What Types of Risks Should be Considered with a Policy?

Business liability insurance is in place to protect your company against all the risks it faces. The greater the risks your business faces while engaging in operations every day, the greater the coverage you should seek out of your business's insurance policy. The risks you should consider insuring your company against include many things.

Most of the general risks are risks all businesses face. These include property damage, injuries and lawsuits which are covered within a basic business liability policy. But, depending upon what kind of business your company is engaged in and the location where the work is done your specific business liability insurance may need to include additional property risk coverage.

Are there Specific Risks Coverage Guards Against?

Consider the coverage you want to protect your company in the event of damage to the business property by fire or natural disaster. Just about any general liability policy will cover damage done by a fire. But, damage to your business property after a storm like a hurricane may warrant additional forms of coverage. For example, if a flood occurs after a hurricane and damages or destroys your business premises that is a risk that may not be covered in a general policy.

The coverage for flood damage is necessary if your company is located in an area prone to flooding or is near a river or ocean. If this applies to your business location, you want to consider getting ample flood insurance within your liability policy. If the location of your company makes it susceptible to earthquakes, a similar additional form of protection would need to be obtained with the help of your broker or agent.

Not every risk that is applicable to your business is automatically covered by your policy. Do not assume that just because you have purchased a general liability insurance policy for your business that everything is covered. There are specific things such as the examples above that may apply to your company. The level of protection you need against injuries sustained at your company most likely will be in direct proportion to the degree of risk involved in the work done at your company's premises.

In other words, if you have an auto body shop or a landscaping business you will need substantially more coverage than a gift shop or a web design office. You will want to be sure to have worker's compensation coverage, too, if necessary. You want to be insured against anyone, whether a customer or worker, getting injured at the business.

Finally, you want the coverage you obtain to sufficiently provide for your company in the event of a legal claim being filed against your company. This is one risk you may want to look to an umbrella policy to cover. You can purchase a certain limit within your general policy, for example $500,000.00 of coverage. Then purchase an umbrella policy to cover anything above that.

In the event a lawsuit causes you to need coverage above your general policy's $500,000.00 limit, you can rely on this additional umbrella coverage to kick in. Lawsuits can be expensive. Buying more coverage than you need is actually affordable and can also provide you with tremendous peace of mind.

Does My Company Needs Coverage for Specific Risks?

You might suspect there are special risks your business needs coverage against when you begin to consider risk types. Your insurance broker can help you determine which supplemental insurance types are best. Aim to get the most coverage you can against any and all risks your company may face.

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