Do You Need Commercial Insurance For Your Business?

If you own a business, you’re likely interested in cutting costs wherever you can. You might be wondering whether you need commercial insurance for your business in Virginia Beach, VA. The simple answer is, most likely you do need to ensure your business. Even in the instances when it’s not required, it’s a wise precaution. Here are a few circumstances that warrant the need for an Armor Insurance Group commercial policy.

If You Use Business Vehicles

Does your business require the use of cars or trucks?

If you regularly have to deliver products or services to your customers in-person, you need commercial vehicle insurance.

In fact, it’s required by law in the state of Virginia. If you have a business vehicle, it must be registered as such with the Department of Motor Vehicles. In order for this to happen, the vehicle must be commercially insured.

If You Do Business Outside Your Home

Is your business home-based, or do you rent a property?

If you own or rent a business property, you need commercial liability insurance.

It’s true that this type of insurance is not legally required unless you took a mortgage out on your rented property. Still, it’s a smart investment.

If you choose not to have property commercial insurance, you open yourself to the possibility of a serious loss. For instance, if your place of business is damaged by fire, you can’t recoup any of those investments if you have no commercial property coverage.

If You Have Employees

If you work alone, perhaps commercial insurance may not be as much of a priority, although it’s still an essential form of protection.

If you have employees, however, commercial insurance is a safeguard for you and them. In some states, commercial insurance is required if you have employees working at your place of business, or if you have customers visiting your premises. Virginia is not one of these states. However, if anyone sustains an injury on your business property, you can stand to lose your entire enterprise if you are sued.

Are You Ready To Invest In Protecting Your Business?

If you’re ready to protect your Virginia Beach, VA business, call and touch base with an Armor Insurance Group agent today. You can discuss your policy options and keep your business from being forced into bankruptcy after a single lawsuit.

Is there insurance to protect a business from lawsuits?

Most business owners are aware that the chances of facing a lawsuit are pretty high. A study by Fullbright reports that 90% of American businesses are involved in litigation every year. The average number of lawsuit managed by each company is 37. One useful tool to reduce the risk of serious financial damage is umbrella insurance.

Umbrella insurance does two things. First, it extends the policy limits of other insurance policies that are named in the umbrella policy. Secondly, it may cover some claims that are not covered at all by other policies.

If a claim is made that exceeds the policy limit of some insurance that is covered by an umbrella policy, first the total amount of the policy limit is paid by the underlying policy and then the umbrella insurance kicks in to cover any excessive amount up to the maximum limit of the umbrella insurance.

Umbrella insurance can be customized to cover specific types of legal problems. Some legal risks that may be covered are legal fees for false arrest, and claims of libel or slander. Other things that may be covered are discrimination and sexual harassment in the workplace.

Consult with your insurance agent at Armorcrest Insurance Services, serving the El Centro, CA area and the surrounding communities to discuss the types of coverage that may be available for your specific needs.

It is very common for umbrella insurance policy limits to be in the multiple millions of dollars. The minimum amount of coverage needed is at least a person’s net worth. If their net worth is $10 million, then the umbrella insurance should be at least that amount. The common sense reason for this is for asset protection in the case of a lawsuit.

It may be even better to go higher for the limit because after the full amount of insurance is exhausted, then a business owner may be liable for the difference needed to pay the settlement or judgment claim.

If you already have umbrella insurance or you need a new policy, talk with your agent at Armorcrest Insurance Services in El Centro, CA to make sure you have enough insurance to protect your assets and avoid a terrible financial disaster if some unforeseen thing occurs.