Commercial Insurance For Beginners
By: Thomas St John
Would you go boating without a life-vest? I certainly hope not. In the same way; would you run your business without having it insured in any way? Risking bankruptcy and failure, simply by not protecting yourself against theft, lawsuits, damage from water and fire, etc - would you make that mistake?
That should suffice for rhetorical questions for now, I think. Of course you wouldn't jeopardize your livelihood like that, so as any sensible business owner,you want commercial insurance. What type you want depends on what sort of business you run: If you work in the transport and freight sector, you would likely need to insure a vehicle of some sort - perhaps a truck. Well then; commercial truck insurance is what you need. The premiums will depend on the size of the truck, the use of it (could be hazardous materials), what shape it is in, etc. If on the other hand you are a doctor, you wouldn't dream of practising your work without a malpractice insurance, would you? A single malpractice lawsuit could ruin you for life, so you probably would not risk that. No matter what field of business you are in though, there is one type of insurance you probably can't escape: Commercial liability insurance. This will save you from financial ruin, in case you, your company or a product you manufacture causes damage to someone. Most people have personal liability insurances, so the concept may not be foreign to you. Well, liability is just as important for businesses to concerned with - if not more so. No matter how sure you are of the qualities and safety of your products or services, you can never know for certain that they won't be able to cause damage to someone somewhere. No matter how well written your legal disclaimers and user manuals are; there will be people who misuse the product, so even if you are legally not at fault, you could still become subject to a lawsuit. Of course there is also the possibility that you missed a detail when designing your product - no matter how good your quality control is. Insurance is the only way to protect yourself against issues like these.
Commercial motor insurance is another example of how business insurance differs from personal insurance. To an insurance company, a vehicle used for business purposes will be subject to more wear, higher risk, etc; than a personal vehicle is. This may mean you have to pay more to insure a business vehicle in some cases, but not necessarily. What it does mean for certain though, is that the criteria used for risk-assessment are different when insuring the company car. A van insurance quote for instance, will be calculated differently if the van is to be used by a courier business, than if it was for private use. It may end up costing more - or it may end up costing less. No matter what you are insuring, remember to shop around for the best commercial insurance quotes. Take the time you need to find something that fits your needs, and spend what you have to - but please don't omit insurance when building your business.