Explaining Commercial Insurance As Simply As Possible

Insurance can be overwhelming to say the least.  Commercial insurance covers a wide range of issues, coverage options, and exclusions.  Let’s look at trying to keep it simple to look how your commercial insurance works.

How does my business insure:

Property and Buildings

Property and Casualty insurance covers building and property.  As simple as that seems, there are a number of losses that aren’t covered, such as flooding as one example.  Just because your business is in leased space and not owned also does not mean you can go without property and casualty insurance.  Don’t assume homeowner’s insurance will protect a home based or part time home business.

Auto and Truck

A commercial auto insurance policy will cover your business vehicles and their drivers.  Again, while seeming quite simple, many business owners assume a variety of risks by using their cars and assuming a personal auto policy will cover any risk.  Sometimes, the auto coverage can be combined with Property and Casualty in a Business Owner’s Policy.  Check with your commercial insurance broker to determine your needs.

Workers Compensation

Every business must have workers compensation in place to protect them if an employee is injured on the job.  Some states also require additional coverage be provided.  Work with your commercial insurance broker to determine what coverage is mandatory.

Ask your insurance agent/broker about other options available for your business.  There are a great number of coverage options available to protect your business.  Discuss with your agent about what risks your company faces while conducting your day to day business.

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Technology Drives Trucking

Technology is now behind the wheel of the Trucking Industry.

 

Technology and the Federal Motor Carrier Safety Administration have teamed up to drive the trucking industry.  I see this to become a good thing for the insurance industry and for consumers.  The rollout of Compliance Safety Accountability, which is a new safety program, places more responsibility upon the driver than the fleet.  In turn, more trucking companies will become more diligent in hiring.  This may lead to a temporary shortage of drivers, but trucking companies will become more efficient in deliveries in the long run.  The industry has been plagued with higher fuel costs, increased health care and increased regulation.  But now that there has been a slow increase in the economy, companies are taking a new look for efficiency and profitability.  Many are adding rear-view cameras inside the vehicle.  Others are adding electronic log books and satellite tracking systems.  All of these aid in the overall management of the business.  But other devices such as recorders of accidents, lane-departure warning devices and electronic monitors improve driver’s behaviors.  All of these improvements and good hiring practices by the trucking company will eventually have a positive impact upon truck insurance.  Not only will consumers benefit, but insurance for the trucking industry will decrease.  If you would like more information regarding your truck insurance, call one of our agents.  We will be happy to talk about protecting your financial assets.

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 Commercial Insurance.Net, LLC Advisor is not an attorney, accountant or certified financial planner and makes no representations or warranties to that effect.  Always check with your chosen professional as to statements made in this blog for your particular situation.