Every business is exposed to a wide variety of risks, hence the need for insurance coverage. While there are many risks out there, none is greater than the risk of lawsuits. A fire may damage the business premise, furniture and fittings, and other business assets, which are quantifiable, but the cost of these losses cannot be compared to the damages associated with personal injury lawsuits. According to Smart Business Insurance, every business should have liability insurance in addition to commercial property insurance and other types of these insurance policies. If you are a business owner, it is recommended you consult insurance experts to identify the risks your business faces. Consequently, you should purchase suitable insurance policies to ensure your business is sufficiently covered. Be sure to pay attention to the liabilities covered in addition to the extent of liability coverage to ensure you can make a decision that is well-informed.
Office Insurance Explained
When running your business, you will need an office where you can keep your business records and meet both clients and workers in private. A typical office has office furniture and fittings, computers, storage cabinets, important business documents, trophies and awards won over the years. Most offices also have photocopiers, printers, fax machines, water dispensers and other costly pieces of equipment. Office insurance basically protects the business owner against liabilities that may arise from unforeseen events, such as fire incidents, flooding, cyclones, hurricanes and other events that may cause damage to the office infrastructure, manufacturing plant and warehouses.
In case of unprecedented damage, the insurance company will pay for all the damage experienced as per the policy document. It is important to note that just like any other insurance policy, office insurance policies also have exclusion clauses. Therefore, it is important for business owners to understand what their policy covers and what it does not cover.
What Office Insurance Covers
i) Natural and Man-made Disasters
This type of insurance provides coverage for both natural disasters and man-made disasters. Examples of man-made disasters include accidental leakage, electrical and mechanical breakdowns. Natural disasters include cyclones, hurricanes, flooding, earthquakes and fires among others. Some insurers nowadays offer policies that also cover terrorist activities.
ii) Accidental Death and Injury
Most office insurance policies offer coverage for work-related injuries and fatalities. If employees get injured or get hurt accidentally while performing their duties, the policy will pay for all the resulting liabilities. This means that you will not pay medical bills and funeral costs for injured or dead employees out of pocket. With this type of coverage, employees can work comfortably in their place of work knowing very well that they are properly covered against work-related injuries and fatalities.
iii) Break Ins and Burglaries
Cases of theft as a result of break-ins and burglaries are also covered by office insurance policies. The equivalent value for the stolen items and cost of repairing the damage caused on the doors and windows will be compensated by the insurance company. This means that the business owner will not incur any losses as a result of break-ins and burglary incidences.
iv) Third Party Legal Liability Coverage
As noted earlier, the cost of fighting lawsuits can be financially-crippling for any business. First, there is the huge legal fees charged by defense lawyers. Secondly, the court may impose a huge fine and award a huge financial compensation to the plaintiff. Very few businesses are able to survive injury lawsuits without insurance. Fortunately, this type of insurance also covers third party legal liability.
Every insurance policy comes with exclusion clauses. Otherwise, the insurance industry would not be as profitable as it is today. Knowing exclusion clauses can help to prevent any misunderstandings and disappointments in the future. The following are exclusions you should know about:
i) Intentional Acts
If your business suffers damages or losses due to the intentional acts of employees, such as insider trading, employee theft or improper conversions, the insurer will not offer any benefits. Any other intentional acts, such as vandalism are also not covered. Injuries sustained by employees during fights are also not covered.
ii) War Like Situations
Losses arising from war-like situations, such as nuclear radiation are not covered by office insurance policies.
iii) Wear and Tear
The losses arising from depreciation, wear and tear of assets are also not covered. In fact, building and equipment wear and tear are predictable events, so they do not fall under the unprecedented events that are usually covered by insurance policies.
Knowing the exclusion clauses of a policy can tell you whether or not the policy is worth the premiums you are asked to pay. If a policy has unreasonable exclusion clauses, you should look for better options. After all, there is plenty of competition out there, so you just need to shop around to find the right insurance company and insurance product.
It is important to note that exclusion clauses usually differ from one insurance company to the next, so it is recommended you shop around before making a decision. Be sure to also check the inclusions to confirm that a policy covers all that it is intended to cover.