5 Things You Should Never Assume About Commercial Insurance

February 24, 2022

Commercial insurance is widely used by businesses that either own, lease or rent commercial property. Be aware that different insurance companies create their own unique plans, although many have the same general features. Here are 5 things you shouldn’t take for granted while signing up for commercial insurance.

  1. Comprehensive General Liability Is All-inclusive

    The term “comprehensive” doesn’t always mean what people think it means. Over the years, insurers have reshaped comprehensive commercial plans as the core of Commercial General Liability coverage. Some insurers may limit the coverage to bodily injury and property damage. No matter what type of plan you choose, read the fine print so you aren’t surprised later with hidden fees and less coverage than you thought.

  2. Bundling Commercial Policies Is Economical

    Most of the time you can get a discount when you bundle different insurance policies together. However, there are still situations in which you’re better off not bundling to get the best deal. Be careful of some insurance companies that try to get you to buy all kinds of different coverage extensions you don’t need, without ever offering a discount. Many businesses opt for a Business Owners Policy (BOP), which combines commercial property with general liability insurance.

  3. Property Insurance Covers Flooding

    A commercial property insurance plan doesn’t usually cover flooding. Broken pipes might be covered under some standard plans, but flooding generally requires buying extended coverage. Your business location will be a significant factor in determining how much you’ll pay for flood insurance. Areas prone to regular flooding are associated with higher insurance costs. However, the weather is becoming less predictable due to climate change, so flood insurance can still be expensive in places that don’t experience frequent flooding.

  4. Liability Insurance Covers You Wherever You Go

    You can’t just plan a vacation to another country and expect your commercial liability insurance to cover you for everything that goes wrong on your trip. It will become a major hassle if you cause an accident overseas without having the right coverage in place. A standard commercial insurance policy in the United States usually covers Canada and U.S. territories, but beyond that, you’ll need to check with your insurer. Most likely, you’ll need an extension to your standard policy.

  5. Commercial Auto Insurance Covers Hired Vehicles

    While you definitely need commercial auto insurance for vehicles your company owns, some business owners might assume this coverage includes renting vehicles, but it doesn’t. You’ll need to add an extension to your standard policy for any vehicles you use but don’t own. There are about a half million trucking accidents per year in the United States, which drive insurance rates up for everyone. Make sure your drivers have clean driving records, which can help lower monthly premiums.

Every company should consider the advantages of commercial insurance. Although it’s not required, it’s a valuable safety net to protect your firm’s financial assets. Contact our experts at Gant Insurance Agency for more information related to business insurance. We are happy to help you get customized coverage for your enterprise.