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Commercial small business insurance is a necessity if you want to protect your business from any form of financial loss. There are several types of small business insurance available and knowing them will help you determine what insurance coverage your business needs to enjoy the best protection against loss.

Types of Commercial Small Business Insurance

1. Business Owners Insurance Policy

This type of commercial business insurance is similar to the homeowners’ insurance policy. It is most beneficial to owners of small and medium-sized businesses. The policy covers all the basic protection small to medium-sized business owners need at a premium that is more affordable than getting individual insurance coverage.

The business owner will enjoy from the simplified process of getting all the basic insurance coverage they need with a single premium that typically costs less than getting all the same insurance protection separately. The policy includes the following protection: property and liability coverage, and other basic insurance such as business interruption, crime, and rented/borrowed vehicle protection.

2. Commercial Business Property Insurance

Commercial property insurance is a type of commercial business insurance that covers loss of property due to fire, smoke, water, or weather-related damages as well as from other natural disasters and theft. This is an insurance usually carried by most business regardless of nature and size.

Regardless whether you own the business property or just rent/lease the property, you have the option to get this type of insurance protection. Coverage as well as the terms and condition may vary from one insurance provider to another.

3. Business Interruption Insurance

This type of commercial business insurance protects you from loss of income. For instance, when damages or loss of property results to interruption of the business, the insurance takes financial responsibility from loss of income of the owners because of the interruption.

Never run your business without the necessary commercial business insurance protection. This is one of the most important business advice you will ever receive. It can be extremely difficult to take full responsibility and recover from losses when you do not have the protection your business needs. Regardless of how careful you are in running your business, there are just certain things that are beyond your control.

Several types of commercial business insurance policies are available. You have the option to get them individually based on your needs, or you may also choose to get an umbrella policy that combines all the basic protection you need in one simplified insurance policy. This type of policy normally cost less than all the other policies you can carry individually.

Here are the things that the umbrella commercial business insurance policy or usually referred to as the business owners’ policy (BOP) will protect you:

• The policy will provide insurance protection for the building your business owns against financial loss due to fire and other natural calamities, as well as man-made damages such as theft and vandalism;

• It will also provide protection for building contents, especially beneficial to business owners who are just renting or leasing the property. However, under an umbrella insurance coverage, the protection does not cover for vehicle insurance.

• An umbrella commercial business insurance policy covers basic liability insurance such as protection for customers or employees who get hurt while in the premises of the business, or while performing their duties and responsibilities. It may also cover for any claims relative to the use of products or availing the services offered by the business.

• Additional coverage for business liability is included depending on the insurance provider and the type of umbrella insurance policy. There are those that cover for malpractices or insurance for rented/borrowed vehicles.

One of the best ways to separate business and personal financial interests is to have your business become incorporated. This step will immediately reduce personal liabilities for any of the debts and responsibilities of the business from the owners or operators of the business. To become incorporated means to create a wall between these interests so that the business can operate free from personal interests and the person or individuals do not have to bear all of the responsibility for being in business.

To become incorporated also means that there is an agreement to operate the business under a series of specified conditions. They include separating the ambitions and interests of a number of groups who may stand to gain or lose from the operations of the business. Each group is provided rights and bears some of the responsibility for the ultimate success or failure of the corporation.

The owners of a corporation are the shareholders. They can purchase or be granted shares in the corporation and they hold the legal ownership of the corporation as specified in the articles of incorporation. The shareholders in a business that has become incorporated elect a Board of Directors to oversee the corporation and also elect the Officers of the corporation such as the President, Chief Operating Officer, Treasurer, and Secretary. The Officers are responsible for the day to day operations of the corporation and the Board of Directors oversees their work. The Board reports on business activities to the shareholders at a general meeting which must be held every year.

Only a few years ago my approach to business was very much along the lines of risk avoidance. I didn’t want to take risk, not at all.
In the last few years I have spent more time than ever with risk takers. Talking and meeting with these people has been, and continues to be, extremely stimulating. Through conversations I realised that, despite my previous perceptions, there was an ounce of entrepreneurship within me. In fact, not an ounce but a seed and like all seeds it needed nurturing to grow. I have been focussing on this ever since and channelling my energy and time toward this.
One key skill that I realised I have is that of risk management. Through avoiding risk for so long I have a great eye for identifying risks in the first place. What is different now is that I want to take risks.
Risk is stimulating and challenging. It breeds uncertainty which takes us back to challenges again. I see more and more that;
[a] taking risk is an absolute necessity in today’s world. There are far too many people out there competing with you. They are not just in your geographic location, they are global.
[b] taking risk can certainly reap rewards in much the same way that gambling can. Few people though want to gamble.
[c] the role of the Risk Manager will be key to all organisations from start-up to global. It’s not the traditional risk manager role though. This is about the literal translation – managing risk. To be explicit, it means that you need to take risks and mitigate them where possible and monitor them closely where not.For me there are few better environments to work in other than this. Let’s take risks, let’s move fast, let’s get up quickly when we fall and not slip on the same banana skin for a second time.We will all need to take risks in the future as we become more and more globalised. We’ll work with people we haven’t met before, in countries we’ve not been to. What I like immensely about this forthcoming change is how traditional project management and programme management – which I have been involved in for years – is going to change dramatically.
Management style will need to be far more innovative and creative as a direct result of your options for resourcing a project and delivering it become limitless. True project managers will need to have the fundamental skill of team building (search and selection if you prefer) and collaboration. Online communities will prevail, communities of practice, project level communities, client level communities etc etc. I’m looking forward to working with Entrepreneurs and managing teams in this new environment greatly, not all will feel the same way.