In as much as general commercial property insurance can come in handy at ensuring your establishment is covered, it is equivalent of having a smoke detector only and no extinguisher. It’s not enough. This is because in today’s volatile supply chain, unpredicted weathers, and increased cases of property losses, the traditional method of insurance is not a viable solution for industries when it comes to Fire Insurance Coverage and Marine inland Insurance.
Fire Insurance Coverage: Not Optional, but Often Incomplete
One of the main and frequent threats affecting business is fire, which is still one of the most dangerous occurring phenomena. Although many business owners find that their current policies already offer some protection against fire, they come with restrictions such as exclusion of specific causes (e.g., electrical breakout) or a maximum coverage for expensive items. True Fire Insurance Coverage is more than just an insurance policy package.
It covers your buildings, inventory, machinery not only for the case of fire but also that the occurrence will slow down or halt your operations, you have to relocate your business temporarily, or that you will lose in case you have to rebuild your property to meet the current building codes.
Here’s the catch: almost every business owner goes about their day thinking that accidental is the absolute worst that can happen, well, until they make a claim and realize that “covered” means something completely different. That is why it is always important to review your fire insurance periodically. This is not the time to blindly pick a policy – grill your insurers about replacement cost, code upgrades, and other incidental damages like smoke or water.
Inland Marine Insurance: The Misunderstood Power Tool
Peculiarly, while the name suggest that this insurance is linked with boats Inland Marine Insurance, you will find that this insurance has little to do with it. It is intended for coverage of properties that are movable, in-transit or used elsewhere other than the fixed location.
Considering construction machinery, equipment, electronics, or even fine arts; chemicals, special tools or even machinery machinery itself. Should your enterprise rely on transferring or storage of valuable assets, this is the coverage that fits the space between property insurance and auto insurance.
For instance, an independent contractor traveling from one construction site to another with sophisticated tools can never recover for losses through auto insurance or general liability. However, this is where Inland Marine comes into play – providing the protection of property that does not remain in one location.
This is especially true for the companies outsourcing their logistics, or companies leasing or renting some equipment. Whether you are involved in photography and equipment transportation, or landscape contracting and equipment and equipment moving and installation, to event production and equipment and staging, Inland Marine Insurance is often the only thing that fronts a lost shipment and a disaster.
The Bottom Line
Many entrants find the shocking reality that the insurance they have acquired for their businesses is not fit for the risks of the real world in the market. Fire Insurance Coverage and Inland Marine Insurance are not novelties; they form a mandatory part of taking on risk management as a serious business enterprise.
Do not wait for a crisis to show you what your insurance policy is lacking or does not cover at all. Find an experienced commercial insurance agent, review of policy and ask how they would perform if fire occurred or if $100,000 of property was lost during transportation. The answer to this question may spark your interest and correcting this aspect now might be hissing gold in the future.
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