King Henry VI (Photo credit: TranceMist)Starting a new business requires the decision maker of the fledgling company to decide on many matters. Many of these decisions concern important to trivial matters that can lasting effects. One of these important decisions is the choice to purchase commercial insurance.
Many states require a company to have insurance as a part of the license of just operating. There are requirements for insurance to cover an employee getting hurt on the job. Many governments want coverage on the commercial vehicles that a business operates on the roadways. When borrowing money to operate the business, lenders require an adequate commercial insurance protection before processing a commercial loan.
Commercial lenders are understandably concerned for the welfare of the company they are lending their money to. They are concerned about the firms ability to pay if some unforeseen circumstance happens or some liability problems occur.
Once the funding has been acquired the principles of the company should appreciate that things could go wrong and often do. Planning for that rainy day a good business owner takes steps to secure proper commercial insurance.
Other problems, concerning the health of the business, is coverage of possible robbery, vandalism, and liability. Having an adequate emergency fund for these types of problems makes sense. But having comprehensive commercial indemnity protection will help you cover all the problems that the business can't afford to cover.
If your company builds a product, then it is important to have liability coverage to address any claims concerning use or misuse of the product. There may be unknown defects that a good liability policy will address. This is very important because many lawsuits have put companies out of business, when just some commercial insurance could of offered protection.
Your business may someday suffer disaster, man-made or an act of God, a comprehensive commercial coverage policy is important for a quick recovery. A business wouldn't operate a vehicle without good liability protection, doesn't the same apply to your business location.