A commodity broker acts as an agent and is responsible for handling the buying and selling of commodity contracts. Commodity brokers may work for themselves, on the trade floor or for brokerage firms. As a commodity broker, you are exposed to many business risks including professional liabilities, general liabilities and a variety of crimes, particularly of fraud. Protect your business with commodity broker insurance.
Types of Commodity Broker Insurance
There are many different types of insurance policies for commodity brokers as each policy covers a different risk. The following insurance policies are the most important and common types in your area of business.
One of the most important insurance policies for any business to have is general liability insurance. If you run your commodity broker business from an office, clients will visit you and are therefore put in risk. Any accident occurring on your business premises is then covered by general liability. It can also cover completed operations, which includes services you provide. If you sell any type of products, such as a program you built to help your clients with their brokerage needs, it is also covered by the policy.
Professional liability insurance, or errors and omissions, is an paramount policy for commodity brokers. Due to your unique financial responsibilities, you can be held accountable for even the smallest mistake made or omission. These mistakes cause damage and loss for your clients, which in turn means a loss and a potential lawsuit for you. With professional liability insurance, you have adequate protection against these claims.
Every time you use your own vehicle for a business task, like meeting clients, your vehicle should be covered by a commercial auto policy. Business auto insurance is a good way to get coverage for business errands, which will cover property insurance including your vehicle and others involved, bodily injury, theft and vandalism.
If an unexpected event, like a fire or natural disaster occurred, your business may not be able to function. It would also cost you thousands of dollars to make repairs and replace furniture or office supplies that were destroyed in the process. To mitigate these risks, you need a business property insurance policy as an important component of your commodity broker insurance. With business property insurance, a catastrophe like these would still cause damage, but the repairs are covered by the policy.
Cyber liability insurance protects against crimes committed online. If you sell your services online or run a website for marketing your business, you should have this policy. Fraud is very common, even with excellent security on your website. Forged payments, viruses on the site and other crimes can cause damage to your clients, visitors to your site and your business. With cyber liability insurance, the damages and legal claims are covered by the policy.
Workers’ compensation insurance protects employees if they get an injury or illness at work. Commodity brokers and their staff may seem to have low risk, but they could fall off a stepladder or get a back or wrist injury from performing repetitive functions each day. Medical costs, recovery costs like physical therapy, medications, and lost income while they recover, are all covered by the policy. It also prevents employees from suing you for damages following the injury.
Commodity Broker Crime Insurance
One of your risks as a commodity broker is that of crimes. These could be caused by employees or other criminals who steal money from your business, vandalize your business property or commit fraudulent activity. Protect yourself from all types of crimes by getting a crime insurance policy. It won’t prevent crimes from occurring, but can prevent you from losing your business income as a result.
As a commodity broker, the smallest mistake could mean not only losing your business but your reputation. The only way to prevent this is by getting proper commodity broker insurance for all probable risks. This gives you the opportunity to be successful in your endeavors while mitigating your risks.