Insurance Insights

Commercial property loss occurs more often because of crime-related incidents than any other cause. Employee theft is one of the largest vulnerabilities of commercial crime, but it’s not the only crime-related exposure that a small business faces. Forgery, alteration, non-employee robbery or theft of money or securities, money order fraud, counterfeit paper currency fraud, and computer fraud are all other crime-connected risks that puts your business at an increased exposure for loss.

A lapse in small business insurance means that your insurance policy has been terminated. It can occur as a result of failure to pay the premium or because the policy contract becomes void for other reasons, such as not meeting the insurance carrier’s requirements. But regardless of the reason, there can be repercussions of a lapse in insurance.
Here are at least four reasons a lapse in small business insurance is bad.
1) Reinstatement Fee. If you allow your insurance coverage to lapse, you insurance carrier will have to prepare the paperwork again to reinstate your policy. There are costs involved in preparing this paperwork, which you will be responsible for. If you’ve only had a very short-term lapse in insurance or you are a first-time lapse in insurance offender, your insurance carrier may waive the reinstatement fee. That is, your insurance carrier might overlook a one-time lapse in insurance. However, be prepared to sign a statement of loss, which denotes that you didn’t have a claim while you had a lapse in coverage.
2) Policy cancellation. If you are a habitual offender in terms of letting your insurance lapse, you could be subject to a cancellation of your insurance policy. Since insurance carriers review small business insurance applications on a case-by-case basis, if you have a past history of non-payment and insurance lapses, it may make it more difficult to get signed on with another carrier.
3) Loss of long-tail coverage. Depending on the policy, policy holders can be rewarded for lack of claims, but also for continuous coverage. You stand to lose this advantage if you have repeated or long lapses. If your policy lapses you may not be covered for a claim that has already occurred but not yet reported.
4) No insurance. Potentially the most devastating reason a lapse in small business insurance is bad is that you don’t have insurance. Depending on the policy, this means you don’t have general liability, property coverage, commercial auto coverage, defense costs coverage, and more.
Most insurance policies require that premiums be paid at designated intervals during the policy period or at the beginning of the policy period. Therefore, make it a habit to ensure your insurance payments are up-to-date and never lapse.

When investing in small business insurance, it is important for owners to understand what type of coverage is included in a basic policy. Once this is made clear, business owners can then decide if additional protection is necessary, allowing them to amp up their initial plan for optimal protection.

When searching for the best commercial insurance for your small business, it is crucial to compare rates, as well as terms and conditions from multiple providers. However, there are some basic things to understand before narrowing down the selection of prospective companies.

The first step toward protecting your small business is to seek a business insurance quote and invest in the best coverage possible. While there are many different types of plans that can be bundled together for an optimal policy, owners should understand the process of filing a claim should their company sustain damage or otherwise be involved in an accident or incident.

Depending on the state in which your business operates, your requirements for workers’ compensation systems can vary. This is one reason why understanding the basics of Workers’ Compensation Insurance is so important to business owners when purchasing coverage for their company and their employees.

As a business owner, you may not be well-versed in all the jargon thrown around by business insurance companies, and that is fine since your agent will likely guide you through the basics. However, you may benefit from understanding some roles that come into play once a claim is filed, such as the duties of an insurance adjuster.

When starting your own business, finances can be tight, but business insurance is not the place you will want to start skimping.  There are some ways to ensure you are getting the best deal on coverage for your company, just remember to never substitute quality insurance for a good deal.

After developing a solid business plan, many business owners begin to look at options for commercial insurance. However, there are some myths surrounding the investment that should be debunked before owners purchase coverage.

For many small businesses just getting their start, it makes the most financial sense to headquarter out of the owner’s home, though it could be a costly mistake to assume your home insurance policy will include coverage for the company.