Are you a business owner looking to protect your organization’s capital from unforeseen circumstances? Indeed, you should have a safety net that helps your enterprise survive threats, accidents, and losses.
Imagine there was a natural disaster that destroyed your office building. However, you did not insure that commercial property, and now you cannot claim any capital.
The situation will not only affect you financially but also impact your business growth. A study claims that 75% of businesses in America do not have any insurance. When an unfavorable situation arises, these businesses incur various costs, and they end up failing.
Do you want to avoid this? In that case, you will need a solid policy like commercial property and casualty insurance (P&C). Read on to know more.
What Is the Best Commercial Insurance Policy?
You will find various types of commercial insurance in the market. Examples include general liability, workers’ compensation, business interruption, etc.
However, commercial property and casualty insurance is the most important for businesses. While property insurance covers the physical capital, the latter is a group of liability policies, including cyber, auto, and more.
Commercial property and casualty insurance is beneficial because it solves complex and diverse business risks. It protects your company assets, employees, and physical property.
According to Securance, such insurance policies combine various essential factors and customize the programs per your needs. However, the benefits will depend on the insurers and your property values. For example, some companies provide policies covering an organization’s personal property, including furniture, IT equipment, and fixtures.
Entrepreneurs trust insurers like Securance because they manually review property values, customize, and rebuild commercial P&C insurance.
Michelle Pounders partnered with Securance many years ago. According to her, the corporation is flexible but also patient and compliant. She trusts their commercial P&C as it fits her company’s demographic well.
Why Should You Get a Commercial P&C Policy?
A report suggests that business owners have become more stressed due to the rate increases in commercial P&C insurance policies. Moreover, there are various challenges, like capacity restrictions and renewal processes.
Due to the rate increase between 5% to 150% depending on the area, companies have started to lose faith. Even then, you never know the risks your company might face. Robberies, natural disasters, financial turmoil, and even lawsuits can occur. Ironically, the costs of getting insurance will be lower than the cost of recovering from such situations.
If you have a commercial property and casual insurance policy, the insurers will bear the damage costs and help you rebuild. Also, liability insurance safeguards your company, customers, and reputation.
How Do You Determine the Type of Coverage You Should Invest In?
The type of Commercial P&C insurance you need depends on several factors like location, organization type, business size, etc.
The first thing you should analyze is the market and industry, which will have specific risks or liabilities. The size of your business and the number of employees will also affect the decision.
Besides, your business’s location and state are crucial factors. Suppose your commercial property is in a high-risk area. In that case, your insurance requirements will be different from a company located in a safe location, not prone to disasters.
The Importance of Getting a Commercial Property and Casual Insurance Policy
A commercial property and casual insurance policy helps protect your business from liability and massive financial loss. As mentioned, this property coverage caters to liability and physical damage claims.
Ideally, you can get both types of insurance as a package deal because it helps businesses achieve more benefits under one policy. However, you should consult an agent or insurer before investing.
Here are the coverages you get from investing in these policies together:
Commercial Property Insurance
It covers the physical building and company belongings that might get damaged due to fires, theft, vandalism, natural disasters, or faulty structures. This insurance will allow you to repair or replace various assets and equipment at cash value.
It can be furniture or anything from your company’s inventory. This insurance also covers high-value items and expensive machinery on your property.
Commercial Casualty Insurance
This type of insurance protects business owners from liability claim costs. This professional liability insurance comes in handy when your company is found responsible for any physical injury or damage.
It covers any legal costs that your company might suffer. This policy has various coverages to protect your company from liability claims.
Some policies also include errors and omissions, cyber liability, employment practices, commercial umbrella, auto, etc.
The Bottom Line
Did you know that the commercial property and casualty insurance market is set to grow at a CAGR of 6.7% by the end of 2023? That means a market value of USD 2.65 million.
This number proves the importance of a commercial P&C insurance policy. Indeed, this type of insurance is crucial because it ensures your organization’s success. Not only does it mitigate physical damage, but it also protects the brand’s reputation in case of lawsuits.