Quite often, we get asked ‘am I covered if…?’ and this is a great question for our customers to ask to ensure they have the right coverage in place. In fact, we continue to receive great questions from customers about commercial insurance, so we have updated this post with even more answers.
We have answered your frequently asked home and auto insurance questions and now with the help of Alex, Commercial Insurance Manager , we have answered some frequently asked questions with regard to business or commercial insurance. As many businesses have unique coverage to meet different needs, our answers provide a general overview on important details and options that apply to multiple industries. For a customized review of your business insurance needs, we recommend speaking with a commercial insurance expert.
Q: Am I covered if… I make any changes to the operations of my company?
A: Your insurance should be as unique as your business. If you alter your business or operations you may be altering your risk exposure. It is important to notify your broker of any planned changes to your business model. This may include changes to the product you manufacture, the process for manufacturing or offering new types of goods or services. Perhaps you are planning to start offering installation services for the products you distribute. These operational changes are called a “material change in risk” and can impact the type of coverage you need or the premium charged by the insurers. It’s a good idea to speak to your BrokerLink broker before moving forward with any business modifications that may impact your coverage.
Q: Am I covered if… my business gets sued?
A: Depending on the allegations, your policy can help defend you from legal action against the operations of your business. Notify your broker immediately if an incident occurs that could result in a potential claim or lawsuit. They can discuss what protection and coverage is available to you.
Q: Am I covered if…my business experiences a flood?
A: Many commercial insurance policies can cover damage to your business as a result of overland flooding. It’s important to speak to your BrokerLink broker to understand how your deductible and any limits can impact exactly how much would be covered. You broker can provide options to ensure you have the right level of coverage in place.
Q: Am I covered if… a fire causes an interruption to my business?
A: In the event of a fire or other incident that results in you having to halt or cease operations, business interruption insurance can help cover the costs of lost revenue and additional expenses associated with being temporarily shut down, including employee wages. If you don’t already have one, creating a risk management plan can be useful to refer to during an unexpected event.
Q: Am I covered if… the product or service I provide causes injury, illness or death following a sale?
A: Every business owner should carry general liability insurance for protection against bodily injury and property damage to others. Depending on the nature of your business, as an added form of coverage, you can add product and completed operations liability to your policy. This coverage extension can provide further protection from customer claims made against your products and services after the sale. Talk to your BrokerLink advisor to determine whether this coverage extension is right for your business.
Q: What type of liability insurance does my business need?
A: In additional to general business liability, there are five additional types of liability coverage available:
- Employer Liability
- Employment Practices Liability
- Employee Benefits Liability
- Directors and Officers (D&O) / Management Liability
- Legal Expenses Liability
Learn more about additional liability coverage.
Q: Am I covered if I use my personal vehicle for business purposes?
A: It’s important to ensure that if you or your employees are using personal vehicles for business purposes that you notify your broker. That way, they can add a commercial endorsement to ensure you’re properly protected. If you have company vehicles that are used regularly, such as a commercial fleet, you will require a commercial car insurance policy.
Q: Am I covered if I operate my business out of my home?
A: Depending on the nature of your home-based business there are two coverage options available to you. A home business extension can be added to your current home insurance policy to offer protection for home-based businesses that have low risks and where customers do not visit the premises.
For larger-scale operations, with expensive business property, and which could be at a higher risk of a liability claim, a commercial insurance policy is required. Learn more about home-based business insurance.
Q: Does my business need cyber insurance?
A: Many people assume that large corporations are more likely to experience a cyber threat or hacking incident. In reality, smaller organizations are often times more vulnerable to a cyber incident as they do not have the same precautionary measures in place. If your business stores or uses large amounts of customer information, utilizes a large-scale data storage system or you feel could even remotely be at risk for a cyber incident, then cyber insurance coverage could be right for you. Learn more about the types of cyber insurance available.
Q: Do you offer customized coverage tailored to my businesses specific industry?
A: At BrokerLink, we recognize that each industry has exposures to unique risks. You should never buy a one-size-fits-all insurance package off of the shelf. In order to ensure your business’ insurance needs are properly met, we have brokers that have commercial insurance expertise in the following areas:
- Healthcare services
- Oil and gas
- Real estate and property management
These are just a few of the industries we can create customized insurance solutions for. Speak with your BrokerLink broker today to learn more about industry-specific insurance coverage.
Your insurance coverage should be as unique as your business. As many businesses have unique coverage to meet different needs, these answers provide a general overview on important details and options that apply to multiple industries. For a customized review of your business insurance needs, we recommend speaking with a BrokerLink commercial insurance broker.