Underground Journal

5 overlooked coverages in commercial insurance

Running a business is enough of a challenge – you have enough on their plate just running your business without having to be bogged down by questions of insurance.  If you are working with a reputable broker, you may have all the coverage you need – or perhaps not.  This article highlights 5 commercial insurance coverages that are often overlooked.

1. Contingent business interruption: Like Business Income insurance which protects your lost income due to a covered loss on your premises, contingent business interruption insurance protects your lost earnings following a physical loss to one of your key suppliers or customers which would cause your business a financial loss.  If your company is heavily dependent on materials from one supplier that cannot be obtained easily elsewhere or if your business is dependent on one customer, your losses could be significant.  Take a moment to consider how significant that impact might be.
2. Non-owned automobile liability: If your business does not own any vehicles, you may not need a commercial auto policy; however, you should consider that owners, sales people, messengers, and support staff often drive their own vehicles or rent vehicles in the course of business.   If an accident were to happen during this business related travel, your business could be named as a defendant in a lawsuit.  Your business assets are on the line, don’t leave them exposed to an automobile lawsuit. Hired and Non-owned Auto Liability can be added to most commercial package insurance policies or as a stand alone commercial auto policy.
3. Employee Dishonesty: Fraud and embezzlement may not be something you want to think about, but that could be a big mistake.  The Association of Certified Fraud Examiners (ACFE) states that business fraud losses exceed $400 billion annually.  Since small businesses often have little cushion to fall back on and are not adequately insured, an employee theft loss can be devastating.
4. Equipment Breakdown: If your business is dependent on specialized equipment or machinery, including computer equipment, your business would stop being productive in short order if that machine were to breakdown.  Equipment breakdown insurance covers damage from “internal” causes to include mechanical failure, faulty wiring, or in the case of computer equipment, software or hardware failures. Much to the surprise of many, commercial property insurance policies don’t cover equipment breakdowns, unless you ask for it.
5. Internet Liability: Most businesses small and large have an internet presence, or are in the process of getting online.  Internet liability is designed to protect your business from claims of  damages to third parties from the use of your website or internet marketing.  The most frequent claims include viruses and malware, network hacking resulting in confidentiality breeches, and credit card fraud.  The standard Comprehensive General Liability (CGL) policy may have coverage for some internet related liability complaints.  There are numerous exclusions and ambiguities as relates to internet liability under a standard business liability policy that make it unsuitable as your only internet liability coverage.  If you have a website, you should look into this valuable coverage.

You have worked hard to build your business; one uncovered loss can bring it all down.  Take a moment to review your commercial insurance policies and discuss your individual needs with your broker.

(0) Comments Permalink