Business Insurance
Am I required to carry workers compensation on my employees and myself?
As the building owner, do I need to worry about Tenants Improvements and Betterments?
Does my company's accident record affect my premium?
How can I save money on my business insurance?
How do I determine if someone is an employee or an independent contractor?
How do I know what to carry for limits of coverage?
What are Products and Completed Operations Liability Insurance?
What does Commercial Property Insurance cover?
What is Discontinued Operations & Products Coverage and why would I need it?
What is General Liability Insurance?
What is non-owned and hired auto coverage?
What is Professional Liability Insurance?
Why am I being "charged" so much payroll for my general liability policy? I don't make that much.
Why are some general liability policies rated on area, and others on payroll or receipts?
Why does my private passenger vehicle have to go on my commercial policy?
Are there disasters my property insurance won't cover?
What is "Drive Other Car" Coverage?
Am I required to carry workers compensation on my employees and myself?
This depends upon the state in which your business is located; however, all states require workers compensation on employees. You are not required to carry it on your self as a sole proprietor and can choose not to carry on the partners in a partnership. Corporation may also exclude up to three officers, while covering all other employees.
As the building owner, do I need to worry about Tenants Improvements and Betterments?
Both the tenant, and the building owner need to be concerned about improvements and betterments. In most cases, when an insured installs improvements and betterments at their own expense, they have an insurable "use" interest in that property, and this can be covered by insurance, but legally, once they become part of the real property, they become the property of the building owner. The biggest danger here is that the building owner could suffer a coinsurance penalty (see what is coinsurance) if they have not included them in their insured building value.
Does my company's accident record affect my premium?
Yes. Your ability to control workplace accidents can affect your insurance premium. When you apply for Workers Compensation insurance, we can perform a Workers Compensation Claims Review. We review insurance company reserving practices, because every dollar of overstated reserves will ultimately find its way into you Experience Modifier. If your safety record is better than the average for your industry, your premium could be decreased. Worse than average loss history could result in increased premium.
How can I save money on my business insurance?
Work closely with your insurance professional. As your Trusted Advisor, we can work with you to make recommendations based upon your specific needs. We can make policy adjustments, like choosing higher deductibles, or placing your coverage on a package policy, as well as work with you on ways to prevent loss.
How do I determine if someone is an employee or an independent contractor?
Most state Labor Departments have written criteria to determine if someone is an employee or a contractor, and they should be specifically checked; however, here are some of the more significant indications that an individual is an employee and not an independent contractor:
- They have their own federal employer identification number.
- They have control over the performance of their work.
- They have control over the time their work is performed.
- They are not required to work exclusively for one employer.
How do I know what to carry for limits of coverage?
There is no single answer to this question; however, no business can afford to be unprepared for a lawsuit. Liability insurance protects your business assets when the business is sued for something the business did (or failed to do) that contributed to injury or property damage to someone else. Liability coverage extends not only to paying damages but also to the attorneys' fees and other costs involved in defending against the lawsuit-whether valid or not. The limits of liability that you carry will depend upon the assets that you need to protect, and what type of protection your business structure offers you. (For example, a corporation versus a sole proprietor). Discussing your particular situation with your insurance professional will help you identify limits.
What are Products and Completed Operations Liability Insurance?
Products liability may be included in the basic general liability coverage form, or be written on its own. It protects manufacturers, wholesalers and distributors against exposure to lawsuits by people who may have been injured or suffered other losses because of their product. It provides coverage for the policyholder against claims stemming from products sold, manufactured or distributed.
Completed operations responds to bodily injury or property damage claims that would occur after the completion of a project, resulting from the negligence of the work performed. For example, if a contractor were to build a deck, and fail to secure the railing property, and someone were to lean on the railing and suffer bodily injury, the completed operations portion of the general liability policy would respond. It is important to note however, that this does not cover the faulty work itself, just the resulting bodily injury and or property damage.
What does Commercial Property Insurance cover?
