Keeping abreast of insurance options

by brittney_cutler_2 | April 28, 2022 12:04 pm

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A business owner’s guide to choosing the right coverage

By Michael Di Nardo

Anyone who owns or is in the process of building a licensed commercial business of any size should understand the importance of obtaining commercial insurance. Commercial insurance protects and provides coverage for property, vehicle(s), all listed drivers, and any loss or damages. Without commercial insurance, a business owner will be required to pay out of pocket for costly damages and/or legal claims made against their company. Making the decision to obtain commercial insurance is already a step in the right direction. The next step is to shop around for the right broker.

Selecting a broker

Finding the right insurance broker is not always easy, as every business has its own unique needs. First, it is important to find someone with experience. The insurance market is complex and diverse, so each business wants someone who understands and specializes in a specific industry. This will ensure they are able to provide the right coverage.

For example, a pool contractor wants a broker who specializes in the pool and spa industry to ensure they receive the required coverages tailored towards their insurance needs. Having a specialized broker also ensures there is always an experienced professional advocating on one’s behalf, especially in the event of a claim.

A broker who can explain coverages in a simple and concise way also brings value, because now the business owner can understand what they are signing up for. Almost as important is finding a broker with access to many insurance markets, who has good relationships with their insurance partners. The more insurance partners they have access to, the more options they have to present when shopping around for a quote. Greater access will only benefit the business.

Recommended business insurance coverage

Next, it is valuable to familiarize oneself with the commercial insurance coverages businesses should have. Pool and spa contracting business owners should understand the most critical risks facing their industry, as well as the breadth of their insurance solutions.

Commercial general liability coverage

Commercial general liability coverage protects the insured if a third-party has been injured or succumbs to their injuries, or if their property is damaged. It will compensate for claims in the event of a lawsuit against the insured up to the limit of their coverage or settling a claim. Liability is the single most important coverage a business should have. It is a fixed cost (premium) for an unforeseen incident (claim).

Commercial auto coverage

Commercial auto coverage protects any vehicle used for business purposes while out on the job. If any insured vehicle is involved in a collision, or is stolen, vandalized, or damaged, funds are provided for its repair or a replacement. Lastly, a commercial auto insurance policy covers medical-related expenses and third-party property damage.

This is essential coverage for pool contractors, as many trucks travel to multiple job sites hauling large equipment. Big trucks and concrete mixers are high hazard. If one is involved in an accident, they are not readily available to buy or rent, and it is not cheap to do so. Pool maintenance technicians also have vehicles which have greater exposure on the roads, due to the many clients they visit each day. It is imperative to report all employees or drivers who have access to any business vehicles. Failure to report a driver can limit or even decline coverage.

Equipment breakdown coverage

Equipment breakdown coverage protects the failure or malfunction of business equipment or tools.

Business interruption coverage

Business interruption coverage protects a business owner when their operations have been unexpectedly disrupted by a flood, earthquake, fire, or windstorm. It will also provide defence when a commercial business needs to temporarily shut down operations. In addition, should the business need to operate in the middle of a rebuild after a disaster, this type of coverage will compensate for lost income and incurred costs.

Commercial property coverage

Commercial property coverage protects a business against any loss or damage, such as fire, theft, vandalism, and more. It provides insurance for the physical assets inside and outside of the business, including the building, inventory, electronics, equipment, and tools, as well as the exterior fixtures.

Cyber insurance

There is no foolproof defence from becoming the victim of a cybercrime, but should an incident occur, a broker can help mitigate. Based on the industry or the business, they can assess exposure and decide what type of coverage is needed.

Installation floater insurance

At any time on the jobsite, during transit or while being installed, the materials being used are at risk. Without this coverage, the contractor will be responsible for these charges should an accident occur, even though they do not own the materials.

Recommended personal insurance coverage

In addition to a commercial insurance policy, it is imperative to consider individual coverage. This will protect a business owner in the event they become sick or are injured while on the job.

Critical illness insurance

Critical illness insurance provides financial help to pay the costs associated with life-altering illnesses such as cancer, stroke, and heart disease. For example, if someone with coverage becomes sick with an illness and survives the waiting period, they will receive a lump sum of cash which can help them, their family, and/or their loved ones.

Life insurance

Life insurance provides protection for any financially dependent family members and/or loved ones. They will be given a non-taxable amount of money in the event of one’s death.

Disability insurance

Disability insurance replaces a portion of one’s income if they become disabled and are no longer able to work. This can result from a number of causes, including injury, serious illness, or mental health issues. Coverage depends on the duration of the disability, which is either short- or long-term; the insured’s own insurance policy or group insurance policy; government plans such as workers’ compensation; and benefits under the Canada Pension Plan.

Keyman insurance

Should a key person to a business become disabled or pass away, this coverage could help with the cost of resuming daily operations, clear an outstanding debt, or provide funds to recruit an appropriate replacement.

Conclusion

Finding the right broker means finding the right person to help protect one’s business. The right broker understands the industry and coverages required for business operations, providing the utmost protection and peace of mind. With the pool and spa industry being so complex and diverse, there becomes a necessity to help business owners navigate their insurance needs and make the right decisions. There are unquestionable benefits to working with an experienced professional, especially during a claim, when help is needed most. Through proper research of industry material, client reviews, and reliable referrals, the search for all insurance needs starts here.

Author

Michael Di Nardo has been a name in the insurance industry for over 30 years—15 of which he has dedicated to servicing the pool and spa industry. His experience, alongside working with contractors from all over the country, has put him at the forefront of insurance brokers. In founding Oracle RMS, his commitment to his work and clients, coupled with his specialty experience, ensures he provides the absolute best insurance programs catered to those in the industry. Within all lines of insurance, accompanied with a vast range of contract partners in the market, no matter what your needs are, Michael Di Nardo has you covered.

Source URL: https://www.poolspamarketing.com/trade/features/keeping-abreast-of-insurance-options/

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