Insuring Your Business

Wow! Where to begin? First of all, if you own a business you are truly on the line when it comes to liability exposures. Lawsuits are common; in fact it's hard to pick up the paper without reading about how somebody is suing a business for what seems like something crazy "Hot coffee claim results in 1,000,000 settlement"... and the list goes on and on. The point is, owning a business can be quite risky. This subject is too complex to fully cover on one page, but here are a few policies that many businesses use to protect themselves.

General Liability: This is a policy that all businesses must have. General Liability offers insurance for the business if it (or the owner if you are a sole proprietor) is sued for certain reasons. Common areas insured on this policy include: bodily injury, property damage, products and completed operations, liability for sub-contractors, Personal injury, Advertising injury... it's a pretty long list. However, it is important to note that not all liability exposures are insured on a general liability policy. For example, if you are sued by an employee for wrongful termination, your general liability will probably not respond for you. Another common area not insured is professional liability exposures. For example, if you are an accountant and you botch someone's tax return, causing financial damage to the client, you need errors and omissions insurance. If you are a doctor you need medical malpractice insurance. To see if your business needs professional liability, just give us a call.

Business Auto: Business Auto is a huge area of concern, simply because driving is probably the most risky activity most companies do day to day. It is vital that you have adequate limits, because if something goes wrong, remember your company and reputation are on the line. To complicate matters, the business (and the owner) are liable for employees driving company vehicles, as well as employees driving their own vehicle on company business. Business auto policies are similar to personal auto policies as far as how the coverage works, with some exceptions.

Workers Comp: This policy covers medical expenses and lost wages (to a limit) of employees injured on the job. The policy also offers benefits to employees suffering from occupational diseases. Owners and corporate officers can opt into the policy or exclude coverage on themselves. A common questions is, "Do I need workers comp?" The answer is determined by the type of business structure (sole proprietor, LLC, corp... ) and how many employees and owners are working in the business. You can have big problems if you operate a business that is supposed to carry workers comp, but you neglect to do so. If an employee happens to be injured, you can be fined a lot of money, plus damages the employee suffered. Once there are three people working in the business (including owners) you are likely required to carry workers comp.

Insuring your business can be complex. As an independent insurance agency, we work with a number of highly rated insurance companies to offer you the best price and the best coverage for you. To discuss your business in detail, please contact our commercial insurance department at 875-8889 or 1-866-657-9865 toll free.