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Not sure what you need? Here are some basics to get you started.
Property InsuranceWhat is property insurance? Return To Top
Property insurance
protects your buildings and equipment, stock, furniture and fixtures.
Some policies include equipment breakdown and business income coverage.
Basic property insurance will generally cover your business for losses
in the event of a fire or lightning strike and will pay the cost of
removing property to protect it from further loss. Additionally, a
standard small business insurance policy will usually cover losses from
windstorm, hail, explosion, riot and civil commotion and damage caused
by aircraft, automobiles or vandalism.
How much property insurance
does my small business need? Return To Top
Property insurance can be purchased on the basis of the property's
actual value (the replacement cost minus depreciation); its replacement
value (the cost of replacing the item without deducting for
depreciation); or an agreed-upon amount.
How does liability insurance
coverage protect my small business? Return To Top
There are many different types of third-party liabilities to be covered
for a business. Business liability insurance may protect you from claims
arising from someone's bodily or personal injuries. Other items that
could be covered are damage to the property of others,
products-completed operations, advertising, premises operations, fire,
legal liability and related legal defense costs. For instance, liability
insurance will not only pay the cost of covered damages but also the
attorney fees and other costs associated with your defense.
What does the term "bodily injury" in
a liability insurance policy mean? Return To Top
This refers to the injury, sickness, disease, or even death, of any
person that occurs during the policy period.
What does "personal and advertising
injury" mean in general liability insurance coverage? Return To Top
Personal and advertising injury means being responsible for libel,
slander or any defamatory or disparaging material, or a publication or
utterance in violation of an individual's right of privacy; wrongful
entry or eviction, or other invasion of the right of private occupancy;
false arrest, wrongful detention, false imprisonment, or malicious
prosecution; which occurs during the policy period.
What's the difference between
claims-made coverage and prior acts coverage? Return To Top
While claims-made coverage applies to a claim which is made during the
policy period, priors acts coverage offers protection for wrongful acts
that happened before the inception date of an insurance policy...but
have yet to become known. For example, a buyer of E&O insurance may
want to extend coverage for a period of time prior to when the coverage
becomes effective...just in case.
How does an umbrella insurance
policy work? Return
To Top
A policy designed to provide protection against catastrophic losses, the
umbrella insurance policy is generally written over various primary
liability policies, such as a general liability insurance policy,
business auto policy and employers' liability coverage. Once the
underlying limits of these primary policies are exhausted, the umbrella
liability policy would provide further coverage beyond the limits of
those policies.
How does Workers' Compensation
Insurance work? Return
To Top
Workers' compensation pays for the rehabilitation, recovery and medical
bills of employees work-related injuries, as well as lost time when they
are unable to work because of a work-related injury. Workers'
compensation is not a substitute for health or medical insurance, since
employees are only covered for on-the-job injuries.
When do I need to buy
workers' compensation insurance? Return To Top
In most states, workers' compensation is required when you have one or
more employees. There are a few states that do not require employers to
carry workers' compensation coverage.
Where do I buy workers'
compensation? Return
To Top
Almost all states are "open market", which means the coverage is
underwritten by private insurers; and some states are "closed" or
"monopolistic" - the coverage is underwritten by a state-sponsored fund
(ND, OH, WA, WV, WY). In states that are open, rates can vary between
insurance carriers depending on the type of business the carrier is
attempting to attract. In an open market, the rates for workers'
compensation are competitive.
How much does workers'
compensation insurance cost? Return To Top
Workers' compensation pricing is based upon your employee payroll, the
number and job classification of the employees, classification of your
business and past loss experience. The employer pays for the cost of the
workers' compensation.
Why should I purchase
commercial auto insurance? Return To Top
Many personal auto insurance policies exclude coverage if a vehicle is
used mainly for business. A commercial auto policy provides coverage for
autos owned by a business if these vehicles are in an accident. The
insurance pays to repair or replace the vehicle and the vehicle of the
third party damaged by the employee. It also pays for the medical
expenses of those injured in an accident.
Will my employees' personal
cars be covered under a commercial auto policy if they are using their
cars for business? Return To Top
Most commercial auto insurance policies cover the liability for a
business if employees use their own cars for business, provided that the
business owner has purchased coverage for non-owned liability. Separate
non-owned physical damage coverage is available to cover actual damage
to the auto. However, the employees' personal auto policy would be the
primary coverage for damage to their automobiles.
What is errors & omissions
insurance? Return
To Top
Errors & omissions insurance provides coverage for people who give
advice, make educated recommendations, design solutions or represent the
needs of others. "E&O" is also referred to as professional liability
or malpractice insurance. This type of liability insurance would cover
you and your employees in the event someone claims you incorrectly
performed or failed to perform your professional duties.
What is a business owners' policy or
a "BOP"? Return
To Top
A BOP is a customized policy for small businesses that combines property
insurance and liability insurance in one policy, and generally includes
additional coverages at little or no additional premium. So it allows
you to have broad coverage at affordable premiums. Most insurance
carriers have customized BOPs for particular industries and services.
Even if you have a BOP, though, most small business owners should
consider adding coverage for conditions that might not otherwise be
covered. Additional coverages tailored to your industry are often
available, such as temperature changes, equipment breakdown, or computer
equipment failure.
What is business income
insurance? Return
To Top
This insurance may reimburse you for the net income that would have been
earned if, for example, a fire or other covered causes of loss had not
occurred. Losses due to down time or extra expenses needed to restore
operations (such as additional property rental) also may be covered.
What is employment practices
liability insurance? Return To Top
Employment practices liability insurance (EPLI)is designed to protect
employers against claims of employee sexual harassment, discrimination,
wrongful termination and other employment-related litigation. Many
insurance companies offer employment practices liability insurance as
part of their business owners' policy or as a stand-alone policy.
What is inland marine insurance?
Why do I need it for my business? Return To Top
Despite its misleading name, inland marine is a broad type of insurance
which covers articles that may be transported from place to place as
well as via bridges and tunnels. Specifically, this type of insurance
protects a wide range of high risk, mobile items, including: specialized
contractor's tools and equipment, electronic data processing systems,
from mainframe computers to laptops, fine art objects and jewelry.