Business.com Media, Inc. All rights reserved. |
888.441.4466
Business.com Media, Inc. All rights reserved. | 888.441.4466
Table Of Contents Overview Page 1 Commercial Business Insurances
Page 2 General Liability, Commercial Liability & Product
Liability Page 2 Employee Insurances Page 2 & Page 3 Workers
Compensation Insurance Page 3 Unemployment and Disability Insurance
Page 3 Business.com Insurance Checklist. Page 4, 5, & 6
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Fend Off Aggressive Liabilities Just as a soldier needs a
protective shield and proper pieces of sturdy armor to defend a
kingdom, your small business also requires defensive insurance to
guard you from surprise attacks, conflicts, and unwanted
liabilities. Which type of protective gear will you choose in order
to safeguard your startup? Make sure your infantry is well prepared
to face any sort of possible issue. Virtually all businesses are
required to purchase some type of insurance in order to legally
practice business. The first reason you need business insurance is
to comply with the law. Secondly, if you are in business without
insurance, both your business and personal assets are at risk, even
if you have taken precautions to shield yourself from some forms of
liability. If you have something to lose, business insurance will
significantly reduce the chance of losing it due to an accident or
misfortune. Even if youve incorporated your business, doing so is
not going to protect attorneys from suing you or your business for
damages. If they win, they can seize your assets, garnish your
wages, and often pierce corporate veils to attach liability to you,
personally, for judgments against your business. Insurance, more
than incorporation, protects you from liability losses. There are
many different types of business insurance coverage and a wide
variety of policies to address specific business needs. Generally,
there are two kinds of business insurance - commercial business
insurance and insurance for business employees. Do your research
and find out which type of insurance youll need to add to your
infantry to safeguard your business.
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Must-Have Protective Insurances Commercial Business Insurances
General Liability. Provides coverage against legal actions
resulting from accidents, injuries and claims of negligence.
Product Liability. Protects against financial loss resulting from
injury caused by a product defect. Even if you do not manufacture
the product, if you sell or distribute it, you are potentially
liable According to the U.S. Consumer Product Safety Commission
(CPSC) ,more than 59 million items were recalled due to safety
violations, design flaws or unforeseen hazards that put their
owners at risk in 2012. Professional Liability. Protects against
claims of malpractice, negligence or errors in providing a service.
Some states require professional liability insurance for certain
professions, such as physicians. Commercial Property. Covers loss
of property (broadly defined as lost income, business interruption,
buildings, computers, documents and money) against fire, smoke,
severe weather, vandalism, and other disasters. According to
Enhance Insurance, $17,612 is the average cost of an arson.
Home-Based Business. If you run a business out of your house, your
homeowner's insurance most likely does not provide coverage for
professional or product liability or work-related accidents. You
may need to get coverage expressly for your home business. Business
Insurances for Employees If you have employees, youll most likely
need to insure them. Here are three types of business insurance for
employees:
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Business Insurances for Employees cont., Workers Compensation
Insurance. Covers employees if they are injured on the job.
According to the U.S. Bureau of Labor Statistics, 3 million
nonfatal workplace accidents occurred in 2012 3.5 workers out of
every 100 employees were injured on the job Some states have
exemptions if the business only has one or two employees. Premiums
are based on a percentage of payroll costs and work category, with
a greater percentage charged for types of work that carry greater
risk. Unemployment Insurance. Although they are not an insurance
policy, you are required to pay state taxes to fund unemployment
insurance programs. Consult your state's tax office about how to
properly register your business and how you will be taxed.
Disability Insurance. Required for businesses based in California,
Hawaii, New Jersey, New York, Puerto Rico, or Rhode Island. Even if
your state doesn't require it, you may wish to offer disability
insurance as part of an employee benefits package. A great source
for more detailed information, as well as links to state insurance
departments, is Insure U, the insurance university for small
businesses. Insure U is put together by the National Association of
Insurance Commissioners (NAIC), a nonprofit organization comprised
of insurance regulators from the 50 U.S. states, the District of
Columbia, and U.S. territories.
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Needs Insurer 1 Insurer 2 Coverage Needed: Property/Casualty
General Liability Product Liability Commercial Auto Business
Interruption Health Insurance Life and Disability Workers
Compensation Umbrella Liability Umbrella Liability Business Owner
Policy (BOP) Home-Based Business Agent Broker Property Casualty
Coverage: Deductible Annual Premium Policy Limits Equipment List:
Purchase or Lease Documents Original Cost Current Value Replacement
Value Real Estate List: Size of Rented Premise Size of Owned
Premises Building Uses Building Safety Equipment Lease or Purchase
Documents Cost When Purchased Replacement Cost Business Insurance
Checklist
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Needs Insurer 1 Insurer 2 Liability Coverage: Deductible Annual
Premium Policy Limits List of perils your business is subject to
Commercial Auto Coverage: Deductible Annual Premium Policy Limits
Number of Vehicles Owned/Leased Minimum liability coverage required
Commercial Auto List: Year Make and Model of Each Vehicle Date
Purchased or Leased + Documents Current Mileage for Each Vehicle
Estimated Annual Mileage for Each Vehicle Percentage Personal Use
Percentage Business Use Business Interruption Coverage: Deductible
Annual Premium Policy Limits Average monthly sales and costs Cost
to relocate business Cost to associated to interruption Health
Insurance Coverage: Deductible Annual Premium Policy Limits
Business Insurance Checklist
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Needs Insurer 1 Insurer 2 Percentage of cost charged to employees
Umbrella Insurance Coverage: Deductible Annual Premium Policy
Limits Business Insurance Checklist
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Arm your business. Thanks and come back soon. Each one of these
insurances is vital in helping to defend a small business against
possible liabilities. Look for more from Business.com on how to
support a thriving startup and enable future growth and
development.