Business Insurance

The Business Insurance Financial planning

Undoubtedly the success of a business depends wholly on the hard work of team involved. Nevertheless, one disaster can bring all their efforts to naught and their profit to the drain. To avoid such a disaster from happening you must insure your business whether it is a big corporation or a small enterprise.

There are companies who provide insurance for the major property and liability risks as one package. This is called Business Owners’ Policy (BOP). It includes property insurance for buildings and equipments. It can cover any loss of income due to disruption of operation and accidental damage to business caused by fire for example.
Insurance of liabilities is to cover the company’s legal responsibility for the harm caused to others. It can also include physical injury or property damage caused by defective products or faulty installations or errors in the service provided. But BOP does not cover professional liability, auto insurance, worker’s compensation or health and disability insurance. These need separate insurance cover. Generally floods, earthquakes and terrorist attacks are not covered in the Business Insurance.

Flood Damage Protection

Make your own investigation about the zone area of your company whether it is prone to be hit by flood or it has been hit in the past in which case you must chose a policy that covers against flood. Make sure you do something beforehand otherwise you may face a big trouble.

Earthquake Damage Protection

As this protection not included in most Building (Property) Insurance Policies whether for homeowners or business owners package policies, you must make sure it is included in your policy especially If you live in an earthquake prone area.
You have to remember that Business Interruption Insurance, which reimburses for the loss of income during a shutdown does not apply if the loss is caused due the closure of business because of an earthquake. You must have an earthquake coverage policy to cover such loss.

Terrorists Attack Losses Protection

In the United States, loss cause by terrorism is covered only for the businesses that opted for terrorism coverage. It comes under the Terrorism Risk Insurance Act 2002.There are still exceptions in worker’s compensation that include injuries and deaths caused by acts of terrorism.