Monthly Archives: May 2017

Distributor Needs Good Commercial Insurance

While the distributor industry may provide excellent business opportunity, it also has a high rate of liability risk exposure. As in any venue of life, anything can happen, at any time – and like most of us know all too well, it often does at the least predictable of times!

Just as a car, truck or motorcycle driver should equip himself with tailored auto insurance; and a homeowner or home renter with customized homeowners or renters insurance; the distributor business owner needs the unique form of commercial insurance that is geared towards his line of work.

I’ve compiled the following genuine insurance claim examples that have resulted in compensation to the insured. These serve to illustrate just how losses and damages can occur in the distributing business.

Business Property Coverage

• After locking up and returning home, a skin-care distributor was alerted of bad news by police detectives. There had been a break-in and unlawful entry into his business. Besides taking every single piece of computer equipment in his office, the thieves had stolen numerous valuable items from the distributing warehouse: the computer, the business shipping computer and printer, photography studio cameras, and all of the items in stock reserved for future shipments.

General Liability Coverage

• As the workers of a small fruit and vegetable distributing company delivered their cases to the neighborhood produce store, one delivery guy accidentally pushed his full hand-cart into an elderly shopper. The man incurred painful injuries as a result and required medical care at the hospital.

• Following a shipment of related merchandise to a home improvement super store, an insurance claim was brought against the distributor. The reason why? A shopper had failed to notice the papers and packaging left behind by the delivery man in the parking lot. The middle-aged woman slipped on the strewn wrapping and fell. The injuries necessitated a visit to the doctor’s office.

For proper coverage, a distributor is best off going to an experienced independent insurance agency that deals with financially strong companies who have the reputation to efficiently represent their policyholders.

Depending on your needs, a good commercial policy may have the following coverage benefits and more:

• No deductible for general liability
• Bodily injury that includes illness resulting from mental or emotional anguish
• Consideration of up to $5,000,000 in receipts
• Has a business owners policy form
• Includes hired, as well as non-hired auto coverage
• Includes personal property off premises, as well as property that is in transit
• Includes electrical data and computer operation interruption

Small Business Commercial Insurance

If you are starting a new business or are re-evaluating your business insurance needs, it is important to make certain you have a good, solid, business insurance policy that is tailored to your needs. Many small business owners often view business insurance as a luxury, when in fact it is a necessity to protect you and your business. Several business owner’s only think of a business policy as protection against casualties and damages such as a theft, fire, or damage to equipment and products. When in fact, the most important part of a good business policy is the liability protection.

No matter what size of business you operate, big or small, it is always important to protect your business and yourself from the unpredictable. In today’s culture, even the smallest accident can result in large lawsuits. The general liability portion of a business policy is extremely important in that it defends you, your employees, and the reputation of your business from any lawsuits that may develop from bodily injury, damages, or negligence for something it did or didn’t do. General liability insurance can often be purchased separately or as part of a BOP (business owner’s policy). A “BOP” combines both property and liability insurance together into one policy.

Typically a BOP includes the following:

* Property insurance to cover the building, equipment and goods
* General Liability insurance to protect the business, employees and owner from lawsuits that may arise from accidents, negligence, or other damages
* Casualty liability protection to protect the business and employees from harm to other people or their property
* Insurance against theft of goods or money & securities
* Insurance against interruption of business: This coverage can provide money to offset lost profits and income to continue paying expense
* Several other options and endorsement are available to purchase

When purchasing a Business Owner’s Policy, it is very important to discuss the details with a licensed insurance agent who is familiar with commercial insurance policies. There are several options and risks that can be covered under a BOP. Some of these options can include signage, money and securities, business property, employee dishonesty, computer viruses, mechanical equipment failures, or loss of income for utility failures just a to name a few options. Not all over the options available are necessary to all business owners since not all businesses are alike. For example, a deli business that stores a large supply of refrigerated food, might find it very valuable to purchase insurance to protect them against the refrigeration equipment/breakdown or possibly even protection against a utility (electrical) failure that could possibly ruin valuable refrigerated food goods. It is also extremely important to purchase commercial auto insurance or ENOL coverage for all vehicles used within the business.

Why Commercial Insurance

A business that has a Commercial Package Policy is often a small to mid sized business, or in a more risky line of work. A Commercial Package Policy has many parts of protection, including: Business Auto, Business Property and many more types of commercial insurance. All of the sections of coverage, are very broad and require some clarification. Commercial lines of business are complicated to understand, and to find an insurance company to cover the liability of the commercial policy. As a business, no matter the size, Commercial Insurance is a essential part of the companys safety; there is simply just too much liability to ignore coverage. If the commercial policy is written correctly, a business is protected from all categories of litigation and lawsuits. Companies, are being sued for employee misconduct, negligence, libel or slander, and one lawsuit can bankrupt a company.

Other portions of a Commercial Package Policy shield the company against perils and risks that might be encountered. Business property, autos, or goods are covered under Commercial Auto, Property, Location and Premises and Inland Marine. in the event of a fire, explosion, theft, and other perils. The best thing a business can do for protection is find a knowledgeable and honest Insurance agent. Having an insurance agent that you can depend on is the best way to make sure your business is covered as thoroughly as possible. It is the business owners responsibility to make certain they choose an agent that is going to get them the correct coverage at the right price.