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Commercial Insurance: What's Covered

Depending on what insurance you purchase, exclusion and maximum payouts could determine if insurances companies are acting in good faith to get you (and your company) back to normal. 

Commercial insurance is a vital safeguard for businesses, protecting them from various risks and liabilities that could potentially cripple their operations. From property damage to legal disputes and employee injuries, commercial insurance plays a crucial role in keeping your business afloat when the unexpected occurs. In this article, we'll delve into the components of a commercial insurance claim and explore what typically falls under its coverage.

1. Property Insurance: Protecting Your Assets - Property insurance is a cornerstone of commercial coverage, safeguarding your business premises, equipment, and inventory from damage or loss due to unforeseen events. These events may include natural disasters such as fires, floods, earthquakes, or theft and vandalism. Property insurance can also extend to cover property damage caused by third parties, like a vehicle colliding with your storefront or machinery.

The key to successfully filing a property insurance claim is to maintain accurate records of your business assets, their values, and any improvements or renovations you've made to the property. Additionally, staying current with your premium payments is essential to ensure your coverage remains in force.

2. Liability Insurance: Protecting Your Business from Lawsuits - Liability insurance is designed to protect your business when someone claims that you or your employees are responsible for causing harm, injury, or damage to them or their property. It typically covers legal fees, settlements, or judgments that arise from such claims. Common forms of liability insurance include:

  • General Liability Insurance: This coverage protects your business from a broad range of liabilities, such as slip-and-fall accidents on your premises, product defects, or advertising-related claims.
  • Professional Liability Insurance: Also known as errors and omissions (E&O) insurance, this coverage is critical for businesses that provide professional services, such as doctors, lawyers, or consultants. It protects against claims of negligence, errors, or omissions in your services.
  • Product Liability Insurance: If your business manufactures, distributes, or sells products, this insurance protects you from claims arising from injuries or damages caused by a defective product.

To file a liability insurance claim, you'll need to provide detailed documentation of the incident, including witness statements, photographs, and any correspondence related to the claim. It's also crucial to inform your insurer as soon as you become aware of the incident, even if you believe your business is not at fault.

3. Workers' Compensation Insurance: Protecting Your Employees - Workers' compensation insurance is a mandatory coverage in most states that provides financial assistance to employees who suffer work-related injuries or illnesses. It covers medical expenses, rehabilitation costs, and a portion of the employee's lost wages. By carrying workers' compensation insurance, you protect your business from potential lawsuits filed by injured employees.

To file a workers' compensation claim, the injured employee must report the incident to their supervisor or employer, who will initiate the claims process. Proper record-keeping, documenting the injury, and adhering to the reporting requirements are essential to ensure a smooth claims process.

4. Business Interruption Insurance: Protecting Your Income - Business interruption insurance, often bundled with property insurance, helps your business recover lost income if it must temporarily shut down due to a covered event. This type of coverage can be a financial lifesaver when your business is forced to close its doors for a period, such as after a fire or natural disaster.

To make a business interruption claim, you'll need to provide financial records and evidence of the covered event's impact on your business's revenue. This documentation is vital for demonstrating the extent of your loss and justifying the claim amount.

5. Cyber Liability Insurance: Protecting Your Data - As the digital world becomes increasingly prominent, cyber liability insurance is a vital component of coverage. It safeguards your business against data breaches, cyberattacks, and the potential legal and financial consequences associated with these incidents. Cyber liability insurance can cover the costs of data recovery, notification of affected parties, and legal defenses in the event of a lawsuit.

In the event of a data breach or cyber incident, it's crucial to report the event to your insurer promptly and cooperate fully in the investigation process. Maintaining robust cybersecurity measures can also help mitigate the risk of cyberattacks and bolster your insurance claim's success.

When a claimable event happens, it is important to remember your claim might cross policies, example of this would be a natural disaster that destroy’s your place off business, inventory and opens you up to a cyber attack. Hiring The Voss Law Firm can help make sure you get what you are entitled.

Comprehensive Coverage for business resilience commercial insurance is a multifaceted safety net for businesses, offering protection from a wide range of risks and liabilities. Whether it's property damage, legal disputes, employee injuries, business interruption, or cyber threats, having the right insurance policies in place can mean the difference between a temporary setback and a catastrophic loss. To maximize the effectiveness of your commercial insurance coverage, maintaining detailed records, promptly reporting incidents, and working closely with your insurer are essential steps in the claims process. With the right protection and the proper procedures in place, your business can better weather unexpected storms and continue to thrive.

At the Voss Law Firm we strive to help you get back to normal as fast as possible after an insurance denial or “low ball” offer, even if the insurance company is delaying. 

If you feel you have been unfairly treated by your insurance company, please call (888) 296-1986, input your information for a Free Claim Review or chat with us today.

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The Voss Law Firm, P.C. represents clients on a local, national and international basis. We proudly serve companies and individuals along the Gulf Coast and around the globe on a contingency fee basis. Our law firm collects nothing unless we recover on our client's behalf.

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