Commercial finance companies provide a wide range of specialized commercial insurance products. Most finance companies offer a full range of general risk and capital structure products that include loss of business assets, payment defaults, business interruption coverage, and professional indemnity insurance. General risk and capital structure products are important to protect the assets and savings of a business. Professional indemnity insurance protects the employees of a business from claims made against the business. A good finance company service can help you determine what product best suits your company's needs.
Business interruption coverage is one of the most popular products available through finance companies. This product protects against unanticipated monetary losses due to business interruptions, such as equipment or inventory damage, that occur for a specified period of time. Professional indemnity insurance is another product that most finance companies offer. Professional indemnity insurance is designed to protect the reputation of an organization from claims made against it by independent contractors, and it also covers legal liability that may be incurred by the company. Many finance companies also offer other types of financial services to help maintain the long-term viability of a business.
In addition to providing general risk and capital structure products, finance companies need to be skilled at handling workers compensation insurance and workers' compensation claims. Workers' compensation insurance is designed to protect the interests of employees who are injured while working on the premises of a business. Most finance companies need to be licensed in order to provide workers' compensation insurance. Finance companies may choose to obtain workers compensation insurance independently, or they may choose to participate in a workers' compensation program through a third-party insurance provider. The benefits of a workers' compensation program depend on the nature of the business, the location of its operations, and the type of jobs performed at the business.
Specific characteristics of businesses that require workers' compensation coverage include brick and mortar businesses that employ a substantial number of workers, medium size businesses with at least two stores, or small specialty shops such as hair salons or chiropractors. Also important to these finance companies is that they must have a prescribed list of standard works employees perform each day. The company must carefully review these works every thirty days to determine whether any injuries were sustained while performing those duties. In the event of an injury, finance companies need to document the employee's medical history to provide enough evidence to satisfy a judge that the employee was not engaging in an unsafe work environment.
Car finance companies deal with financing and making loans for purchasing new and used vehicles. Many car finance companies offer collision damage waiver insurance and comprehensive coverage on used cars. Finance companies must meet a certain minimum level of credit quality and revenue to participate in the programs offered by the National Automobile Dealers Association (NADA). NADA offers discount car insurance to finance companies, which helps them reduce costs associated with providing loans and buying used cars.
A key service provided finance companies need to protect their interests and their assets is liability insurance. This type of insurance protects the assets of the business from lawsuits, personal injury claims, and property damage, that occur from libel or slander, advertising injures, or product defects. It also pays for attorney fees that occur from lawsuits filed by customers who are injured while using the company's products or because of the product's defect. There are many types of liability policies, such as business interruption, general liability, product liability, and property damage. Business interruption insurance can pay for interruption of business from events that happen beyond the expected scheduled time of operation.
Another service provided to finance companies is legal costs. Litigation may be necessary if an injured customer sues the business. In most instances, legal costs are a percentage of the final settlement. Finance companies are responsible for hiring a legal expert to litigate cases. Legal costs can include expert fees, filing fees, and court costs.
Most finance companies also offer insurance coverage for liabilities on their borrowers. Insurance coverage can help finance companies manage their exposure to loss with other financial institutions. This type of insurance coverage can help the company manage risks on its loan and credit portfolios. These policies usually cover bank overdrafts, failed checks, and other non-cash-related claims.We also provide web design services
