Business Insurance – FAQ

Work closely with your insurance professional in order to save money on your business insurance. As your Trusted Advisor, we can work with you to make recommendations based upon your specific needs. We can make policy adjustments, such as choosing higher deductibles, or placing your coverage on a package policy, as well as work with you on ways to prevent loss.

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.

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. You can also choose not to carry on the partners in a partnership. Corporations may also exclude up to three officers, while covering all other employees. 

Discontinued Operations and Products Coverage is a necessity for most contractors and manufacturers. This coverage is intended to provide completed operations and products coverage, either 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.

Professional Liability Insurance is insurance that protects professionals against negligence and other claims initiated by a third party, such as their clients.  Doctors, lawyers, accountants, realtors, and other licensed professionals purchase this coverage to address any losses not covered under their general liability policies.  This insurance covers the professional in the event that a client is harmed from advice or services that the professional has provided which renders said professional to be held legally liable. These can be for an error or omission, neglect or breach of duty, a misstatement or misrepresentation or inadequate services rendered. 

Completed Operations Insurance 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.

Products Liability Insurance 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 due to their product. It provides coverage for the policyholder against claims stemming from products sold, manufactured, or distributed.