Five Overlooked Commercial Insurance Options for Starting a New Business Venture
Business interruption insurance- A wind storm tears the roof off of your building and it takes you or the landlord two months to get it repaired. This insurance will cover you for all loss of income and expenses that resulted from the property damage. It will reimburse you for all rents, taxes, salaries and even your net profits loss over the two month If you are planning on starting a new business, then you might have already considered the standard commercial insurance policies available to you. The standard commercial insurance concentrate on the following three areas of coverage:
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Law or Ordinance Insurance- You purchase a 125 year old building and set up business. A fire destroys over 50 percent of the building. As it so happens a local ordinance requires that now the building must be completely torn down and replaced with a new structure that must be constructed according to current building codes. Guess what? Standard property insurance covers only current replacement costs, not the cost of the upgrades!
Boiler and Machinery Insurance- You run a shipping company and a water pipe bursts on the second floor and water pours out of the ceiling drenching your computers and ruins the server. You now have to hire a data retrieval company to come in and salvage your account and billing information. This type of coverage, commonly known as 'equipment or mechanical breakdown coverage', will usually reimburse you the cost of both the property damage to your computer and the business interruption losses you incur.
Debris Removal Insurance- You has just purchased a 25,000 square foot warehouse to begin your Tool and Die business. The heavy machinery has been moved in and you are now ready to open your doors when a fire sweeps through the entire building gutting it. Ah! You think; 'lucky I have complete comprehensive fire insurance that covers loss of equipment and reconstructing the building!' Guess what? Before you can rebuild you must remove the rubble. Your property insurance policy will cover all those things but will NOT cover the cost of debris removal and those 10 ton presses are heavy! Debris removal insurance will cover the cost of taking away the wreckage.
Errors and Omissions Insurance- You take your new site authorizations to the notary and have them notarized. Everything seems in order so you submit them in time to meet the construction deadline your company had been given only to find out that the notary mistakenly omitted a crucial page or line and now your construction will be delayed for an additional two weeks causing another company that was depending on your meeting the deadline to suffer a substantial loss. This insurance covers any inadvertent errors or failures that cause injury to a third party.
Depending on the type of business you have or are planning to start, any or all of these five commercial insurance options could turn out to save your company in a time of crisis.