Commercial Liability Insurance
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Commercial liability insurance is a key part of a company's overall financial plan and stands alongside any key man policy that might also be a part of company financial security program. While a corporate office may never face anything more than slip and fall incident within its four walls, the ensuing lawsuit could put a large dent in corporate earnings without the indemnity coverage. The physician faithfully practicing medicine each day cannot function as a business entity unless she has in place her own special commercial liability policy known as malpractice coverage. The auto dealer faces a number of different liability possibilities and must have what is known as a garage policy. And the tree surgeon had better have indemnity coverage every time he or one of his workers cranks up that chainsaw.
No one denies the fact that we live in a highly litigious society. The "I'll sue your socks off if you even blink" mentality oozes out of the pores of many Americans. This is especially true if they can smell the blood of businesses pocketbooks and their insurance companies. Companies have no choices but to have large blanket policies as well as highly specialized and localized ones for certain types of commercial enterprises. Of course the commercial liability insurance cost is directly proportional to the amount of risk the business poses to the public and to its own workers. It may seem like the natural and right thing to do, but Christians are commanded to treat others as we would want to be treated. "But love your enemies and do good, and lend hoping for nothing again; and your reward shall be great and ye shall be the children of the Highest: for His is kind to the unthankful and to the evil...be ye therefore merciful, as your Father also is merciful." (Luke 6:35, 36)
Commercial liability insurance comes in a number of specialized forms for various businesses. This is protection covering claims of bodily injury or property damage. That corporate office can be covered for that slip and fall incident, or perhaps if the elevator malfunctions or if a chair is thrown out a window and lands on a customer's car. This kind of generalized insurance may not cover some very specific incidents, like damage done by a wild elephant stampede, but it will cover not only injury claims, but also a claim of slander or libel. That corporate officer should have never opened his mouth at that luncheon about something he heard privately regarding a fellow officer. That commercial liability policy will probably also cover that advertising injury claim. This might be made when company advertising makes false claims or when a copyright is infringed upon.
There should be some difference made between being bonded and being insured. While they are often interconnected, they do have two distinct roles to play in business. Commercial liability insurance is for incidents that occur with damage while bonding is insuring that a job is completed. The tree surgeon would most likely be bonded so that customers know that the job will be finished, even if it's by another company. Some financial experts even suggest looking at whether coverage can be lowered if a company is already bonded. But no decisions ought to be made until speaking to one's own indemnity agent. So general coverage may be fine for office type settings but there are specific coverages some businesses must have.
An auto dealership will need to have garage liability coverage. This very specific coverage will cover slip and fall for customers, employment discrimination or faulty parts and service claims. It will cover the vehicles owned by the dealership but not customer cars in the garage for repair. Then the specialized commercial liability insurance must be garage keepers' liability coverage and that is usually part of the garage policy, but cannot be assumed. Various professions must also have more than a generalized commercial liability insurance policy. Doctors, lawyers, accountants, architects are all subject to hostile civil and perhaps criminal lawsuits from clients. Without specific indemnity coverage that has been specifically fashioned for that professional, he may not have enough coverage or any at all.
Other professions that make out deal making reports, assessments and prepare documents often seek out commercial liability insurance typically called E and O coverage. Errors and omissions policies can cover those incidents in which key issues are included when they should not have been, omitted, written incorrectly or other similar failures. Home inspectors that miss a structural problem that could cause a homeowner thousands of dollars would be covered under E and O policies. Of course since the cost to commercial liability insurance companies for these kinds of settlements can be quite high. Often a single claim can either make the insurance unaffordable, or cause it to be cancelled.
In tougher economic times, liability insurance is more difficult and expensive to obtain. During these times, Indemnity companies do not have highly profitable resources in which to put customer's premium money, causing a much more painful experience when large claims are made on the company's assets. Company's become more selective about who they cover and are not shy about ending a relationship once a claim has been made. When seeking the kind of insurance you need for your business, shopping around is a good move. And make sure each policy is the same in terms of coverage so you are getting a true comparison.
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