Every business needs insurance. Proof of general liability insurance is required by your landlord before you sign your lease. Workers’ compensation insurance is required by the state before your employees can come to work. Other forms of insurance protect your business and your personal assets from business-related risk. The use of an independent, experienced insurance broker like Desert Insurance Solutions is highly recommended.
Some of my personal lines clients are surprised to learn we write business insurance because we are a boutique agency. “Boutique” doesn’t mean limited range of services; it means we strive to deliver a higher level of service to a limited number of clients. Some of our larger commercial clients include a luxury hotel currently under development, a restaurant chain with 16 locations and an investment advisor with over $1 billion in assets under management.
Without the proper service from their broker, businesses can run into trouble with their insurance. Here are some examples:
Limits
A small business might establish loss limits that are required by a landlord to rent space. If those limits aren’t updated over time, business assets could grow to exceed them, risking exposure to uninsured lawsuit expense.
Coverages
Many risks are not covered by a standard business owner’s policy (BOP) including professional liability, cyber-liability, employee lawsuits and earthquake.
Claim Timing
Some contracts cover losses if they occur during the policy period, and others cover losses if the claim is made during the policy period. Businesses need to avoid gaps.
Contract Terms
Example: One of your employees drives their car to grab lunch for the team and they get in accident. Your business is liable and, unless you have a hired/non-owned auto coverage endorsement on your general liability policy, it’s not covered by insurance. Ouch!
If you have commercial insurance with Desert Insurance Solutions, I think about this stuff for you. We also provide loss mitigation advice and, when appropriate, engage independent loss control engineers. If you have a business, give us a call!