It took years of hard work and perseverance to grow your small business. Now, you’re focused on protecting your investment for years to come, and the best way to do so is with insurance. However, you have to be careful about the policies you choose—some don’t cover the most common commercial claims.
Are you unsure if your current policies will cover you during a claim event? Read our guide to learn about the most common commercial claims and the coverage you need to protect your business.
What Are the Most Common Business Insurance Claims?
If you keep renewing your insurance policies year after year without filing any commercial claims, it can feel like you’re making an investment with no return. But did you know that as of 2015, 40% of small businesses were expected to file a claim in the next decade? There’s a good chance your insurance will pay off at some point due to one of these common commercial claims.
Commercial Property Damage Claims
If you suffer an insurable loss, there’s a good chance it will fall under your property insurance. Here are the three most common property insurance claims filed by small businesses.
Burglary and Theft
No matter how safe and secure you think your business is, you can still suffer from a theft event. While you may associate theft events with random criminals, an angry employee or dissatisfied customer can also cause serious financial damage.
Water and Storm Damage
All it takes is one nasty storm to wreak major havoc on your commercial building. Whether you suffer from a flooded office or a hail-damaged roof, the financial repercussions can be devastating.
Fire
All it takes is one nasty storm to wreak major havoc on your commercial building. Whether you suffer from a flooded office or a hail-damaged roof, the financial repercussions can be devastating.
Commercial Liability Claims
Property loss events aren’t the only reason small businesses file commercial claims. These liability events can also lead to small business claims.
Slip and Fall Injuries
If customers slip and fall on your property, they can sue you for their medical bills and rehabilitation costs. Those lawsuits can cost you thousands in lost productivity in lawyer fees, in addition to your settlement amount.
Other Injuries and Property Damage
Slip and fall injuries aren’t the only cause of customer lawsuits. Other customer injuries can include burns or allergic reactions caused by your products or cuts and broken bones that occur on your premises. Additionally, if your products or services cause damage to a customer’s property, they can sue you for repairs.
Protect Your Business With These Coverages
Your average commercial property and general liability policies typically pay for most common commercial claims, but you might need a few additional coverages to fully protect your business.
Theft Insurance
Some commercial property insurance policies cover outside theft, but others only protect against vandalism. You might need to endorse your policy with theft coverage or increase your limits to protect your business. Additionally, even if your policy covers some theft scenarios, it might not cover employee theft.
If you want to protect against inside theft, you can add employee dishonesty coverage to your current business owner’s policy or purchase a separate crime policy.
Wind and Hail Insurance
If you live in an area with frequent windstorms and hail, you might not have enough wind and hail insurance to cover your business. Consult your insurance company if you’re unsure about your current coverage and exclusions.
Flood Insurance
Most standard property policies don’t include flood coverage. If you’re at risk of flooding due to a tropical storm, you should purchase a separate flood policy.
Southpoint Keeps You Prepared
As a small business owner, there’s only so much you can do to protect your business. Sometimes, loss events happen when you least expect them to. Luckily, with the right commercial insurance, you can ensure that a claim doesn’t cause lasting damage to your finances.
Are you confident that your current insurance agent has you covered? If not, turn to Southpoint. Our commercial insurance experts can assess your business risks, choose the perfect combination of policies to protect you, and help you implement loss control practices to prevent commercial claims.
Get in touch to learn more about Southpoint and discover how our policies protect you against common commercial claims.