5 Things to Remember When Purchasing Commercial Insurance

​You need commercial insurance for your commercial property in case a catastrophic event occurs on your property. Commercial property insurance is very important in case there's a great fire that consumed the buildings on your property or partly destroyed your hotel or restaurant facilities. When you have a commercial property, and you're buying commercial property insurance for the first time, remember these things.

Always Compare Quotes
Never go with the first quote you see only because it looks inviting or affordable. While you can get possibly sidetracked by the first commercial property insurance offered to you, there's plenty of room for better choices. Low-priced quotes may not provide you adequate coverage, or some insurance firms may be more reputable. Do your research, then aim for a list of more adequate options.

Know the Technical Terms
Master the definitions of a few key terms when it comes to insurance terminology. Ask the insurance agent to brief you on how you can use the coverage in case a real accident happens. Know the difference between excess, deductibles, premiums, and many other terms. Brushing up on insurance lingo will make your claims easier if you have to make some in the future.

Beware of Unexpected Costs
Some insurers will not tell you all the costs up front. In fact, you might actually have a high-deductible insurance plan without knowing it! It means that before they issue a payout, you'll need to spend something like $200,000 first directly from your pocket. If you can't afford to spend that amount of money from your pocket, then you can't legally make a claim. Make sure you can afford your deductibles or at least you can ask your insurer about it.

Understand Tax Implications
Insurance is basically tax deductible, and you can save a large amount of money on your taxes with it. When you're making plans for your hotel or restaurant's financial models, make sure you consider the insurance costs as a write-off. However, you should weigh the benefits of getting significant coverage, especially if your only purpose is to pay less tax.

Consider Purchasing an Insurance Bundle
Commercial insurance for your hotel or restaurant business may exist in a bundle of business insurance protections such as flood insurance, fire insurance, tornado insurance, and many others. Although you can purchase these individually, you can save on the premium if you are buying an insurance bundle. Thus, if you think your business will need such protections, then it would be wise to go for a bundle. However, make sure to think it over first, or you'll end up paying more for the protection you might not need.

Some Final Words
Protecting your hotel or restaurant business from natural or man-made disasters is a wise move. However, you need to determine the right insurance policy that will provide you with adequate coverage. You should also make sure that you're paying less for more benefits as much as possible. The most important thing is that you don’t wait until your business goes up in smoke before you insure it.

At Desmond Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (859) 491-5100. Get your free quote today by CLICKING HERE.