Are you confident your property and casualty risks are covered?
When it comes to protecting your business, the risks you face are unique and often much more complex than you might realize. You know you need to properly insure your assets, but do you really feel confident that you are well protected in the event of the unimaginable? Are you covered in case of a fire to your building? What if a flood or tornado causes damage? And, the risk of earthquake damage is also very real, especially in Western Kentucky. What is your responsibility if someone is hurt at your facility? Or what if one of your employees causes damage or worse? And like every business in every industry, the chance of being sued is always lingering.
If you don’t know how much business insurance you need, you are not alone. This is especially true for small business owners. An article by Entrepreneur points out that 75 percent of businesses in the U.S. are underinsured by 40 percent or more. And even more concerning, they share data from SCORE that shows 40 percent of businesses never reopen after a disaster. Sadly, that could happen to you.
We understand you are busy running your business, and the last thing you want to think about is what insurance coverage you need for your company. And when you do start to think about insurance, it’s easy to become overwhelmed. But nothing is more important than to ensure your business is protected from risk. After all, you don’t ever want to learn about the details of your insurance policy when you are told your business isn’t covered for a claim.
In the world of business insurance, we classify coverage in two primary categories: property and casualty insurance. Let’s take a closer look at each.
Commercial property insurance can pay for business property that is stolen, damaged or destroyed. This could include:
- Your physical building and the permanent fixtures and equipment inside.
- The contents of the building, such as inventory and office supplies.
- Other people’s property that has been left in your care, custody or control.
Every facet of your business, industry, location and financial impact needs to be properly addressed. Keep in mind that property insurance coverage is not one size fits all. For example, your policy may cover damage from fire, but exclude damage from earthquakes or floods. You should also consider coverage for business income loss in case an event causes your company to cease operations temporarily.
Casualty insurance provides coverage when the policyholder is found liable under law for something, such as damage or injury to another person. Common liability coverage you should consider includes:
- Commercial General Liability, which covers customer injuries or property damage, as well as lawsuits arising from either of these.
- Professional Liability, often referred to as Errors & Omissions, which protects your business financially from lawsuits over your job performance.
- Employment Practices Liability Insurance, which covers defense costs and damages for employment-related claims, including allegations of wrongful termination and discrimination.
We’ve all heard the horror stories, so we don’t have to tell you that you could lose your business as the result of a single incident. Yet, can you honestly say you’re confident in your coverage? If you even hesitate for a second, you should seek the expertise of a professional insurance advisor to help you understand your risks. Then you can make informed decisions.
Let’s face it, the insurance industry is complex and if you’re not acutely aware of the constant changes, you are going to need help. At Peel & Holland, we can evaluate your existing coverages and identify where there may be any coverage gaps and find the insurance you need to protect everything you’ve worked so hard to build.