What’s the difference and what do you need to know?
No one ever really wants to talk about insurance. It seems pretty negative, especially when a new business owner is quite excited about striking out on his or her own.
The insurance conversation, though, is an important one to have—particularly for small businesses. There are unforeseen risks out there, and if one is not prepared, any one of them can damage a business so badly that it may not be able to recover. Let’s not forget that it can also endanger the personal finances of the business owner.
Two types of coverage, one purpose
Most business owners tend to carry both commercial property and business liability insurance policies— and for good reason. Although each type of insurance is designed to protect a business, they do so in very specific ways.
• Commercial property insurance basics: Very often, a business is a child that never grows up. It needs constant attention and nurturing from the owner. It also needs protection from the dangers lurking around every corner: fire, lightning, windstorm, hail, explosions, vandalism, and theft. OK, so it’s a bit more extreme than the common needs of a child—but that kind of makes it all the more important.
A commercial property insurance policy protects the physical assets of a business, including the structure, furniture, equipment, inventory, fences and landscaping, signage, and other peoples’ property. It can also cover general property including machinery and business equipment, business equipment breakdown, motor truck cargo, vehicle physical damage, schedule property and contractor’s equipment.
• Business liability insurance basics: To keep initial costs down, many small business owners may skimp on proper insurance coverage. They will work tirelessly to keep things perfect.
But even as perfect as things might be (or seem), there are lapses in responsible conduct—and innocent mistakes unfortunately always have the possibility of happening. Any straying from the perfect path is still your responsibility, and as such, can result in lawsuits both real and frivolous.
Where the commercial property policy covers damage to objects, the business liability covers injury to the people who have contact with your business: customers, employees, vendors, suppliers, and partners.
Deciding which policy and how much
To help provide the best coverage for your small business, it’s important to discuss with your insurance agent the risks associated with your industry, the location in which your business is at, your business assets, and any other aspects associated with your company. That conversation can lead to determining which type(s) of liability insurance—and there are several—would provide the most comprehensive coverage. These can then be bundled to provide comprehensive, more specific coverage options.
Your south Florida insurance partner
Avante Insurance understands the risks involved when starting or overseeing a commercial venture. We also understand the worries.
Our team of experts can advise on the types of coverage would best suited for your business. Having that support and financial assistance can help businesses quickly return to business. Contact our team at 1.305.648.7070 or complete our online contact form.