Do you Have to Have Commercial Insurance on a Business that you Owe Money On?

Owning a business is a huge investment for both time and money and can be very rewarding. That being said, you need to make sure you have the proper insurance to protect your investment and to protect your business from anything that may happen to it. Things like commercial policies are not required for any business owner but they are certainly beneficial for those that do have a business. For those that live in the Austin, TX area, the agents with Ty Lawrence Insurance Agency can help you find the policy that works best for you.

For the most part, a business does not have to be insured if you own it outright. That being said, if you owe money on your business, you are going to have to take the time to find out what type of insurance policy you have to have. For the most part, the bank or whatever lender you are going through is going to require that you have a policy in place to protect their investment. A bank that holds your loan on your building will require it be insured, if you took out a loan to buy equipment or inventory you are going to have to have insurance on the property.

You need to make sure you check with your lender to determine what sort of insurance policy you need to have in place to both be protected and to be covered by your lender should something happen. For those that live in the Austin, TX area, the agents with Ty Lawrence Insurance Agency can help you to find the perfect policy for your needs so that you can be covered both legally and safely should something happen.  

Does my business need protection and indemnity insurance?

If your Austin, TX business involves the use of watercraft such as sea-going vessels or ships, your business faces many unique liability risks every day. Protection and Indemnity insurance (also called P&I) is specific liability coverage that protects against liability arising from property damage or bodily injury that arises from the ownership or use of declared vessels. Protection and Indemnity insurance is a form of ocean marine insurance, but is separate and distinct from freight insurance, cargo insurance and hull and machinery insurance coverage.

Do I Need Protection and Indemnity Insurance?

If you or your company owns a ship or other type of sea-going vessel, and it is used for business pursuits, you need specific commercial liability insurance coverage for protection from third-party liability. Protection and Indemnity coverage is tailored to the needs of business owners of watercraft that transports cargo and goods for commercial purposes.

What Does Protection and Indemnity Cover?

As a ship owner, you are exposed to many daily liability risks – from liability from causing property damage to piers, docks and other fixed installations to liability for the injury or death of a passenger or crew member.  Ty Lawrence Insurance Agency P&I coverage provides you with broad liability coverage in the event that any bodily injury damage occurs related to your watercraft.

If you own sea-going vessels, here are a few examples of some of the liability risks your Austin, TX company can face which Protection and Indemnity insurance coverage will protect you against.

  • Bodily injury or death of longshore or harbor workers
  • Physical property damage to harbor, docks or piers
  • Damage to property owned by others
  • Property damage to transported cargo or goods,
  • Collision damage to third-party property
  • Bodily injury or death of a passenger or crew member

For more information about how Protection and Indemnity liability coverage can help protect your sea-going business assets, contact Ty Lawrence Insurance Agency today.