Contractors and Commercial Operations: Why You Need Insurance

 

If you’re thinking of passing on getting your company insured, you’ve practically signed your own business’ death warrant. With the global economy fluctuating in unpredictable tides, the best you can do is secure yourself against possible losses. It doesn’t even have to be purely economic; your company may suffer crippling setbacks from natural calamities like floods and tornadoes. Other circumstances might not be so catastrophic, but may also have negative effects on your company’s dynamic, such as possible lawsuits, and employee injuries that might take its toll on a company’s financial health. It’s always a good idea to enter a business well-prepared, and protecting the company assets with a bulletproof business owner’s policy (BOP) is one way of doing so.

Quality commercial insurance policies may cost, but the tradeoff is well worth it, as you get to sleep at night with the assurance that your company’s finances are sufficiently protected. An agreement is usually mapped out to better flesh out the details of an insurance policy, and while these may vary from entity to entity, these are usually the events that you are protected from when entering a deal with an insurer:

A. Commercial Property Damage

Several business liability insurance in Philadelphia provide for Commercial Property Damages such as the following:

1. Natural catastrophic losses

2. Theft

3. Vandalism 

It’s important to note that insurance policies (particularly for small business liabilities) can be quite extensive in their coverage, including furniture, computers, files, inventory and other components that a business needs to effectively function. 

B. General Liability

If you work with employees, it’s part of your job as the head of the company to account for any mishaps that involve them, including product defects, injuries, as well as any lawsuits that may come your way. This is courtesy of the accountability principle, which can be a lot of pressure if you’ve expanded from a small to large business. The General Liability policy, however, keeps you covered from legal expenses, medical payments and other lawsuit-related costs. You can contact a general contractor insurance in Philadelphia to get professional consult for construction operations. 

C. Worker’s Compensation

There are few exceptions to Worker’s Compensation Insurance, and is mandatory for all businesses, at least, for businesses based on American shores. For instance, a workmans comp coverage provides for the worker’s lost income and medical expenses from work-related injuries or illness. 

D. Professional Liability

A professional liability clause in your company insurance is a must for businesses that are involved in the health care field, business consulting, architectural design, and others. This is because these fields are particularly prone to professional liability claims from clients regarding physical injuries, property damages or misrepresentation. Professional Liability Insurance covers legal, court and investigation costs should you happen to come across lawsuits of this kind.

Surety Bonds

A Surety bond is nothing more than a contract between three business parties where the principle party is made whole for contracted services should the contractor fail to meet his or her obligations. The party offering surety is usually the reinsurance entity. Surety bonds protect the interests of consumers, with the terms varying based on specific industry regulations.

While surety bonds are related to insurance, they are different from the normal general contractor insurance in Philadelphia, and is largely unrelated to commercial auto insurance for Bucks Co businesses that have business vehicles. 

Still, business owners are usually required to make bids on most municipal and state-funded construction projects when it comes to surety bonds in Philadelphia are required to bid on most municipal and state funded construction projects. It’s important to note, however, that not all insurance broker in Bucks County can issue surety bonds. Look for brokers with partnerships with specialized reinsurers and underwriters. 

It might seem one of the more daunting aspects of putting up a serious business, regardless if it’s small, but navigating the commercial ins in Phila and its surrounding counties is highly essential to building a business’ safety nets.

 

 

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