Know your risks for business insurance

Insurance covers your business against most everything you can think of, and some things you can't. "Risk" is a term used to describe incidents that may cause a loss. Here are some common risks as they relate to business insurance.

Water

Water damage is a common claim that can happen in the most unlikely of places. A tenant may leave a sink or tub overflowing in an apartment above your store, or a pipe might burst if the heat is left off over a winter weekend.

If your location has a basement that you store stock in, you may want to consider an additional Sewer Backup endorsement, which:

  • Includes coverage for sewer backup.
  • Covers the escape of water from a sewer system or sump, septic tank or drain (excludes seepage or leakage from natural sources).

Fire

A fire is often a total loss for a business. Without property insurance, it may take longer for your company to get back on its feet. If you are leasing, the landlord's insurance covers fire damage to their building, but not your property. To protect your business contents and stock, you need insurance.

Weather

Your insurance covers you against rain, wind and hail damage. While weather damage is difficult to prevent, maintaining your roof, windows and doors can help to alleviate potential problems. Additional coverage such as earthquake or flood endorsements may be necessary for further coverage.

Electrical

Prevention is essential to minimize losses from electrical failures. Have your electrical systems inspected regularly by a licensed electrician and keep your systems upgraded to reduce the possibility of an electrical fire.

If you view minimizing risk as a healthy business strategy, you'll make the right decisions to keep your employees safe and your company doors open.