|
||||||||||
Commercial FAQs
Commercial FAQs
Does my new business immediately need insurance coverage?
When working out of my home. Will my homeowners insurance cover my business?
What types of property can I insure?
My business does not own any major business assets. Why would I need insurance?
With new lawsuits arising everyday, what happens if someone files a lawsuit against my business.
What is business income and extra expense coverage?
What type of policy provides coverage for my employees in the event they are injured on the job?
What steps can I take to lower my insurance premiums?
Should I require certificates of insurance for sub-contractors?
Does my new business immediately need insurance coverage?
Answer: Yes, any type of loss can occur from the minute you begin on your journey as a business owner. Most states will require you to carry a Workers Compensation policy for your employees. Also if you are renting or leasing your landlord and/or management company may require you to provide them with proof of premises liability coverage. Finally your business is a big financial and personal investment; don’t jeopardize either by not having the coverage you need to avoid disaster.
When working out of my home. Will my homeowners insurance cover my business?
Answer: Yes, on a very limited basis you may have coverage from your homeowner’s policy. Although it is important to know that no business liability coverage is included in a standard homeowner’s policy. LoPriore Insurance Agency can evaluate what, if any, additional coverage you need. This additional coverage may be added to your homeowner’s policy or provided with a separate commercial policy.
What types of property can I insure?
Answer: Business personal property comes in many shapes and sizes. The list below describes some of the property types you may want to consider insuring.
Buildings and other structures (owned or leased)
Furniture, equipment and supplies
Inventory
Money and securities
Records of accounts receivable
Improvements and betterments you made to the premises
Machinery
Boilers
Data processing equipment and media (including computers)
Valuable papers, books and documents
Mobile property such as automobiles, trucks and construction equipment
Satellite dishes
Signs, fences and other outdoor property not attached to a building
Intangible property (good will, trademarks, etc.)
Leased equipment
To establish the amount of insurance you need on each, your LoPriore Insurance agent can help you review the types of property you own and their uses.
My business does not own any major business assets. Why would I need insurance?
Answer: Every business has some type of property, similar to your home and car, your business needs to be protected from loss, damage and liability. Generally, business owner policies provide coverage for property and liability. Property insurance covers damage to or loss of the policyholder's property. Liability extends coverage for lawsuits and the cost for defending it.
With new lawsuits arising everyday, what happens if someone files a lawsuit against my business.
Answer: No business can afford to be unprepared for a lawsuit. Liability insurance protects your business assets when the business is accused for something the business did or failed to do which 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 standard businessowners policy provides liability coverage, as does a separate policy known as a commercial general liability (CGL) insurance policy. Generally, commercial liability insurance, whether purchased in a separate policy or as part of a standard businessowners policy, will cover bodily injury, property damage, personal injury or advertising injury. The medical expenses of a person or persons (other than employees) injured at the business or as a direct result of the operations of the business are also covered (up to a certain limit).
Usually excluded from both types of liability insurance policies are suits by customers against a business for nonperformance of a contract and by employees charging wrongful termination or racial or gender discrimination or harassment.
What is business income and extra expense coverage?
Answer: Business income insurance may reimburse you for ongoing expenses such as utility bills while your business is closed due to a property loss. This coverage also provides your loss of net income that you would have earned if a covered cause of property loss had not occurred. This coverage may also cover losses due to down time or extra expenses needed to restore operations (such as additional property rental expense).
What type of policy provides coverage for my employees in the event they are injured on the job?
Answer: Workers Compensation Policy provides both medical coverage and loss of wages benefits in the event of an on the job injury. State laws vary, but most states require that you carry workers compensation insurance. This protects the employee and also offers you, the business owner, and some immunity from lawsuit by an injured employee.
My business does not own a business auto and use my personal vehicle for business. Do I need a separate policy?
Answer: The simple answer is yes, whether or not you own a business automobile registered to your business and/or you or any of your employees use your personal vehicle for business use, a business auto policy will protect you from any motor vehicle exposures.
What steps can I take to lower my insurance premiums?
Answer: Remember that all insurance premiums are based on the risks involved. The insurance company evaluates the situation to determine the risks-or potential for losses-and bases its rates on the results. Therefore any steps you take to lower your risks not only can help safeguard your business but also may make you eligible for lower insurance rates.
Consider these steps to lower your insurance premium:
Install a fire alarm system, burglar alarm, or a sprinkler system to lower your insurance premium.
Updates to electrical, plumbing, roof and heat systems
Monitor employees driving records
Using a risk manager, such as outside consultant can advise you of any safety or environmental regulations you may have overlooked or not been aware of and talk to your employees about safety practices.
Increase your deductible when appropriate, determining on what deductible to use should be based on what is economically feasible for your business.
Should I require certificates of insurance for sub-contractors?
Answer: Yes, obtaining a certificate of insurance from the sub-contractor provides you with a summary of the sub-contractor’s insurance coverage. In most cases you may require the sub-contractor to name you as additional insured on their policy to ensure that their policy would act first in the event of a claim. Also at the time of your annual audit of your policy you may be required to show proof of the sub-contractor’s insurance coverage. Failing to provide sub-contractor’s certificates of insurance at time of audit may result in additional insurance premium.
