being included in the policy. What’s more, your agent can schedule regular times for reevaluation if your needs have changed and add or subtract various forms of coverage as per the assessment so that you have the protection when you genuinely require it.

Take a look at this scenario to understand what a related customized policy can mean.

A one-man business operation grew until it included a few more employees. The man’s insurance specialist discussed the growth with the business owner and together they determined that a workers comp policy, as well as a disability insurance should be added to the standard offerings. This satisfied the government requirements and gave the business owner the additional protection he needed in the event an employee would be injured on the job.

For more on the topic, be sure to speak with an experienced independent insurance agent.

Commercial Insurance Policy Guide: How to Choose the Ideal Policy and Provider

Are you any kind of business owner? Even if your business is really, really small, you’ll need some sort of commercial insurance policy. Literally anything can go wrong, even if you conduct most of your business indoors. It’s important to look over the ideal amount and types of coverage for your industry in your state. Every type of industry has its own specific risks. For instance, a home office that doesn’t do any deliveries probably won’t require commercial auto insurance. A construction type of business will probably need to protect its employees from physical injuries, but not have to worry about things like copyright infringement.

Most companies typically need generally liability insurance, which will help protect you from lawsuits in the event that someone becomes injured on your business property, or something is damaged when you or one of your employees is performing a service for someone. Workers compensation insurance is also something you’ll want to consider, as it employees while they’re on the job. However, you yourself, as the owner, will not be covered by this kind of policy.

Since there are so many companies that offer deals on commercial insurance policy, you need to be careful with your choice. Make sure the company you are considering offers the specific level of coverage that your type of business must have. Also, if you have any financial lenders, check and see if they require a certain type or level of insurance coverage for your company. If there are any current or potential clients that have insurance coverage requirements, which policy should you choose that will meet those requirements for those particular clients?

Commercial Insurance Policy Types and Coverages

Like any other kind of insurance, there is no “one size fits all” with commercial insurance. The best insurance companies are those that offer customize coverage for each industry and size of business. If you run an It / tech business, for instance, you should have the option to buy software copyright coverage.

A few other things to look for include:

• Customer service

• Flexible payment options

• money back guarantee after a decent amount of time

• An easy claim filing process

• A lot of positive reviews

• A company that is financially stable

One company that meets all of these is Hiscox Insurance Company. Go ahead and take a look at all of their custom commercial insurance policy solutions. Get a free quote and a 14-day money back guarantee. It’s also a very financially stable organization.