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Commercial Insurance

Commercial Insurance Covers Your Risks

Commercial Insurance Birmingham AlabamaCommercial insurance can be complex and includes a broad range of policy options designed to protect a business from financial loss. Every commercial operation has its own unique set of risks, which means a commercial insurance policy must be tailored to the business. Many factors ranging from the size of your company, to the number of workers you employ, the materials they handle and whether you have business vehicles, will determine the specific coverage you need to mitigate risk and protect your company’s financials.

You need an agent who can provide not just one portion of your business insurance needs, but all of your commercial coverage, from commercial vehicle insurance to professional liability coverage to workers comp.

The Most Common Commercial Insurance Policy:

General liability insurance provides insurance protection for a company’s assets, financial obligations, legal defense, and any settlements or judgments awarded to an injured party. It may also include claims for copyright infringement, false or misleading advertising, or libel and slander. If a customer is injured in the course of doing business with your company, your general liability insurance will provide coverage.

Other Types of Commercial Insurance Policies

Every commercial operation needs business insurance. The specific blend of coverage types you need for your business depends on many factors. We will be able to recommend a package combining the coverage types you need, tailored to your risk management concerns.

For example, you may need some combination of the following types of commercial coverage:

  • Builder’s risk insurance: also called “course of construction,” insurance is a type of property coverage for buildings under construction, as well as all of the materials and equipment used in the project. You will typically need to purchase coverage for 100 percent of the anticipated construction costs.
  • Professional liability and Malpractice insurance: Covers professionals against loss due to negligent professional duty, wrongful acts, and advice and services that lead to another person’s loss or injury. This is also known as Errors and Omissions insurance.
  • Product liability insurance: Insures against defective products and damage, illness, injury or death that may occur from using a defective product.
  • Commercial Property insurance: Insures against loss and damage to your commercial business property resulting from fires, storms and other causes.
  • Commercial vehicle insurance: Insures commercial vehicles and drivers for collision, liability, property damage, personal injury and “comprehensive” (now known as “other than collision”).
  • Workers compensation: Covers your employees if they become ill or injured while working on the job.
  • Loss of income: Covers your business expenses such as rent and employee wages if you can’t operate your business due to a loss.
  • Key person insurance: Covers loss of income that may result from the head of the business or other key personnel becoming incapacitated or passing away (also known as key man insurance).
  • Cyber-crime insurance: Provides protection for risks due to internet use and online communications.
  • Records retention policies: Insures against loss of important data and financial records.
  • Specialty coverage: Insurance that covers various specific business risks, such as those of landlords, farmers, and commercial operations that put on one-day events, such as seminars or concerts.
  • Directors’ and officers’ liability: If the directors or officers of a company are accused of wrongful or negligent acts, this coverage can protect the company’s financial assets from legal settlements and the cost of legal defense.
  • Inland marine coverage: Protects your business property while it’s being transported as well as a customer’s property while it’s in your possession.
  • Fidelity insurance: This is a type of insurance that protects an employer from dishonest employee acts.

Surety Business Bonds

Many people think of surety bonds as “surety insurance.” But they are not actually a form of insurance. Think of a surety bond as a line of credit. If you can’t complete a project, the project owner can then tap into that line of credit to finish the project as necessary. Surety business bonds are a three-party agreement. The three parties involved include:

  • The surety company supplying the bond
  • The obligee, who is the project owner
  • The principal, which is the contractor, organization or employer providing the work

The project owner may require a surety business bond from a surety company before the contractor can begin the job. Some projects will require a surety bond and others may not. Many federal projects or those that cost a certain amount will require a bond, which can be obtained in amounts high enough to cover the entire project.

Types of Surety Business Bonds

Although surety bonds are most common in the construction and contracting, there are numerous types of bonds that serve many different purposes.

  • License and permit bonds: The obligee, which is often a government agency, requires a bond from the principal. The bond states that all codes and regulations will be adhered to. For example, a plumber may be required to obtain a license before beginning work. To get a plumber license, you must first secure a license bond, agreeing to adhere to city plumbing code.
  • Public official bond: This bond states that elected or appointed public officials will perform the duties they are given. Typical bonded positions include notaries, judges, and treasurers.
  • Probate and other court bonds: If you’re given a certain responsibility as a fiduciary or trustee, a probate bond guarantees you perform honestly and faithfully. Other court bonds include:
    • Administrator
    • Executor
    • Conservator
    • Injunction
    • Release of lien
  • Contract performance bond: This bond guarantees that you will follow all terms and conditions set forth by the contract. Many require advance notice. Types of contract performance bonds include:
    • Bid bonds
    • Performance bonds
    • Payment bonds

Although you certainly do not need all of these coverage types to properly run your business, it’s nice to know that you have a variety of ways to manage the specific risks your company faces.

The coverage you choose for your business and employees should be designed to fully protect your company’s assets. By evaluating your business risks from multiple angles, you can more adequately protect your company from the risks that can hurt your company’s financial health.

Call Hughes Insurance Services of Alabama today for your free no obligation commercial insurance consultation and quote.

Hughes Insurance Services Of Alabama

Contact Us:

400 Century Park South
Suite 106
Birmingham, Alabama 35226
(205) 822-6778
(205) 417-1444

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