Commercial Premise Insurance



When you have the protection of the best insurance company in the world with commercial premise insurance, you have confidence that your property is in good hands. Many insurers promote their services with claims that they are there to help you when a catastrophe hits. But when fire or other calamity damages you building and destroys your inventory, they are often slow to send an agent to inspect the damage and pay your claim. They know that every day that passes without paying you amounts to interest that they continue accruing on all the premiums that you paid over the years. Your financial loss is their gain. It seems the worse the financial shape they are in, the slower they are to pay. There is a reason for that and there are a couple of things you should consider when shopping for business property insurance.



First, with a little online investigation you can check the financial standing of insurance companies to get a rating before you commit to a policy contract for any kind of coverage. There are a number of companies that make it a business of providing third party information about the financial standing of insurance companies, but four of these companies stand out in the ratings industry: A.M. Best, Moody's, Standard and Poor's (S&P), and Fitch. They understand that insurance companies that have not sufficiently prepared for the liability of a natural disaster that causes widespread property damage, such as a flood or hurricane, could end up in financial straights. "AAA" or "A++" is the best rating, and you should never go with an insurance company that has a suspended, extremely poor, not rated, or distressed rating. An insurance company that has an "F" rating, which is one grade up from a suspended rating, would be described as "Company is undergoing voluntary liquidation." You don't want that.

Second, consider only the type of policy you need, not the one they want to sell you. Policies that the insurance companies issue are often very similar. Generally, they fall under one of two categories: Liability, and Damage to business equipment or business property.

Liability will cover property damage or bodily injury caused by your business. A few good examples are if a tree on your property was blown over by the wind and it landed on someones (hopefully) unoccupied car, if a negligent employee was mopping the floor and someone slipped and fell, or if a door slammed shut and delivered a blow to someone, causing injury. In such cases, the person would have legal cause of action to bring a lawsuit in court against you. Unfortunately, there are a plethora of personal injury attorneys just looking for this kind of case, even though it might not be any fault of the business owner.

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