Commercial Property Insurance

Choosing the best commercial property can have huge benefits for small to medium-sized businesses. Property forms one of the largest overheads in business accounts, therefore getting the right property deal for your business needs is crucial.

Take a moment to think about exactly the specifications of the building you require. Does your business really require, at this stage, that you purchase a large prestigious office – could you make do with a smaller leasehold property to grow into, or even one of the managed business centres or serviced offices that are springing up in many towns and cities. You must then ensure that your business will really be able to afford your chosen premises. The first step you need to take is to decide exactly how much you really have to pay – don’t forget to include all costs – including utilities, business rates, any service charge, insurance, maintenance and of course IT. Make sure that your chosen premises are in the right location – many businesses have failed simply by not being in the right place. Is it essential for you to be based in the city centre? Don’t forget how important road and rail links can be. Take care to allow for the expansion of your business – there’s no point taking out a ten-year lease without a break clause if you plan on doubling the size of your business in say two years.

Although very few business owners try to deal with the purchase of business premises without a solicitor, it’s amazing how many small and medium-sized businesses try to do exactly that when renting premises. It is always advisable to seek experienced legal advice when purchasing a commercial lease, although the risks are not as high as purchasing a freehold property commercial lease’s can be extremely complex. Renting commercial space can tie any business to potentially expensive and burdensome lease terms. In particular you should seek advice on issues of rent review, responsibilities for business rates and insurance, maintenance of the property, notice period, how and when rent is actually paid, and in particular any requirements to bring the building back to its original condition at the end of the lease.
 In any event it always worth considering more flexible short-term licence agreements if your business requirements are likely to change – as these are generally involve less long-term commitment and easier to exit.

Don’t forget when considering taking on business property, that in addition to commercial property agents and adverts in local papers, there are other ways to find your ideal premises. In particular don’t forget your network of staff, friends, family and business contacts – it’s amazing how often your own network may be aware of leasehold or freehold commercial property before it becomes available on the open market.

In summary, make sure that you do your homework before looking to enter a lease or buy commercial property and get the advice of a specialised commercial property solicitor.

Business owners understand the importance of making sure that their business is properly protected from all risks that can affect them. Owning a vehicle can put the business in jeopardy of a lawsuit in the event of an accident caused by that vehicle. The following are key points that business owners need to remember as they shop for vehicle insurance.

Commercial Vs Personal: Make sure to get business auto insurance; anytime the vehicle is titled in the name of the business, even if the vehicle is a small or medium size car that business owner uses personally. In case of an accident the titleholder of the vehicle (in this case it is the business) may be sued as a result, bringing the entire business in a legal preceding. If the insurance policy is not under the name of the (business), then the business may encounter some problems pertaining to the validity of the coverage.

Coverage Limits: Insurance companies offer different limits of coverage, from the basic limits mandated by law (in Illinois it is 20,000/40,000/15,000) to as high as one million dollar for each accident. A business that insures its business auto at the basic limits of (,000 bodily injury per person, ,000 bodily injury per accident, and ,000 property damage per accident) is surely running in a huge risk of losing its business assets in case of at fault accident involving their business vehicles with death or serious injury to others. High liability limits are needed to avoid losing business assets in case of auto accidents.

Correct Classification of Vehicle: Incorrect classification of the business auto may lead to voiding insurance coverage, hence rendering policy useless and putting business in bigger risk of losing business assets in the event of at fault auto accident. A truck that is used by a painter has different classification than a similar truck used as a dump truck. The two trucks have different classifications and their premiums are not similar.

All vehicles that are titled in the name of a business, or ones that are used to run a business are required to have commercial auto insurance policy;. The following are examples of autos that need commercial insurance coverage:

Artisan and contractors , Courier and delivery services, Ice cream vendors, Farming and livestock, Landscaping, Limo and Taxi Cabs, Para-Transit transporters, Messenger service, Religious and non-profit, Restaurant and food services, Snow plowing, Pickup truck insurance, Van insurance, Truck insurance, Tow truck insurance, Dump truck insurance;, Landscaping insurance.

Business Auto Mandatory Coverage Includes:

(1) Primary Liability. In Illinois a minimum of ,000.00 bodily injury per person, ,000.00 bodily injury per accident, and ,000.00 property damage per accident is required from all registered vehicles, personal or commercial. Some business auto that require federal filing or state filing may need higher limits. For example, a local taxi cab operating in Chicago need to have a minimum of 0,000 in auto liability. A truck that transports hazardous materials is required to have at least one million dollars in liability coverage.

(2) (UM) Uninsured Motorist. In Illinois a minimum of ,000 bodily injury per person, ,000 bodily injury per accident is required for UM / Uninsured Motorist coverage. These are the limits that your insurance company will pay people in your commercial auto in the event of them being injured by some uninsured motorist. Remember that this coverage may not apply if the accident is work related and the business workers compensation policy comes in the scenario.

(3) There may be other mandatory coverages which are based on the nature of the business. For example, certain trucking businesses that require to meet FHA Insurance Requirements, filing may be required to have Cargo Coverage is required by law.

Other Optional Coverages for Commercial Auto Includes:

(1)Collision- Physical Damage Coverage- when the auto is physically damaged in an accident involving another vehicle or a stationary object, such as a wall, telephone pole, or guardrail. Also, comprehensive coverage will pay for physical damage to the insured vehicles caused by a variety of risks, including fire, lightning, theft, vandalism, hail and flood.

(2) Underinsured Motorist. In Illinois a minimum of ,000 bodily injury per person, ,000 bodily injury per accident is required for Underinsured Motorist coverage. These are the amounts that your company will pay people in your commercial auto in the event of them being injured by an insured motorist. Remember that this coverage may not kick if the accident was work related and the business workers compensation policy comes in the picture.

(3) Medical Payments: The coverage will pay medical care expenses for the insured(if you are not covered by workers’ compensation) as well as passengers in your auto.

(4) Hired and Non-owned Auto: Pay for damages the business is legally required to pay due to bodily injury or property damage that occurs during the use, loading or unloading of hired or non-owned vehicles used for your business.