Market Segments Insurance Has Specialized Coverage

Commercial enterprises of all kinds face special risks, and market segments insurance is a type of supplemental insurance that can provide the specialized coverage some firms need to protect against the kinds of business risks that are unique to their operations. For example, restaurants and supermarkets have special risks that other businesses typically do not encounter, such as the potential for food and products to spoil in the event of a power outage that shuts down freezer and refrigeration units and lasts long enough to cause spoilage.

In such an instance, a supplemental, segmented insurance plan for restaurants and supermarkets would provide coverage up to policy limits for the cost of damaged or destroyed products as well as the cost of taking reasonable preventive action to limit the damage to as little product as possible. If a new refrigeration unit needs to be rushed in and installed overnight, the insurance plan would cover the costs up to policy limits and minus any potential deductions.

Restaurants have a specialized insurance plan available for each of its many types of commercial operations. Small delis, diners and coffee shops do not face the same risks as full size gourmet restaurants seating hundreds.

Another type of commercial enterprise in need of market segments insurance is the auto services, which can get supplemental auto service risks coverage. If a car rental company or an auto repair shop were to do something that caused an accident resulting in injury or death to one or more people, a supplemental auto service risks coverage likely would pay up to policy limits for damages, financial costs and bodily injury liability. The segmented plans are niche-oriented and highly specialized to cover the unique risks of each type of business.

One firm that developed market segments insurance plans is ISO, which is one of the leaders in the insurance field, especially underwriting restaurant and supermarket operations.

“ISO developed specialized coverages for restaurant and supermarket establishments, so insurers that are growing by targeting high-potential market niches can adopt our ‘ready-to-use’ programs,” said Domenick J. Yezzi Jr., ISO’s vice president of specialty commercial lines. “We want to make it even easier and more convenient for insurers to focus on what they do best – provide their customers with more value-added products.”

Among those value added products are special coverage to help pay the cost of removing debris in the event of a covered peril that caused a great deal of damage to facilities and equipment. If a fire department must respond and levies a fee for fighting a blaze or other mishap, coverage could be had for the fire department service fee. And while money and securities are excluded from most commercial property insurance plans, a specialized money and securities rider would cover such losses up to policy limits.

There are a lot of good reasons for specialized commercial businesses to obtain specialized coverage, not the least of which is to protect their business interest and keep their workers employed. By Mike Heuer