A commercial property insurance policy covers a business for loss to its "real" property - buildings; personal property - contents, equipment, furniture, fixtures and inventory and business incomes/extra expense coverage.
The coverage can be written in a variety of ways, based upon actual cash value, or replacement cost, basic or broad form coverage, specific of blanket insurance. It pays to seek the advice of an insurance professional to help you identify your specific needs.
What is Discontinued Operations & Products Coverage and why would I need it?
Discontinued operations coverage and discontinued products coverage is a necessity for most contractors, manufacturers and others. This coverage is intended to provide completed operations, and products coverage, after retirement, or after a business is no longer in business. Under the CGL policy, the claim must arise out of an occurrence that takes place during the policy period. If you close your business, or retire, and no longer have a CGL policy in effect, you would be without coverage. The Discontinued Operations and Products coverage would continue to provide you with the protection you need.
What is General Liability Insurance?
General liability insurance covers businesses against liability for bodily injury, property damage, or personal and advertising injury. This can include things like, accidents on the policy holders premises, business operations in progress, products that are manufactured or sold, completed operations in buildings of others, and publications that slander or libel a person or organization.
What is non-owned and hired auto coverage?
Hired auto liability, symbol 8, covers autos hired, rented or borrowed by the named insured business. Non-owned auto liability, symbol 9, covers the employer for actions taken against him, due to the employees use of their own vehicle, driven on behalf of the employer.
What is Professional Liability Insurance?
Professional Liability Insurance, can protect professionals and corporations against disputes related to the quality of services provided to third parties. These can be for and error or omission, neglect or breach of duty, a misstatement or misrepresentation or inadequate services rendered. Doctors, lawyers, accountants, brokers, realtors, and other licensed professionals purchase this coverage to address any losses not covered under their general liability policies.
Why am I being "charged" so much payroll for my general liability policy? I don't make that much.
Sole proprietors and partnerships are rated on a set, minimum payroll figure, no matter what you actually make. This figure is established by the National Council of Compensation Insurance and cannot be reduced.
Why are some general liability policies rated on area, and others on payroll or receipts?
Different rating methods are used to more accurately reflect the exposure. For example, a restaurants exposure is more accurately defined by using receipts, rather than area, because it better determines the volume of customers (exposure) that comes into the restaurant. However, an apartment building is rated by units or number of apartments, and an office building is rated on the area or square footage of the space. Contractors use payroll because this more accurately reflects their particular exposure.
Why does my private passenger vehicle have to go on my commercial policy?
If a private passenger auto (not a pick up or a van) is registered in the name of a business, it needs to be covered under a business auto policy. If the vehicle is registered in the individual's name, but is used for business use, some uses may be covered under the personal auto policy. (For example a sales person). The personal auto policy must be designated as business use, however.
Are there disasters my property insurance won't cover?
For You Property & Casualty
Even though "all risk" property insurance contracts do extend to cover a variety of calamities, there are standard exclusions where, in some cases, coverage is simply not available. For example, if you think in terms of natural disasters that may occur, like flood and earthquake, there are standard exclusions regarding these perils on most property policies. There are ways to purchase this coverage, however. More recently, the Federal Government passed legislation involving loss due to terrorism. Terrorism is now excluded from most commercial policies, but in some case may be bought back for an additional premium. Another more recent exclusion is damage or injury resulting from mold and fungi. As always, our recommendation is to discuss specifics with your agent, so that your needs may be properly addressed.
What is "Drive Other Car" Coverage?
Drive other car coverage provides liability, medical payments, uninsured/underinsured motorist, and physical damage coverage for the personal use of a non-owned automobile by the individual you wish to protect. If an individual, for example, a company officer, does not have their own personal auto policy, and drives a corporate car, you would want to add this coverage to protect them from exposures such as borrowing a neighbor's vehicle, or renting a car on vacation with their family.
If your business is a sole proprietorship, you should have the Individual Named Insured endorsement attached to your business auto policy to provide you with the same coverage.
