Which Business Insurance Coverages Do You Need?
The types and amount of insurance that you need for your small business are based on several factors. What type of business are you in? Where is it located? Do you have employees?
You can evaluate your insurance needs—and start your search for insurance—by first considering the size of your business. These definitions may vary, but are generally based on the number of employees, total sales and earnings. The definitions below can help you determine where your business falls—and your insurance professional can provide guidance as well.
Business Insurance Defined
Insurance coverage that protects businesses from losses due to events that may occur during the normal course of business. There are many types of insurance for businesses including coverage for property damage, legal liability and employee-related risks. Companies evaluate their insurance needs based on potential risks, which can vary depending on the type of environment in which the company operates.
It is especially important for small business owners to carefully consider and evaluate their business insurance needs because they may have more personal financial exposure in the event of loss. If a business owner does not feel he or she has the ability to effectively asses business risk and the need for coverage, he or she should work with a reputable, experienced and licensed insurance agent or broker.
General LiabilityCoverage Required
Unfortunately for every business owner, the chances of getting sued have dramatically increased in the last decade. General Liability insurance can prevent a legal suit from turning into a financial disaster by providing financial protection in case your business is ever sued or held legally responsible for some injury or damage.
General Liability Covers a Broad Range of Protection
- Bodily Injury, including the cost of care, the loss of services, and the restitution for any death that results from injury.
- Property Damage coverage for the physical damage to property of others or the loss of use of that property.
- Products-Completed Operations provides liability protection (damages and legal expenses up to your policy’s limit) if an injury ever resulted from something your company made or service your company provided.
- Products Liability is a more specialized product liability insurance that protects your company against lawsuits from product-related injury or accidents.
- Contractual Liability extends to any liability you may assume by entering into a variety of contracts.
- Other coverage includes: Reasonable Use of Force; Borrowed Equipment; Liquor Liability; Non-Owned Vehicles (such as aircraft and watercraft); Fire, Lightning or Explosion Damage; Water Damage Liability Protection; Legal Defense Costs; Medical Payments; Personal Injury; Advertising Injury; and specialized liability protection for specific business types.
Workers CompensationCoverage Required
Workers Compensation Insurance is designed to help companies pay these benefits. As a protection for employees, most states require that employers carry some form of Workers Compensation Insurance. Workers Compensation Insurance is not health insurance. Workers Compensation is designed specifically for injuries sustained on the job.
Do You Need Workers Compensation Coverage?
- Employers have a legal responsibility to their employees to make the workplace safe. However, accidents happen even when every reasonable safety measure has been taken.
- Workers compensation insurance covers workers injured on the job, whether they’re hurt on the workplace premises or elsewhere, or in auto accidents while on business.
- Workers compensation provides payments to injured workers, without regard to who was at fault in the accident, for time lost from work and for medical and rehabilitation services.
- In most states, if you have employees, you are required to carry Workers Compensation coverage.
Business Owners Policy (BOP)Coverage Consider
A Business Owners Policy—can protect your small business against today’s most common risks. Fire, burglary, liability and business interruption losses are all covered under a BOP. Since a BOP is prepackaged, there is only one policy to review and it can be more cost effective than purchasing separate policies. Additional coverage can be added in the form of endorsements or riders.
- Coverage starting at $75,000
- Living benefits.
- Convertible to lifelong coverage that builds cash value regardless of health.
Workers compensation laws were created to ensure that employees who are injured on the job are provided with fixed monetary awards. This eliminates the need for litigation and creates an easier process for the employee.
Each state has different laws governing the amount and duration of lost income benefits, the provision of medical and rehabilitation services and how the system is administered. For example, in most states there are regulations that cover whether the worker or employer can choose the doctor who treats the injuries and how disputes about benefits are resolved.
Workers compensation insurance must be bought as a separate policy. Although in-home business and business owners policies (BOPs) are sold as package policies, they don’t include coverage for workers’ injuries.
Workers Compensation Benefits
Workers’ compensation should not be confused with disability insurance or unemployment income; it only pays workers who are injured on the job, while disability insurance pays out regardless of when or where the insured is injured or disabled. Workers’ compensation also does not cover unemployment. However, workers compensation does cover:
- Work-related injuries, illnesses
- Medical expenses
- Rehabilitation costs
- Lost wages
- Death benefits
Required In Most States
Most states require employers to buy Workers’ Compensation Insurance as soon as they hire their first employee. Even when that’s not the case, it’s smart to have this policy, because the cost of workplace injuries is substantial:
- The average workplace injury claim costs $36,551.
- Recovering from a workplace injury took a median of nine days in 2014.
- Productivity losses come to about $3,600 per hourly worker and $2,650 per salaried employee.
Protecting Your Business, Yourself
As a business owner with employees, it is imperative to carry workers compensation insurance. The penalties for not carrying workers compensation are severe and include the following:
- State Fines
- Stop Order
- Additional Fines
- Workers Compensation Appeals Board
- Employer Liability
Commercial auto insurance is a vehicle insurance policy that provides financial protection for a business’ vehicles and its drivers. Employees involved in on-the-job collisions will receive coverage for medical injuries as well, regardless of fault.
The most common type of commercial auto insurance is liability coverage, which most states require. It covers a driver liable for damaging cars or injuring others. Other types of commercial auto insurance include collision, uninsured, gap and personal protection.
Types of Coverage
Coverage helps protect you from costs associated with injuries or property damage suffered by others in an accident caused by you or your employee in your insured commercial vehicle.
Physical Damage Coverage
Commercial physical damage coverage helps cover the cost of repair or replacement of damaged commercial vehicles.
Commercial uninsured motorists coverage can help if you or your employees are hurt, or your commercial vehicle is damaged in an accident caused by an uninsured driver.
Getting A Commercial Auto Insurance Quote
Quoting online with 1st Quality is quick & easy, just answer a few simple question, give us some information about your organization & vehicles & we will give you an accurate quote to consider.
What you will need to fill the business insurance quote online
Below are a list of items you will need to provide to get a commercial auto insurance quote from us online. The more accurate the information is, the more accurate your quote will be.
What is the name of the organization, address, phone, etc.?
What does the organization do?
How many vehicle’s does the organization own and operate?
How many drivers operate the organizations commercial vehicle’s?
Current Insurance Information
What insurance company currently with? Have you had any claims?
Advantage of 1st Quality Insurance Agents
Our agents are here for you to make sure that all of your insurance needs are met. We will go the extra mile to make sure you are completely satisfied with our services. Let us help you find the right coverage today.
Our agents will try to find you the best coverages possible, without compromising coverages.
With access to some of th best (A,A+) Rated Insurance Companies, we have you covered.
All claims are to be reported directly to the insurance company, however, our agents will assist you with your claim if the need arises.
Explaining your coverage
Our agents will take the time to explain any questions you may have about your coverages.
When shopping your insurance, our agents will look to provide you with any eligible discounts.
Why choose 1st Quality Insurance Group?
We have over 25 years of insurance experience, local agents across 18 states and the ability to provide you a personal auto quote in minutes.
- Experienced licensed professionals.
- Fast auto insurance quote time.
- Personalized friendly service.
- Work with the highest (A) Rated Insurance Companies.
- Local community presence.