Office insurance is something that no one has a fun time talking about. Just the very word "insurance" can instantly induce glazed eyes because most of us know how boring and complex the subject can be. It also brings up images of being very costly. But, big or small, commercial office or residential-based, one thing is as certain as the sky is blue: a business, any business, needs office insurance to protect its interest, assets and reputation.
Even mega transnational corporations need insurance against certain risks or allegations of negligence, which can lead to serious issues, if not outright financial disaster. A small business is certainly in the same position as a large corporation; maybe even more so because a small business doesn’t have the financial means to defend against the risk of negligence. Legal resources needed to fight claims of this nature can get pretty steep.
An unexpected event, such as a natural disaster, a market crash or an ill-timed project failure can also profoundly impact a small business, both in its recovery and survival. Risk is exceptionally high in a very litigious world, where litigation has become the status quo in settling most grieves, which makes far too many uncertainties a reality for a business to take a chance or assume they’re prepared to effectively defend against any potential threats that may unexpectedly arise.
A dismal financial market, a failed project that was heavily financed, legal liabilities, accidents, natural disasters can leave a small business especially vulnerable and on the wrong end of an adversarial situation at any given time. Even the most prudent and wisest business person can’t forecast the future, which means all businesses, especially smaller ones, must be prepared for the probability of risk, or situations that might have an adverse effect on the stability and financial health of the operation, which include:
• Protecting the business in the event of a lawsuit.
• Proactive action to avoid injury claims.
• A buffer that allows the business to continue in spite of distress.
• Minimizing adverse impact of the unforeseen.
• Maximizing overall business security.
Taking the necessary steps to find insurance information online is small business risk management in action, even if it’s just a small one. But to ensure your business gets the proper office insurance policy it needs, it first has to be sure that it even qualifies as a small business. The following are several factors that might be taken into consideration when determining an office insurance plan:
• The nature of the business
• Its location
• Whether the business is a commercial office or home
• The building’s age
• Other occupants in the building
• The business’s projected gross
• How many employees, if any
• How many vehicles used specifically for the business
Once these estimations are made, information can be researched and attained online to get a basic policy plan that might be required. There are, of course, quite a few types of office insurance policies a business may need. The most basic plan and probable insurance plan requirement is commercial general liability (CGL). There are four specific types of CGL coverage that include:
• Personal Injury
• Property damage
• Medical Payments
• Tenant Liability
If the business owner is a tenant, then some of those may not apply because they are already covered for potential damages to the property, such as ruptured plumping, a hurricane or a fire. There are also a rather large assortment of insurance policies that are associated with those above that might be considered, such as:
• Workers’ Compensation
• Business Interruption
• Commercial auto insurance
These are the policies that will safeguard a business and its employees against any and all potential liability or risk. Business management should not only have a clear assessment of the type of business they run, but a clear understanding of the various types of office insurance policies that are either required or necessary.
By Andre Bradley