Commercial Package Policies Protect Against Broad Business Risks

It can cost a great deal of money to properly insure a commercial operation against a wide ranges of potential perils, but the combined property and liability insurance coverage from businessowners package policies make it much more affordable. Various retail and service operations in particular benefit from such insurance protection, such as an auto repair shop that might be liable for faulty repairs resulting in an accident, a supermarket that has a customer injured in a slip and fall accident or an apartment or residential housing association that needs to protect against liability from potential accidents on common grounds as well as the property itself.

Among business interests that can be covered with a combined business insurance package are the properties of customers, who might suffer significant losses due to some action of an employee or by some mishap occurring on the insured property. In such a case, the liability portion should pay up to policy limits for covered perils. And like inland marine insurance, a business package plan can insure property while it is in transit.

Many commercial businesses have cyclical years in which business has one or more peaks or valleys. During peak periods, inventories typically are higher, requiring a greater level of insurance coverage. But when times are slower, the amount of coverage can be reduced to help lower costs. And business income can be protected with commercial package policies that protect against losses of income arising from covered perils that interrupt the business cycle. If a fire guts a warehouse and it is out of use for a number of months, the lost revenue from not being able to use it as part of commerce could be recouped through business income coverage through a combined package commercial insurance plan.

Coverage also can be extended to protect against damages caused by the actions of local governments. If a local unit of government enacts a law that requires a business to undergo a great deal of expense to comply with new regulations, a combined package could cover it up to policy limits. That means if a business suddenly has to erect tall fencing or undergo costly upgrades to comply with a new ordinance, the cost of that expense would be covered as well.

Combined package policies for commercial enterprises also can be modified to help protect against additional risks, such as physical damage to hired autos when using leased or rented vehicles for commercial purposes. And equipment breakdown coverage can help a firm get up and running as soon as possible if critical gear or equipment fails and must be replaced at nearly any cost. Many insurance plans do not protect against losses caused by an earthquake, but a special rider can be made to do just that with a combined package plan. Even the cost spoiled merchandise, such as produce, meat, poultry, fish or frozen goods, caused by a power outage or equipment failure could be recouped through a spoilage rider. By Mike Heuer