Insurance, especially business insurance, can be a complex subject. Do you have assets? Inventory? Employees? Because there are so many variables, it it's hard to know if you have the right coverage in the right amounts for your company. Too often, owners find out the hard way that they are not properly covered.
Insurance can protect your business from catastrophic events like fire, severe weather, lawsuits and serious illness and death. Insurance can help attract and hold on to valuable employees. We can help you minimize risks and create a complete insurance plan for your business to make sure that you are protected.
Property and liability insurance are the most basic -- and critical coverage most businesses need. Property insurance protects against fire and theft, while liability insurance protects your firm from lawsuits. Specialized coverage can be purchased for things like computer protection, earthquake and flood insurance, workers' compensation (required if you have employees) or auto insurance.
Package policies, or Business Owner's Policies are designed to meet the needs of operations such as offices, stores or apartment houses. Some are available for contractors and light manufacturers, but enterprises with specialized insurance needs. These combine coverage into a package that generally costs less than individual policies purchased separately. It usually includes property, liability and crime coverage, as well as specialty coverage, depending on the needs of the business.
Premiums are based on an audit of company sales, and coverage can be expanded for things like computer equipment, valuable papers, accounts receivable and transportation.
Property insurance
Property insurance covers buildings and their contents from things like fire, theft and wind damage. You need to understand what a policy excludes, and then extend your coverage by purchasing additional coverage, as needed. Exclusions often include wear and tear, mechanical breakdown, floods and earthquakes. Exclusions can also cover outdoor items separate from the building, including signs, fences and trees.
Liability insurance
Liability insurance is increasingly important in our litigious society. Liability coverage protects a business that is sued for injury or property damage to third parties. It generally pays damages related to bodily injury, property damage, personal injury (e.g., libel or slander) or advertising injury. It also pays for the defense and related legal costs for a covered claim or lawsuit.
Umbrella policies
Umbrella liability insurance provides extra protection for accidents or incidents in which one or more people are injured. It extends liability limits on your commercial auto policy. Limits are generally purchased in $1 million increments. This coverage protects assets so the business can survive a large, catastrophic loss.
Auto insurance for business
Any business with one or more vehicles must have auto insurance. An owner who uses a vehicle for business and personal use should have the insurance is written in the name of the person or entity that holds title to the vehicle. Problems can occur if the firm owns the vehicle, but the insurance is written in the name of the company's owner rather than the company itself.
Policies should cover all autos used for company business -- including those the business does not own -- to protect the business from liability if an employee is driving a personal car on company business. Fleet coverage is more complex. Detailed driving records of everyone who will drive for the company must be collected to calculate the premium.
Specialty coverage
Specialty coverage may be needed, depending on the nature of the business. Property coverage can be extended to cover all computer hardware and software and replacement of lost critical information. If some covered cause closes a business, business income insurance -- or business interruption insurance -- pays the loss of net profit and ongoing expenses during that period, paying the owner what the company would have earned during the time the business was closed.
Additional business income coverage can be purchased for the time when the company is up and going again, but still trying to win back customers. This is called extended period of indemnity coverage.
Call us today to discuss your specific needs and questions. We can help you establish appropriate insurance coverage.
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