Commercial Insurance and Commercial Auto Insurance – For Safety in Security

No matter how safe we want to be, things like accidents and calamities happen. Fortuitous events may occur and we find ourselves helpless to do anything about it. However, all is not necessarily lost with the help of a good commercial insurance and commercial auto insurance. So what is a commercial insurance one might ask? Commercial insurance is like any other business safety an insurance policy that is made and established to protect and serve as a back up to one’s business, in the unlikely event that some type of loss or damage happen.

There are basically two main kinds of coverage that one can avail of within a commercial insurance. These are;

• Property Coverage – commercial property insurance is designed to practically assure the company in the unfortunate event that the latter is threatened of any major or minor damage or loss of property because of calamity, accident or other causes not the wilful fault of the company or its employees.

• Liability Coverage – it serves as a safety in the event that the company may cause loss or damage on others due to, say for example a lawsuit filed against them.

Companies who avail themselves the services and guarantees offered by both property and liability coverage can sleep better at night, because of the assurance they are given in the event a damage or loss may occur to their business due to any fortuitous event. As it is mentioned in the coverage mentioned above insurance carrier is there to safeguard the company’s asset and provide aid in defraying the cost of possible liabilities.

In the case of commercial auto insurance, a person or a company is given a guarantee of help and assistance in the event that damage or loss happen to the latter’s vehicle. Commercial auto insurance works the moment loss happen to the car, like in the case of theft and the likes and also damage due to accidents and/or vandalism.

No one can foresee what the future brings, but given the cost of investments one makes to put a business as well as the exorbitant fees paid to purchase and maintain a vehicle a commercial insurance and commercial auto insurance are there to ensure that your investment do not go to waste due to unforeseen circumstances.

Two Unexpected Areas Commercial Insurance Brokers Operate In

The average person tends to mostly associate the term ‘commercial insurance brokers’ with business and corporate insurance, a link which is neither unwarranted nor off the mark. In fact, the majority of these companies’ business tends to revolve around helping corporations and small businesses be properly insured.

However, some companies are not satisfied simply sticking to the standard, typical areas of expertise for commercial insurance brokers. For some of these experts, it is a challenge to attempt to expand to areas outside what would normally be associated with them, and as a result, their companies tend to offer services in fields they would not necessarily be expected to operate in. This article highlights two of the most unusual fields commercial insurance brokers may offer insurance solutions for.

Charity

The name ‘commercial insurance brokers’ hints at the fact that these companies mostly operate within profit-driven sectors; that is why it can come as so much of a surprise to discover that some of them offer solutions specifically tailored for charities and not-for-profit organisations.

Commercial insurance brokers who offer these types of services tend to focus their efforts on ensuring said organisations are protected against medical malpractice, abuse, negligence and accidents. Further, they seek to provide cover for any events these groups may seek to organise, as well as insure their property as much as possible. It is not unusual to see commercial insurance brokers who offer solutions for charity offering cover for vehicles, such as minibuses, as well as insurance in case of business interruption. The intent is to ensure that, much like profit-driven businesses, these organisations are able to minimise financial damages in case of an accident or misfortune. This is particularly important in the case of charities, as they tend to survive on donations and grants; commercial insurance brokers who deal with these types of institutions understand this, and this is why they tend to be particularly thorough when tailoring insurance solutions for not-for-profit clients.

Education

Education insurance is another field many commercial insurance brokers very often branch off into when looking to widen the scope of their services. While not strictly businesses, schools and academies often tend to have many of the same needs a typical company or corporation will have, and hence many commercial brokerage companies find that they are well-equipped to offer solutions in this field as well.

Typical insurance solutions for schools and academies also tend to overlap with those offered to charities and not-for-profit organisations, as these types of institutions tend to have the same needs and many of the same goals as educational establishments. However, packages for schools do offer a number of additional options, such as cover for school and field trips, cover for governors and trustees, and hirers’ liability. This helps ensure both students, staff and school property are fully insured and covered, a measure both welcome and necessary when dealing with minors. Child protection is one of the main concerns of modern western society, and it therefore comes as no surprise that most of these packages are specifically designed to ensure both a school’s students and the adults responsible for overseeing them are as safe and secure as possible in the context of their learning activities.

It is clear, then, that while many commercial insurance brokers are perfectly happy sticking to the tried and true areas of the insurance field implied in their name, just as many are willing to branch out and offer cover to sectors and fields of modern society they would not normally be expected to get involved in. Doing so, in turn, allows them to widen their potential pool of clients, all while earning a reputation as versatile insurance providers able to manoeuvre within different fields.

Commercial Insurance Quotes Online Pitfalls

It is a very straight-forward process today to compare commercial insurance quotes online for virtually every type of business and trade.

There are many very fast and efficient websites operated by insurance agents, brokers, companies and comparison sites that offer quote comparisons for both liability and property cover, However when buying commercial insurance for your business online there are many not so obvious considerations and often hidden costs, that you should be aware of before you purchase.

The major problem with all online quote comparisons is that products are differentiated by price, most often with the cheapest quotes displayed first. Inevitably this will mean that quality insurance products with more cover that maybe cost a little more, will often not make the top five results displayed.

Whether you are looking to purchase liability protection or commercial property insurance for your stock, buildings and contents the most important consideration when applying for quotes is to disclose all the material facts. Many policy contracts can later be deemed null and void because a business owner was not one hundred percent truthful when applying for quotes.

If you fail for example, to declare the full value of your buildings in an attempt to reduce the premium prices quoted, in the event of a claim for an insured loss, your settlement figure will be reduced by the insurer proportionally to the amount of under-insurance, invoking what is known as the average clause.

Another example is a failure to declare all your staff including part-time staff for liability cover purposes.

it is also equally important when comparing policies by price quoted, to compare the actual covers offered by these policies. Invariably there will be differences in the levels of indemnity for loss, sums insured and additional covers offered.

Likewise each commercial insurance company will also tend to have its own levels of voluntary and policy excess, set to attract or deter certain types of business.

Compare policy wordings and keyfacts documents so that you fully understand the levels of cover offered by each of the quotes, before you buy.

Avoid paying for additional covers that you do not need. For example, new businesses in their first year would not be able to claim on a business interruption section of a policy for loss of profits, as there is no trading history. Similarly businesses that do not give advice have no requirement for professional indemnity insurance which may be included in some all risks packaged polices.

Other hidden costs to be aware of, are companies offering monthly payments or credit facilities at high interest rates. Beware sites that do not display the monthly premium breakdown at quote stage for those wishing to pay by monthly debit.

Before purchasing or even obtaining quotes, you should check that the provider is regulated and authorised to conduct commercial insurance business.
For example in the UK the site should display an FSA registration number, which shows the site is covered by the Financial Services Authority compensation scheme, should things go wrong.