When buying commercial liability insurance you'll need to decide on many different coverage options. That's why it's important to get educated concerning insurance before your company opens for business. Safeguarding your business and private assets is of utmost importance.
The first option is coverage amounts. Having enough coverage is essential for a business because if you don't, your business must absorb the loss from being under-insured. In the case of a judgement or settlement against your business that exceeds your policy limits, you could find yourself out of business and might even jeopardize your personal assets.
Insurance providers use underwriting standards to determine whether you are eligible and for how much coverage. Insurance firms have categories for commercial insurance and your business rates will be determined in part by the category your business falls under. For this reason, even if you company has a clean history you may still pay a high premium for your business insurance.
Commercial liability insurance policies typically have specific dollar limits on claims so be sure you choose a policy that matches your potential liability. If your business has higher than average risks you should carry more coverage. If for instance you own a window washing company in New York city and your workers are on scaffolds hundreds of feet in the air, even a one million dollar limit policy may not be enough. After all, imagine the worst case scenario and whether life or limb could be at risk - not only your employees, but innocent bystanders as well. I'm sure you could imagine a lawsuit judgement or settlement in this case going well over $1 Million dollars or even $5 Million dollars for that matter.
If your business demands higher insurance policy limits than the usual liability insurance policy can offer, ask your insurance agent about an umbrella policy. Umbrella policies, or excess liability coverage can provide greater limits on policies such as general liability, employer's liability and are an affordable way to get higher policy limits on some small business insurance policies. But note that umbrella liability insurance does not extend the coverage limits on an errors and omissions (E&O) insurance or professional liability policies. A licensed professional can explain this option to you before you take out a policy, so find a general business insurance broker to help you navigate the tricky field of commercial liability insurance.
When choosing commercial liability insurance for your business, do your homework and obtain more than one estimate for monthly or annual premiums. Make sure your business will be well protected in any scenario possible. The lowest priced insurance quote more than likely will not give you the best protection.
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When buying commercial liability insurance you'll need to decide on many different coverage options. That's why it's important to get educated concerning insurance before your company opens for business. Get more information at: http://contractors-liability-insurance.org/
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