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Things you need to know about Business Insurance
Staring a business takes a lot of planning time, sorting out all of the financial aspects and putting all the pieces in place for the product you sell or service you provide. Like your business, your insurance needs to be in order to make sure that every aspect of your business is properly covered to protect you against unforeseen loss.
Since every business is unique, our agency takes the time to truly understand your business, helping to cover you against losses that may occur during the course of business. We want to be sure that when you have a policy with us, you fully understand the coverage you are purchasing and what it all means. Our agency will take the necessary time to explain your coverage to you, so together, we can make the right decision on the protection you and your business need. Apply for Commercial Insurance Now!
By periodically reviewing your policy, we are able to see how your situation may have changed. We will review your coverage again, make adjustments if necessary, and continue to make sure you are adequately covered.
In dealing with a local agency instead of an 800 number, we are able to get to know you, your business, and your situation to better serve your changing needs.
With a local agent, you will gain the added benefit of having someone that can assist you along the way with any issues that may arise during a claims situation. It could be as simple as helping explain your coverage or work with you and the adjustor to coordinate things.
There are many different types of commercial insurance coverage you need to understand when putting a policy together:
There are many different types of businesses and certain policies that best fit each business. It is our job to find the right one for your needs. Below are some different types of businesses and descriptions we are able insure.
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Artisan Contractor - Usually trades people such as painters, electricians, plumbers, carpenters and heating & cooling.
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Habitat ional - Types of housing such as apartments, condo complexes and rental properties.
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Retail/Service - Stores that provide services and sell products such as food stores, hardware stores, clothing stores, repair shops, offices and clothing stores.
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Restaurant - Provides food and dining services such as fine dining restaurants, Coney islands, fast food, deli, carry outs and coffee shops.
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Auto Repair/Sales - Repair shops, body shops, oil change stores, muffler shops, auto glass shops and gasoline service stations.
Examples of coverage needed:
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Property coverage - Covers your building, business property, equipment & tools and business interruption coverage.
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General Liability - Provides you with coverage from many liability exposures you have as a business owner such as your premises, contractual, personal and advertising injury.
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Business Auto - Protecting the vehicles used in your business from losses occurring in accidents, theft, vandalism, liability and many others.
Business Insurance Frequently Asked Questions
Do I need a commercial auto insurance policy?
As a business owner, you will need the same kinds of insurance coverage for the car you use in your business as you do for a car used for personal use-- liability, collision and comprehensive (if you have full coverage on the car), personal injury protection and coverage for uninsured motorists.
Many people use the same vehicle for personal and business use. If the vehicle is owned by the business, you need to make sure the name of the business appears on the policy as the named insured instead of your name. This will help to avoid any possible confusion in the event that you need to file a claim or a claim is filed against you. Your agent can assist you in determining whether or not your car should be insured on personal or business policy.
What is workers compensation?
Workers compensation provides payment to injured workers for time lost from work and for medical and rehabilitation services, without regard to who was at fault in the accident. It would also provide death benefits to surviving spouses and dependents.
What does a business owner’s policy cover?
Insurance companies can offer business insurance policies that combine protection from all major property and liability risks in one package. (They can also be sold separately.) A common package purchased by small or mid-sized businesses is the business owner’s policy (BOP). These package policies are created for businesses that usually face the same kind and degree of risk. Larger companies may decide to purchase a commercial package policy or customize their policies to meet the special risks they face.
What do Business Owner Policies (BOPs) include?
Property insurance for buildings and contents owned by the company. There are generally two different forms, a standard form and a special form, which provides more comprehensive coverage.
Business interruption insurance, which covers the loss of income resulting from a fire or other situation that would interrupt the normal business process.
Liability protection, which provides coverage for the company's legal responsibility for the harm it may cause to others. This harm could be a result of things the owner or employees did or failed to do during business operations that may can injury or harm to others or property. This coverage would protect the company in the event of a lawsuit.
BOPs do not provide coverage for professional liability, auto insurance, worker’s compensation or health and disability insurance. You would need a separate insurance policy to cover professional services, vehicles and your employees.
