If you own a company, there is every chance that you will try your best to make sure it is running properly. From using the right staff to which service providers are going to use, you will meet every turn to make sure your business is smooth and hassle free.
The problem of running a business and actually life in general is that the unexpected happens often and as an entrepreneur it is your responsibility that if the unexpected happens, your business is not affected too much.
And thats where buying commercial insurance for your business is so important.
Here are some examples of things that can happen with the companies and what can happen in insurance, wrong insurance and the right insurance coverage is in place.
Landlord Building Insurance Claims
You are a property owner with a portfolio of houses, apartments, apartments and commercial property. You have decided that the chance that something happens to your new home is quite remote because they are empty so you have decided not to insure them or if you have not come around to tell your insurance broker.
During the weekend your newly built and decorated apartments are broken and the brand new kitchen and bathroom sinks are ripped and stolen.
What happens now?
Without insurance you have to pay for everything
If you actually came around to get the apartments insured but decided to rule out theft protection what without renters and no furniture you might have done to save some money. Since the damage was caused as a direct result of theft, it is once again possible that the damage will need to be met by you
If you have the right landlord insurance on site, you call your insurance broker, they hopefully sort your repairs and change of goods with your insurance company and the apartments are restored to their original state and leave you with a small surplus or deductible to pay.
So for a relatively small landlord insurance premium you can remain with a bill for hundreds or thousands of pounds. Its hardly worth the risk is right?
So maybe you think if you have a portfolio of properties you would definitely make sure they are covered. How about if you only have one and the money is tight? There is every chance that you can take the risk and also have no insurance or insurance that does not meet your needs. People and companies do it all the time. When money is tight, a service such as insurance is often the first to be sacrificed.
You may have forgotten to renew your commercial property insurance or insurance policy. With so many other things to think about it can easily happen.
Here is another example of a claim that can be made against you.
Insurance requirements for commercial real estate
You own a small business and need commercial property insurance for your plant. You know by law that employers liability insurance is needed so you always make sure that this is in place. What about the factory? The staff are all experienced, you have an alarm and people know what to do and more importantly what they should not do. The risk seems quite low, so when a fire happens overnight, you leave the following scenarios
With no insurance, your business is potentially destroyed because the burden of restarting is with you
You have actually just renewed your commercial combined insurance so that you are covered. Well done. However, in order to make your premium cheaper you decided for a very large surplus or deductible and you decided against insurance termination. The result is that you are left in a position without the right thing that is necessary for your business to recover.
You were advised by your insurance broker, they discussed the protection you really need and they made sure your surplus was in a reasonable and affordable figure. As a result, they act to ensure that you get an interim payment on the claim and that your business continues just to get a small premium and an excess.
Most people do not like insurance but for all entrepreneurs, business executives or individuals responsible for ensuring that the business is protected its really an important purchase. Get the right insurance coverage and if a loss occurs you know that the business is in safe hands. The risk that you have no commercial insurance or not getting the right insurance coverage can leave you and your business with nowhere to turn. Is it worth the risk?