As there are infinitely many types and sizes of businesses, knowing how to best insure a specific company can be confusing. The right insurance policy depends on many factors, such as how many employees a business has and what type of work they are engaged in, what unique liabilities and risky situations come with a particular industry, and the amount of capital and assets held. This article offers basic questions and answers for anyone trying to determine the best type of commercial insurance in Cape Coral for their business.
What Is Business Or Commercial Insurance?
On the surface, commercial insurance works in very much the same way as any other type of insurance. A business enters into an agreement with the insurance company where, in the event of a specific type of damage or loss, the insurer will make a payment to the company to cover it. When a loss occurs, the business files a claim with the insurer who will judge its merits. There are many differences, however. For example, while property insurance will cover damages to equipment or buildings, it does not cover lost revenues incurred while the damages prevented the business from operating. This is one of the types of coverage that commercial insurance can offer.
How Costly Is Commercial Insurance?
As the specific type of coverage plan varies widely, so does the cost. Commercial Insurance in Cape Coral can run well under $1000 annually for a small or home based business, and up to several hundred thousand dollars a year for big companies that take on large levels of risk.
Is A Business Legally Required To Be Insured?
Most types of business insurance are not legally required, but there are some instances in which they are. One example is worker’s compensation insurance. This is to cover medical expenses and lost income by employees injured on the job. Also, some states require professional liability insurance, which covers damages to people or property due to mistakes made by employees.
The question of how to best insure a business is a complicated one, and one that requires further research combined with a careful analysis of a business’s particular needs. Often, the services of an attorney are helpful to determine any potential liabilities.