Do I need to insure my In-Home Business?
Many people think their homeowner’s policy is all they need. But a typical homeowners policy may not provide enough coverage. The usual limit is $2,500 for your business equipment while at home and $250 when it’s off the premises.
Most homeowner’s policies specifically exclude business liabilities. Even though your at-home business may involve only yourself working just part time, you could still have liability risk. For example, someone may come to your home for a business purpose–such as delivering materials–and sustain an injury on your premises for which they believe you are responsible. Your homeowner’s policy would probably not cover the damages.
Does a nonprofit organization need to be insured?
Just like a business or a homeowner, a nonprofit organization needs to protect its property from loss in a fire, by theft or from many other hazards. Nonprofits can be lawsuit targets as well. Without insurance, a lawsuit could prove financially devastating. Whether a human services, arts, educational, civic or other type of nonprofit, your organization should be protected by liability insurance to cover defense costs and damages.
What is Property Insurance?
There are many aspects to property insurance. If your organization owns real estate, you will want to insure the property. If it rents or leases its premises, you may want coverage for tenant’s improvements and betterments. These are fixtures, alterations, installations or additions that you have put into the space that cannot legally be removed from the landlord’s premises.
What is Liability Insurance?
Nonprofits have no immunity from lawsuits. Clients, volunteers, vendors, donors or visitors may sue if they are accidentally injured on your premises or while on business for the organization. Someone may sue claiming libel or slander. Employees may sue claiming discrimination or sexual harassment. Liability insurance covers these risks.
Business Auto Insurance?
Vehicles owned by a nonprofit organization will need to be insured with a business auto policy.
Do I need Workers Compensation Insurance?
States have varying rules about when an employer must provide workers compensation insurance. If your organization has three or more employees, you should check with your state department of workers compensation to see if you are required to provide workers comp insurance.
How Are Liability And Damages Determined?
Everyone in society has a duty to take reasonable care that his or her actions do not injure others. The same rule applies to business entities. Not repairing a pot hole in a parking lot, not lighting a dark stairway, failing to train workers how to do their jobs safely and legally or failing to provide directions for the safe use of a product can constitute negligence if a client, customer or member of the general public is injured as a result. The legal meaning of negligence is failure to exercise reasonable care.
If the parties do not agree to settle a liability lawsuit, there will be a trial. Or the parties may agree to use some alternative means of dispute resolution, such as arbitration, and be bound by the arbitrator’s ruling.
The law of the state where the lawsuit is filed sets the rules for the determination of liability and damages. The amount of damages imposed in any particular case is, of course, in part a function of the economic losses the plaintiff can prove he or she has endured due to the defendant’s negligence. In some states, plaintiffs may also be awarded damages for pain and suffering and other non-economic losses.
What's the difference between an Additional Insured and Additional Named Insured?
An Additional Insured is an individual or entity that is not automatically included as an insured under the policy of another, but for whom the named insured's policy provides a certain degree of protection. An endorsement is typically required to effect additional insured status. The named insured's reason for providing additional insured status to others may be a desire to protect the other party because of a close relationship with that party (e.g., employees or members of an insured club) or to comply with a contractual agreement requiring the named insured to do so (e.g., customers or owners of property leased by the named insured).
And An Additional Named Insured is an individual or entity that is added to a policy with the status of named insured after the policy is written. Such an individual or entity would have the same rights and responsibilities as an individual or entity named as an insured in the policy declarations (other than those rights and responsibilities reserved to the first named insured). In this sense the term can be contrasted with additional insured, an individual or entity added to a policy as an insured but not as a named insured. The term additional named insured has not acquired a uniformly agreed-upon meaning within the insurance industry, and use of the term in the two different senses defined above often produces confusion in requests for additional insured status between contracting parties.
Why do I need certificates of insurance from sub-contractors?
An audit may require you to show proof that sub-contractors had their own insurance coverage. The sub-contractors' certificates of insurance will prevent you from being charged for their exposure.
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