Getting Liability Coverage Right
The biggest mistake Caribbean business owners make is underestimating their liability exposure. Consider these scenarios:
- A customer slips on a wet floor in your shop and breaks their hip. Medical costs: $50,000+. Lost earnings claim: $100,000+.
- A product you sell causes an allergic reaction. Multiple customers are affected. Legal costs alone: $30,000+.
- Your accounting advice turns out to be incorrect, costing your client $200,000 in tax penalties.
Your liability cover limit should be high enough to handle a worst-case scenario. Most Caribbean businesses should carry at least $1 million in public liability coverage.
Commercial Property Insurance
Like home insurance, commercial property insurance covers the building (if you own it) and the contents (equipment, stock, furniture, fixtures).
Key considerations for Caribbean businesses:
- Hurricane and windstorm cover — Often a separate endorsement, not included in the standard policy
- Business stock valuation — Stock levels fluctuate. Ensure your sum insured reflects peak stock periods
- Equipment replacement cost — Insure for new replacement cost, not depreciated value
- Glass and signage — Often excluded unless specifically added