We often think of commercial insurance claims that come from catastrophic, unusual events, but small business insurance claims are a common part of doing business. But which statements are the most common? And what insurance cover can protect your small business?
The five most common business insurance claims are:
1. Burglary and theft. Burglary and theft claims include internal theft from employees and burglary. In fact, 42% of inventory loss in US stores is caused by employee theft.
What you can do: You can take these steps to prevent employee theft. To prevent burglary, you invest in a quality assurance system and consider installing fencing around your building. Also, make sure that your business is well-lit to deter potential thieves.
What coverage do you need: To get started, pick up commercial real estate coverage. Then add a criminal insurance and employee dishonesty / theft insurance policy to your policy to ensure you have all the protection you need.
2. Water-related damage. Damage from water to companies can come from snow, floods, freezing temperatures and burst pipes.
What you can do: Prevent ice dams and roof damage by keeping the building's roof free from snow and ice. Make sure someone on the staff knows how to turn off the water in the event of a pipe system and keep the temperature in the building no lower than 55 degrees Fahrenheit in cold weather.
What coverage do you need: Commercial property insurance usually covers water damage from snow, freezing temperatures and cracked pipes, but not from floods. Business income insurance can compensate you for the loss of revenue if your business has to close while water damage is repaired. To learn more about flood insurance, including who needs it, what is covered and how to purchase it, the Federal Emergency Management Agency can help.
3. Wind and hail damage. When strong winds and hail damage commercial property, it can be detrimental to not only the business but also the property owner.
What you can do: Keep trees near your property well maintained; cut off overhanging branches and remove dead or dying trees immediately. Anchor outdoor equipment that can be blown into your building by strong winds and protect windows if a severe storm is forecast.
What coverage do you need: As with water damage damage, commercial property insurance will cover losses due to wind and hail damage, and business income insurance can compensate you for lost business while repairs are being made.
4. Fire damage. According to the Insurance Information Institute, a structural fire occurs every 64 seconds. In 201
What you can do: Create a fire protection list for your business. Inspect and maintain fire extinguishers in your company and train all employees in their use. Install a fire extinguisher or fire extinguishing system (some areas require these in commercial buildings) and regularly clean and inspect any electrical equipment that may cause a fire. Make an emergency exit plan and practice it with your employees.
What coverage do you need: Commercial property insurance covers repairs for fire damage, and business income insurance can compensate for lost revenue after the fire.
5. The customer slips and falls. Slips and falls are a common cause of damage caused by customers in small businesses.
What you can do: Prevent falls in your business by clearing spills directly to avoid slippery floors. Fix or remove trigger risks such as carpets with loose area, floor mats or uneven floors. Also keep your space free from other pipes that can damage customers such as items stored on the floor, loose electrical cables, etc. If fraudulent claims on your property are a problem, consider installing cameras to reduce / prevent claims.
What coverage do you need: General liability coverage covers most losses due to a customer slip-and-fall accident. And while these examples are a good place to start, an independent agent is your best resource to help you decide if you would be best protected with a business policy, a commercial package policy, or another option. Our local, independent agents will look at your company's unique needs and tailor a policy just for you. And when you make a claim with Frankenmuth Insurance, you can be sure that each claim is examined and evaluated based on the specific coverage, facts and circumstances.
Do you want to give your company a head start in preventing losses? Start identifying risks today with our free emergency preparedness guide.