It is vital for every Cotati firm to carry sufficient business insurance to protect it from the many issues that can arise that are outside the business’ control. The precise kinds of business insurance that a company requires will depend on the nature of the company’s business and other factors. Failure to have enough insurance protection could put a company at risk of facing severe financial payouts, and could even result in the company going out of business. This article looks at some varieties of insurance designed to protect commercial operations.

MANY SORTS OF COMMERCIAL INSURANCE

Commercial insurance is a general term that refers to insurance policies that are especially tailored to meet the demands of commercial operations. It should be mentioned that even a sole trader who trades informally may need some form of commercial insurance to avoid issues with the law, or with dissatisfied customers. For example, a window cleaner who uses a motor vehicle to travel to, from and between jobs might be required to have commercial insurance for that vehicle.

Even though commercial insurance is a vital protective measure for all sizes of enterprises, in many ways it is even more essential for smaller companies with limited resources. The private assets of owners and directors of smaller firms are often less protected than those of big business owners, making it even more critical to have the right level of insurance coverage.

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WORKER’S COMPENSATION INSURANCE

Worker’s compensation insurance is a particular type of coverage designed to aid both employers and their workers. Many accidents occur in the workplace, and where these result in injury to any staff member, the staff member can apply for compensation from the employer’s insurance provider.

For staff, it is important to appreciate that claiming from the compensation insurance provider is not the same as taking a lawsuit against either the employer or the insurance provider. In fact, the scheme is designed to provide compensation without resorting to the courts, and workers who make claims under the scheme must relinquish their right to sue.

This type of policy benefits Cotati employers by protecting them from costly lawsuits, which often result in very high payouts. It also helps to get the difficulties resolved much more quickly. The most typical claims under the scheme are for loss of earnings, and the refund of medical expenses.

EMPLOYMENT PRACTICE LIABILITY INSURANCE

The coverage provided under employee practice liability insurance (EPLI) protects a company when issues arise that affect the employment process, certain types of work environment factors, and the termination process. Employers have to have this coverage to protect themselves from claims made by job candidates, existing workers, and past employees.

The types of claims that are most commonly seen are those arising from the following issues:

• sexual discrimination or harassment
• racial or religious discrimination
• wrongful termination of employment

All staff of a company, as well as the directors and other executive officers, are insured under EPLI policies.

Comprehensive guide to EPLI

COMMERCIAL PROPERTY INSURANCE

Commercial property insurance is frequently a part of, but not the same as, commercial insurance. It is a type of policy that applies specifically to the actual physical property that a company owns or leases. This includes land, buildings, plant and other items. The most common claims received under commercial property insurance policies are to do with fire, theft and natural disasters. In some instances, equipment is covered separately from buildings with a commercial contents insurance policy.

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Company owners should be careful to read the policy carefully to ensure there is adequate protection. Every policy will differ in its specifics, but there are some general factors that need to be taken into account. For example, some policies will provide for replacement of damaged or stolen machinery, or other company property. Others will offer financial compensation based on the current value of the property being claimed for.

Many business owners need this coverage to allow them carry on trading with the smallest delay following a loss. Consequently, it is probably best to look for a policy that covers replacement rather than one that offers just the value (depreciation will be taken into account) of property.

Clearly, the premiums of a commercial property insurance policy will depend on the level of coverage required, and expensive policies could prove difficult to finance in some companies. Having said that, if a firm is hit by any disaster that means it cannot trade until the missing or damaged goods have been replaced, it is probably sensible to spend the extra money on an insurance policy that will let them get back in business as quickly as possible.

GENERAL LIABILITY INSURANCE

General liability insurance protects companies from a wide range of liabilities. In essence, it provides coverage to businesses when third parties seek compensation due to injuries or damages caused by a business, its products, or by the negligence of its workers.

For example, a general liability insurance policy for a retail outlet will protect the firm from claims by customers who were injured while on the premises.

It will additionally protect the firm against claims that a product it sold caused damage to property or injuries to people through an inherent design flaw or a malfunction. The retail outlet may be able to seek redress from the product manufacturer. Nothwithstanding that, in most jurisdictions, the outlet will be the entity that is sued by the plaintiff, which is why this type of coverage is essential.

General liability insurance normally provides coverage for legal expenses arising from any lawsuit, medical expenses, and substantial damages or injury payouts.

SUMMARY

Cotati, CA business and corporate entities are obliged by law to take out certain types of insurance protection. For example, it is a legal necessity to carry insurance on commercial vehicles. Other types of insurance coverage are voluntary, but it is unwise to decide to trade without proper coverage.

Insurance policies can be complicated, and some enterprise owners may be unaware of whether or not they are fully covered for all possible scenarios. If that is the case, they could talk to an independent, experienced and licensed broker. Brokers are offered commission by insurance companies, and they fund that commission out of their profits, so there is no additional cost to a company that uses a broker to arrange business insurance.