Business insurance works by establishing a contract between the insurer and client in which the latter agrees to share the risks of running their business in exchange for monthly premium payments. When a financial loss occurs, the business files a claim and seeks compensation from the insurer.
Businesses need various types of coverage to protect against common risks including property damage, lawsuits and lost income. Below are some of the most popular options:
Business Owner’s Policy (BOP)
A business owner’s policy offers multiple insurance products rolled into one package and is designed with small businesses in mind. It helps cover the most common business risks and may be less expensive than purchasing individual policies.
The property portion of a BOP covers damage or loss to a company’s buildings, equipment and inventory. This includes theft, fire and other incidents. Additionally, this policy can help cover losses that occur if you or your employees use a hired or non owned vehicle for business-related reasons and it is damaged or stolen.
Many insurers will have specific eligibility requirements based on your location, size and class of business. They also may require certain coverages like workers’ compensation and commercial auto to be included in a separate commercial policy. However, if you can qualify for a BOP it’s worth the cost to have everything in one place, saving you time and money. Also, it’s a great way to demonstrate to clients that you have a level of professionalism that makes them trust you with their business needs.
Commercial Auto Insurance
Commercial auto insurance provides liability and physical damage coverage for cars, trucks and vans that your business uses. This includes vehicles you lease or rent as well as those owned by your employees. It also covers personal use of company vehicles, when permitted by your policy (check your specific coverage for details). You may also want to consider hired and non-owned auto coverage, which provides liability protection if your employees drive their own cars or trucks as part of their work for your business.
Whether they are transporting tools to a jobsite or driving to meet clients, your workers depend on safe, functioning vehicles. A good New York commercial auto policy can help you fulfill your state’s minimum requirements for liability coverage, and it may also include comprehensive or collision physical damage loss, medical expenses for accident-related injuries to occupants of the vehicle and property damage to other vehicles and their owners. Talk to your independent agent about a commercial auto policy that’s right for your business.
General Liability Insurance
Though you try to run your business safely, accidents can still happen. And when they do, lawsuits can threaten your financial stability. Having the right insurance policies can help you preserve your assets, so you can continue to focus on what matters most.
General liability insurance, also known as commercial liability insurance, provides important coverage for most small businesses. It helps cover legal costs for bodily injury, property damage, personal and advertising injuries (like libel or slander), and settlement bonds or judgments.
This insurance is often required by landlords or loan providers and is a must for any company that interacts with clients, customers or the public on a regular basis. Without it, your business could face expensive lawsuits that can bankrupt you or prevent you from getting work contracts. In addition, this insurance policy typically includes a per-occurrence limit and an aggregate limit to help you manage your risks. For example, it may include up to $1 million for a single claim.
The workers’ compensation is a form of no-fault insurance that provides financial benefits to employees who are injured on the job. It also helps to prevent employees from filing lawsuits against businesses for injuries.
Most states require that businesses provide workers’ compensation coverage for their employees. It’s important for small business owners to invest in this policy to avoid fines and penalties.
Depending on the state, workers’ comp provides compensation for medical care and partial lost wages, as well as death benefits. It also typically includes a return-to-work program designed to help employees with work-related injuries and illnesses make the transition back to the workplace.
New York employers can save money on workers’ comp premiums by correctly classifying employees and making sure payroll is calculated accurately. Moreover, they can choose to pay a lower upfront premium and then calculate their monthly payments based on actual payroll. This approach can be helpful to seasonal businesses and those that hire many part-time workers. assurance pro