4 Common Business Insurance ClaimsPosted on Sep 29, 2016
As a business owner in today’s fast-paced climate you have a lot on your plate. It’s not all about operating your business, though. You must take steps to protect your business as well. With that in mind, getting insurance is a great way to help your business survive the ups and downs that happen along the way. These are four common business insurance claims you’ll want to be sure your business is properly protected against.
1) Product Liability
When products fail, malfunction, and spectacularly melt down, your business could be held financially responsible for far more than simply replacing the product. You may be found monetarily responsible for damage, harm, or injuries that happen as a result. Product liability insurance helps you manage your legal expenses related to liability determination as well as payouts or awards that are ordered against you. In the case of a settlement, your product liability coverage will help to cover these costs as well. Of course, all product liability coverage is limited to the amounts specified in the policy.
Chances are that you take every possible precaution to reduce your risks of products failing and causing injury. When products do fail, especially if injuries or property damage is involved, it is in your best interests to have adequate coverage for product liability.
2) Customer Slips and Falls
It happens all the time. Whether people are tracking in melting snow or rain from the outside, obstacles are left on the floor, or signs are not properly posted to warn customers of the risks of slips and falls after mopping floors; when customers slip on your business property, the odds are good that you will be found legally responsible for monetary damages. Most businesses find it less costly to settle than to go through a long-legal battle.
It is never intentional, but it can be financially devastating for your business if a customer slips and falls and you’re found responsible. This is especially true of injuries are involved as a result of the incident. It’s important to have policies in place encouraging employees to be diligent in attempts to avoid these types of accidents, but accidents do happen. That is why you want to make sure your insurance policy covers these types of accidents when they occur on your business property.
3) Reputation Management
While one of the common business insurance claims, reputation management also happens to be the costliest, according to Insurance Journal, with each occurrence average $50,000. Businesses that need this type of coverage are often facing huge public relations problems. It can take on many forms. It may involve company leaders causing a public image problem by words or actions, or it could be the result of a high-profile data breach that had eroded public trust.
The nature of this particular problem is one that isn’t easily anticipated or guarded against. That is why, when the time comes, it is critical to have the right kind of coverage to help you protect the good name of your business and build a better overall public image.
4) Wind and Hail Damage
Wind and hail can cause a world of damage to business property. It can damage the physical structure of your business, including the roof, siding on the outside of the building, and even breaking windows. It can also do its fair share of damage to awnings and business signage. Hail can damage the exterior and windows of business vehicles too.
While it doesn’t sound like it would do all that much damage, at first glance, the truth is that wind and hail incidents average around $26,000 per incident so it is no laughing matter. This is why it’s important to make sure that you are protected from wind and hail damage as “covered” damages on your insurance policies.
If you have questions about your business insurance, there is one name you need to know: Otterstedt Insurance Agency. We’ve been in the business of protecting homes and businesses for nearly 100 years and we have the policies and products to help you protect your business.