Why every business needs Commercial insurance

by Mike on July 16, 2013

Commercial insurance

A Company is the product of an individuals or collection of people’s ideas and is a means for dreams and ambitions to come true. Securing your long term dreamsĀ  along with protecting them is the reason any company or business needs to have an insurance policy and relevant cover that can take care of the risks that are faced by any company. Insurance policies are recommended for all companies because these types are cover are formed for the sole purpose of covering the risk of the insured and compensating them for the risk when need arises. Since the main focus of any company should be to run their business making sure that they upkeep their position in the market, manage their clients and provide profitable returns its often very rare they have the time to consider and examine any risk that may arise. Insurance plays its part well by covering all the risks that you choose to be insured and therefor covered for.

Commercial insurance is a common kind of an insurance policy which all businesses can make use of. The policy covers the risks that each business faces depending on its nature and how it operates. The size or age of the business does not matter when it comes to the need for obtaining a policy for its protection.

Four points about Commercial insurance

  • Having all the risks covered in one single policy. This is to save time that is spent on reviewing different policies with different insurance companies.
  • Money is saved as premiums need not be paid for different policies and in fact a one policy covers all discount may be available.
  • While making claims you do not need not go to different insurance companies to make a claim or deal with an issue.
  • Also saves the time required to cross check that one risk or feature is not covered or doubled up in multiple policies.

Factors that influence your policy Commercial Insurance

  • The kind of risk
  • The frequency in which risks could become real
  • Precautionary measures taken against the danger
  • Previous claims history
  • Size and therefore risk of the company
  • Number of risks to be covered (size of the policy)

So a policy amount for two businesses in the same industry and having taken a similar insurance policy with the same insurer could also vary. If you are examining your insurance policy amount and the attached huge premiums then you may need to find a way to reduce the policy amount. One common solution is to compare similar policies provided by other insurance companies and take this evidence back to your insurer. Just like any business, even insurance companies will not be happy to lose their clients compared to negotiating the policy amount and coverage with you.

Another good tip is to find a good insurance company which has been in the market for a long time, covers all the risks that your business is exposed to and who charges you a reasonably premium. An insurance company who charges the least amount for an insurance cover may not be the best insurance provider of that industry and the coverage simply may be too cheap to be true. So looking at the cost of the policy and letting this be one of the primary factors to determine the quality of your insurer is a sound idea. Rather than making it the primary basis when making a decision on choosing an insurance policy and the issuing company.

Building a good long term relationship with your insurer also increases the chances of reducing the policy amount through negotiation.

All said and done every business needs commercial insurance because it is exposed to risk through its day to day operation. This risk needs to be covered else an occasion arises which could result in long term irreparableĀ  damage to the finance and operations of your business and ultimately ruining your dreams.


***Photo thanks to Alan Cleaver & Stallio***

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