Your clients are always at risk, and these risks depend on their operation’s complexities. If they own a small business, a business owner’s policy insurance (BOP) might be enough to protect them from these risks. However, growth and added specialized procedures could make BOP inadequate. A better alternative is the CPP (Commercial Package insurance policy). What do your clients need to know about this insurance?
First, your clients need to know the different insurance policies they could include in CPP since they can customize it. Second, they need to know various factors that affect the premiums.
Coverage Your Client Can Include
The most common inclusions in commercial package insurance are coverages for property damage and general liability. Property insurance protects your clients’ properties such as buildings, inventory, equipment, machinery. Your clients will get reimbursable benefits on repairs and rebuild on or replacement of damaged properties.
General liability insurance, on the other hand, benefits your client against litigation. It takes effect when a person gets injured in your client’s properties or uses your client’s products and services. It covers the costs of legal fees and medical bills.
Aside from these two standard policies, here are other insurances that have specific coverage.
Business Interruption
Sometimes, your client will need to close operations to rebuild or repair damage caused by fire and wind. This closure means income losses. However, with business interruption insurance, your client is assured of an income equivalent to the one earned in the previous months.
Employment Practices Liability
Do your clients have employees? If they do, this policy is important because it covers costs related to labor or employee disputes on unfair practices. These practices include unjust termination, harassment, and discrimination.
Crime Insurance
Fraud, dishonesty, theft, robbery, and burglary are examples of crimes that your clients can encounter during their operation. These crimes can cause financial losses to them. If your client includes crime insurance, they’re protecting themselves from possible losses brought by these crimes.
Equipment Breakdown
Businesses that may need this type of insurance include manufacturing, rental businesses, IT, or any that uses specialized and expensive equipment. Any breakdown could lead to losses. So, if your clients have special equipment that may need high cost to replace it, they need this insurance in their CPP.
Vehicle Insurance
If your clients use automobiles for their operations, this insurance should be part of the package. It protects them from possible liabilities and losses due to accidents.
Inland Marine
This insurance protects your client from losses brought by unprecedented events during the transport of goods over land and water. It covers moveable assets in transit from store to warehouse or vice versa.
Umbrella Insurance
Standard policies such as general liability insurance can easily reach their limit when your client is faced with high-cost claims. Thus, an umbrella policy would be an excellent addition to CPP.
Factors that Affect CPP Costs
Choosing the types of coverage to include in Commercial Package Insurance NY could be hard sometimes. However, your client can use this list of factors to consider to decide which is essential.
Location
This factor plays an important role in choosing the coverage in a commercial package policy. Often, it affects the premium. If your clients operate in cities with fire protection, the premium usually costs less than those operations outside cities or areas with limited protection against fire.
Building Materials
Buildings constructed in fire-resistant materials are most likely to get discounts or lower premiums. Why? It means your clients’ building has lower risks compared to a building that is made with highly combustible materials.
Building Purpose
A building’s purpose is critical in its fire rating. If your client faces significant risks such as fire and flood, they have higher premiums. If they rent their building to others, tenants’ hazardous behaviors can also negatively impact your client’s fire rating.
Risks
Risky businesses often have higher premiums than other industries are. Thus, your client should make sure their establishments have the necessary precautions to lessen the negative effect of risk. These precautions include a fire alarm and sprinkler system for fire emergencies.
Conclusion
Commercial property insurance is an excellent protective product. It allows your client to choose the best coverage that suits their business.
About Snyder Specialty
Snyder Specialty, LLC is a New York-based underwriting facility that provides a range of property and liability solutions for personal and commercial lines. Specializing in coastal properties and hard-to-place risks, Snyder Specialty expands your current capabilities with proven solutions for complex risks. Find out more about the company’s range of services by calling (718) 362-8039.
