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Business Insurance, generally referred to as "Commercial Insurance" embraces many forms of insurance coverages; property-building and contents, property away from the principal location; income replacement-business interruption; machinery breakdown; and liability insurance. Then, within these groupings are numerous coverages.

Your Commercial Insurance should be designed to protect against the most prevalent risks to your business assets. Your broker can help you quantify those risks and determine the level of coverage you should consider. An important factor in this insurance is the Co-Insurance Clause which is in every commercial policy. This clause is a penalty for all partial losses included in all commercial property policies when an insured purchases less insurance than specified by the Insurer. The minimum limit(s) of insurance required are set by the Insurer and is usually 90% of the Actual Cash Value (ACV) of the property insured. When an Insured fails to meet the percentage requirement specified, an Insured will be paid less than the amount of the loss incurred.

Property Loss: Insurance against property damage or theft protects the physical assets that support your business, including building(s), equipment, vehicle fleets, and inventory. Intangible assets are also included, such as licenses, patents and accounts receivable.

Other obligations to be considered are your obligations as an owner, tenant, leaseholder, landlord or mortgage holder. Also included in the category you must consider local by-laws, which regulate the physical repair or reconstruction of the property.

A form of property insurance that is often overlooked and also not well understood is Machinery Breakdown Coverage ( also known as "Boiler" Insurance). This type of coverage in addition to the standard perils insured under ones basic property insurance. It covers damage, known as an accident, to a covered apparatus, such as heating and air-conditioning equipment, generators, compressors etc. There are two main categories in this class, 1. Boilers & pressure vessels and 2. Machinery Breakdown. There are several policy forms available, depending on the risk to be insured. Also included with this coverage is Business Interruption protection as an add on over and above the usual business interruption coverage.
Business Interruption: This coverage is designed to restore lost income after a loss to the level it would have been, had a loss not occurred. Business interruption pays for expenses that continue after a loss and lost profit. BI coverage can start immediately after the loss and continue for a specified period, usually 12 months. Payment will continue even if the insured's coverage expires during the period of interruption. There are three basis forms of this coverage; Profits Form, Gross Earnings form and Extra Expense form.

Liability Insurance: Every business operation is exposed to liability risks and should be protected against the minor as well as the major occurrences, including personal injury, property damage, product failures and negligence. In this present age in which we live and work, this coverage is required and in many cases it is demanded when a business is performing a service for another party. The usual minimum limit is $1,000,000.00, but for commercial liability, higher limits are required, based on the magnitude of the service being provided. The limits required can be reviewed and assessed by your broker.

Other forms of business insurance include Group Health and other benefits that can help improve employee retention and well-being, thereby reducing the cost of staff turnover and lost time.