Basics of Commercial Insurance

Finding a broker who provides commercial insurance in Vancouver is not a difficult task – all you need to do is search the Internet or the local yellow pages. However, before you decide on the broker or the company from where to procure insurance, it is vital you understand the specific type of commercial insurance your business needs.

Commercial Property Insurance

When you run a business in Canada, you have the option of choosing from a wide range of commercial insurance policies. The most common one is commercial property insurance that provides cover for your building, equipment, inventory you carry, and losses caused by manmade or natural disasters – vandalism, fire, or windstorms. However, if you want coverage of your property against floods, you will most probably require to purchase a separate policy because this is not covered under the general commercial property insurance.

The equipment, inventory, fixtures and furniture at your place of business is covered under the business personal property insurance policy. However, if the nature of your business requires the frequent transportation of these materials to sites other than your office, it is advisable to also procure an inland marine policy.

Business Interruption Coverage

Sometimes, a disaster may cause your business to be closed for some time during which you seek to restore the premises to their previous status. At such times, it naturally follows that you have to meet these expenses even though you are suffering a loss because of the temporary closure of business operations. Having business interruption coverage means you get reimbursed for these expenses as well as the profits you lost during this time. Some policies also include reimbursement for losses that arise because your business is located in an area that is declared as being out of bounds by civil authorities following a major disaster.

Commercial Insurance for Home Businesses

If you have a small home business, it is vital to understand that you need separate cover for those tools, equipment, computers and other machines that are related to your area of work. These items that are not a part of your home but rather necessary for your business are not likely to be covered under any homeowner’s insurance policy you already own and therefore, it is necessary to obtain a separate policy from any firm or broker selling commercial insurance in Vancouver.

What to Consider

The type of commercial insurance you ought to get depends on many important factors such as:

The type of business you run
How big your company is in terms of volume of work
The number of employees you hire
Any specific insurance specified by the law for doing business in your chosen field and of course,
How much you can afford to spend on commercial insurance. When it comes to commercial insurance, the premium you need to pay may be high but this is an inevitable expense that no business can afford to ignore. Although you may be spending a lot on such insurance policies, it is worth remembering that this is your protection against loss from unexpected untoward incidents that can happen to anyone at any time.

Commercial Insurance Brokers – A Definition

In recent years, much has been made of how important a role commercial insurance brokers play in the modern-day insurance panorama. Quite apart from mere salesmen, these professionals are seen almost as partners in each of their clients’ purchasing journey, helping and guiding them along the way whilst at the same time providing the tools necessary to ensure they come out as thoroughly protected as possible at the other end.

Yet, for all that the importance of their role is recognised by all and sundry, the perception of what commercial insurance brokers actually do remains, for most uninitiated neophytes, sadly muddled. Other than the extremely general concepts detailed in the paragraph above, many if not most of the men and women seeking to purchase a policy of this type will probably not be able to explain or pinpoint precisely what the role of these professionals is in the grand scheme of things. It is that question that this article seeks to address and clarify, by offering a brief overview of what is generally meant by ‘commercial insurance’ and detailing some of the tasks commercial insurance brokers are responsible for in the course of their professional duties.

Commercial Insurance: A Definition

Before attempting to list the professional responsibilities of commercial insurance brokers, it is important first and foremost to define precisely what is meant by the term itself.

The term ‘commercial insurance’ generally refers to insurance meant to protect and cover businesses, commercial endeavours and manufacturing plants. These policies are generally underwritten in a way which protects business assets, such as buildings and equipment, while also giving the business owners the highest possible degree of cover. Typical clauses on a commercial insurance policy may account for property damages, financial loss or workers’ compensation.

The Role of Commercial Insurance Brokers

Having defined what the term ‘commercial insurance’ usually designates, this article can now go on to define exactly what is encompassed in the professional competencies of commercial insurance brokers.

In essence, commercial insurance brokers act as the link or contact point between consumers looking to purchase a policy and the insurers themselves. Like all brokers, these professionals tend to have links to a vast number of insurers, allowing them to pinpoint which of the plans offered by the different companies is best suited to that particular client’s needs and requirements. Once the ideal plan has been selected, it is then up to commercial insurance brokers to contact the insurer directly, on behalf of the client, and set up the terms of the policy and the underwriting.

In addition to this principal role, modern-day commercial insurance brokers are also called upon to fulfil the didactic role described earlier in this article. The combination of their expertise and the lack of knowledge of the insurance field the average customer tends to have combine to make these professionals a sort of tutor, teacher or guide for their clients, helping them figure out the different steps involved with the process of purchasing commercial insurance.

It is easy to see, then, how the exact role of commercial insurance brokers might appear unclear to those less versed in this particular field. It should be equally as clear, however, that these professionals’ contributions to the profession as a whole are nothing short of essential, and that they play a key role in ensuring the process of purchasing commercial insurance is smooth and stress-free for even the most neophyte of customers. As the process of setting up a business continues to become more and more accessible, it is only to be expected that the role these professionals play within western society as a whole grows in direct proportion.

Significance of Commercial Insurance For Your Business

Small and medium sized business needs help when it comes about managing risk and this can be very well be done with commercial insurance. The policies associated with can help you to protect the business and ensure long-term growth of your business. They are unfortunately many businesses which have collapsed due to the lawsuit, where they actually lacked the right kind of insurance. It is of supreme importance that modern businesses are fully covered, especially in the age of litigation.

This is one of the most important investments were you or anyone can make when starting a new company. Good commercial insurance will protect your company from severe financial loss and can be the difference between going under and staying afloat in case of damage or a lawsuit. It is of great importance to be knowledgeable of different types of commercial insurance and work with a reputable agent to create the most appropriate policies for your business.

Significance of the Commercial Insurance:

Commercial insurance is not only crucial for the small business but it is equally important for big business also. It protects you from commonly experienced losses including property damage, theft, and liability and employee injury. With the presence of adequate insurance, companies can more easily recover from these types of losses. Without it, you can be at risk of going out of business. Types of insurance:

The main three type of Commercial Insurance are

Liability insurance
Property insurance
Workers’ Compensation Insurance

Liabilities insurance protects you from damage that your company inflicts on any third parties. It covers the cost of personal injury or property damage lawsuit and injuries customer incur at your place of business. Property insurance covers the damage to property within your place of business, such as fire or flood damage. Workers compensation insurance protects you in case employee is injured on the job. It also prevents an employee from filing negligence lawsuit against you for any injury they sustain during work.

There are various policies which are required by the law. The requirements are based on the industry. For example, it is required for lender and landlords. A right type of insurance and in right amount helps to come up from every sort of potential problems. It is very important to know the extent of and the limit of each liabilities cover, as t may need to expand based on the growth of the business. This can be done by with action such as buying an umbrella which increases the liability cover.