Contracts are a part of life for businesses, regardless of their size or industry. They may range from the simple, short-term contract to the complex and long-term contracts. However, some contracts require a bit more coverage and protection because of the assets, risks, and contract requirements involved. For these reasons, some contracts may require companies to secure additional commercial insurance coverage. In today's blog post, we'll look at three types of common business contracts that may require the need for additional commercial insurance policies before the contract can be signed.
Throughout Houston, a significant number of businesses lease their office space, retail store, restaurant space, or commercial property rather than spend valuable resources purchasing land and constructing their own facilities. However, in order to lease a space for office or commercial space, many commercial property managers and lease managers require Commercial Property Insurance, General Liability Insurance, or Business Interruption coverage.
A second type of business contract that may require securing additional commercial insurance is a vendor agreement. Your company may be required to purchase General Liability insurance or Commercial Property insurance to cover any losses regarding rented equipment or property, damages to inventory, or delays and errors that cost businesses lost revenues or customers.
Finally, many business contracts require specific insurance coverage in order to complete the transaction. For example, a restaurant or catering company may be required to carry General Liability or Excess Liability insurance in case their food makes someone ill, or a commercial property owner might require landscape and tree care companies to have Workers Compensation, General Liability, and Commercial Auto insurance in the event of incident on their commercial site. Often contracts require both parties to carry some forms of commercial coverage in the event of a disaster or major disruption in service.
Regardless of the business size, industry, or number of employees, commercial insurance should be a priority for every business owner or manager. Having quality commercial insurance can be the difference between prompt resolutions to issues, or major liability issues that force the closure of a business. Aegis Insurance & Financial Services specializes in providing top-quality commercial insurance solutions to companies of all sizes throughout the greater Houston area. We offer commercial insurance packages tailored to your unique business needs and specific industry guidelines. Contact Aegis today at 713-850-7622 for more information on our full range of Commercial Insurance solutions, or go online to request a free quote.