Pitfalls to avoid when arranging commercial insurance

Commercial insurance

Don’t just choose the cheapest commercial insurance quote

When arranging commercial insurance that will cover you for flood damage cleaning, you must get more than one quote. Don’t just choose the cheapest quote when you compare business insurance, choose the most comprehensive cover and check the upper limit of any claim. If water damage penetrates your property, damaging the walls, beams or roof, the cost of repairs to the fabric of the building and to replace fittings and fixtures may exceed your commercial insurance claim limit. In this case, your company will have to absorb any remaining loss but CPL t/a CPL t/a CPL t/a Rainbow International can help you document the water damage and make a commercial insurance claim.

Similarly if you have public liability insurance against a law suit which can include general liability, employer liability and business liability, do not under-insure your company. As an employer you need to be insured against bodily injury of staff, clients and customers and damage to their property as well as to yours. You may regret low-liability limits and public bodies may not allow you to hold public events if you do not have a set amount of public liability insurance cover as part of your commercial insurance package.
Flood damage cleaning

When arranging commercial insurance, make sure you have enough public liability cover

Flood damage cleaning can be an expensive business, that’s why you need CPL t/a CPL t/a CPL t/a Rainbow International to give you the very best advice and support. If you have a minor escape of water or a leaking pipe, it may be best to absorb this loss so that your business insurance premium does not increase. However, you must inform your commercial insurance company of minor water or fire damage to ensure your insurance remains valid. Absorbing a loss is called a flat deductible or a straight deductible which means it’s fixed. It’s the amount that you pay which is deducted before an insurance claim is settled like an excess.
You can also be charged a percentage deductible in cases of adverse weather, for example a flood, hurricane or wind storm that requires flood damage cleaning. Technically, the waiting period when you take out a commercial insurance policy is also a deductible.  It’s important when arranging insurance that you assess commercial risk in the same way as when you write your business plan and set your budget.

Change your commercial insurance policy if it’s not fit for purpose

building insuranceAs your business grows and evolves to reach out to new markets, you may need to re-evaluate and update your commercial insurance. For example, if you move to new premises or if they are being refurbished, the risk of water damage or fire damage may increase and you may need an industrial cleaning company like CPL t/a CPL t/a CPL t/a Rainbow International to undertake emergency flood damage cleaning.
Don’t be afraid to change insurance company as your commercial risk changes or if your insurer’s policy changes. Make sure you read your business insurance policy every time you renew it to check it’s still fit for purpose. You must also insure against potential income losses by arranging business income cover to offset loss of earnings. This may be called business interruption insurance and can include gross profit and additional increased cost of working as well as income. It will be based on your declaration which must therefore be accurate and up-to-date. If you have vehicles, you must check your vehicles are covered by your commercial insurance policy.