Understanding Insurance: Commercial Insurance 101

Want to save you time and money down the road, if you own your own business than it is important to match the insurance you carry to the company you keep.

Especially important is commercial auto insurance, you might want to talk to your independent insurance agent who specializes in that particular area if you're not sure what kind of commercial auto coverage you need. You need the protection that's right for your type of business and your independent agent can work with your to put together a package that will meet all your business needs.

You need to have coverage that is right for your industry and the size of your company when you have a business with commercial vehicles. Your business needs an independent agent who specializes in commercial auto coverage that can offer your business with the kind of advice you need to make the right choice.

Tips to help you find a commercial auto insurance agent:

A captive agent represents only one insurance company, an independent agent represents a number of insurance companies, so chose wisely and be sure and get objective advice. Independent agents can offer coverage options for various companies and will be more flexible, increasing your odds of getting a good combination of coverage, price and service that fits your business needs.

Websites such as driceinsurance.com can give you coverage option information and a way to find a good independent agent in you local area. So do some research on the websites of larger insurance companies gain some knowledge of the options you have available to you.

Referrals, seek referrals. Other business owners you may know, business and professional organizations, can give you some great referrals. Chances are other business in your line of business will be able to recommend an agent that they've worked with.

When it comes to business related insurance, one size does not fit all. That business you started in the garage or at the dining room table with just one vehicle has grown to the point where you have several vehicles and you have to move to a large commercial warehouse.

As your business keeps growing so will your insurance needs. Don't be caught being underinsured when something unforeseen happens. Just one incident could make you lose every thing you have worked so hard and for so many years to do. It is just not worth all the problems.

Understanding PI Insurance

One of the most popular choices for insurance is Professional Indemnity Insurance, otherwise known as PI Insurance, or PII. PI Insurance is a policy which covers a contractor in the event of a mistake or negligence on their part leading to financial losses for the end client. (Whilst this may sound like something a contractor won't need given their expertise in the area they're working in, accidents happen and it's not uncommon for most limited companies to prove they have a PI policy in place before taking up a contract with them.) Basically, a contractor's professional indemnity is covered by the policy for any mistakes that they make that result in a claim.

Aside from the cover it offers, PI is a great way to point out to HMRC that a contractor is a Limited company that takes financial risks, therefore a contractor and not an employee for your end client. This isn't the be all and end all of IR35, but it's an excellent starting point that serves to strengthen a contractor's position.

Successful contracting starts with status. For contractors, it should be made perfectly clear that as a self-employed professional, they're operating as part of their own business, and they are not actually an employee for the end client. This is related to all the advice that exists and circulates about being outside of IR35. One of the best ways to show that a contractor is in fact their own business is having an element of financial risk, and having an insurance policy is considered under this bracket.

The benefits of PI Insurance are vast, and the protection the policy provides is vital. When choosing the right PI Insurance however, contractors should take into consideration the following factors:

How long the policy lasts (The usual policy lasts for a year and is purchased annually) Liability Cost (When purchasing the policy, make sure you chose the correct liability cost depending on the risks that your occupation entails, and potential for error that exists) Getting the right policy (It may seem very simple, but many people still purchase either far too much or far too little Insurance than they should do)

Contracting is a line of work that experiences high risks, and often contractors can incur huge claims being made against them. As a professional working for a limited company, their mistakes are not covered by a corporate umbrella or large business, therefore insurance is needed in the cases where a contractor may make a mistake resulting in the financial loss of the client they may be working for. Basically, contractors need insurance to give them ample protection should the worst happen during a contract, and the finger then points at them. PI Insurance really is the essential insurance for contractors, being both a vital form of protection and a great tool in demonstrating status.