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| Business Insurance Needs |
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| Having the right business insurance coverage in place helps assure that a business can continue operating effectively should it suffer a serious loss. The exposures faced by the average small business include threats to property, exposure to lawsuit, injury to employees, operation of company vehicles, and liability for workproduct. Effective protection means having the right policies in place to cover the operations of your specific business. The basic coverages necessary to protect most businesses include:
Business Owner's Policy (BOP): This is a package policy that covers major property and liability exposures in addition to loss of income if your business is unable to operate for a period of time after a loss. Generally, property coverage includes owned/leased buildings; building contents including furniture, supplies, fixtures, machinery, equipment, inventory, and building improvements. Liability insurance provides coverage in the event the business is sued for causing injury to others. It covers damages and settlements made as a result of the lawsuit, and usually the attorney?s fees incurred to defend against a suit. Workers' Compensation: Workers' compensation insurance pays for medical care and rehabilitation for employees who are injured on the job or contract a work-related illness. In addition, employee?s lost wages, disability benefits and death benefits for dependents of employees killed in work-related accidents are also covered. Because workers? compensation is a no-fault system employees do not have to sue their employers to receive compensation, which is automatic for covered benefits. In addition, employers are protected from liability due to work-related injuries and illnesses. Employees unable to work for a period of time because of injury are paid a portion of lost wages. The insurer also pays to train the employee for another job if he/she cannot return to work because of a permanent injury. Should an employee die because of the injury the insurer will pay death benefits to the worker?s dependents. Commercial Automobile Insurance: This insurance provides coverage for company-owned cars, trucks, buses and other vehicles in the event of an accident that causes bodily injury or physical damage. Coverage can usually be extended to provide non-owned and hired auto liability, covering vehicles rented or borrowed by your employees. Umbrella Liability Insurance: Umbrella insurance provides coverage above the limits of the primary liability insurance policies. The coverage is considered excess of the general liability and automobile liability policies, and begins coverage after the policy limits of the primary policy have been reached. If you have general liability limits of $1 million plus a $2 million umbrella liability policy, you have coverage sufficient to pay a $3 million liability claim. Professional Liability: Liability coverage is specialized for each profession, e.g. lawyers, accountants, bankers, consultants, etc. The policy protects the firm for damages arising from the firm?s profession for acts, errors or omissions when performing these services for another party. The coverage is not designed to cover general liability or workers? compensation, or employees not considered to be practicing the profession of the firm. Employment Practices Liability Insurance (EPLI): EPLI provides coverage for an entity, the directors and officers of the entity, and the individual employees, for claims brought by past employees, present employees or prospective employees who allege employment discrimination, wrongful termination, or sexual harassment. Group Health: A Group Health policy covers the entire employee group under a master policy issued to the employer for the benefit of the employees. Employees are usually able to enroll for the coverage without a medical examination. Benefits can vary significantly by plan but usually include coverage for medical and surgical expenses, physician visits, hospital stays, and possibly prescription drug coverage. Benefits are delivered through an HMO, PPO, or comprehensive plan. Employee Voluntary Worksite Insurances: Premium voluntary benefits available. Add these benefits to your employee?s benefit package as options, at no hard cost to your organization. Benefit options include low cost Short Term Off-Site Disability, Hospital Indemnity Plans, and Dental Packages. All companies and their employees are eligible to participate, as well as 1099 self-employed companies. Pre-Paid Legal Business Owners Plan: This plan is structured for businesses to access specialized legal advice and service from a nation wide network of quality attorneys. Benefits include legal consultation, debt collection letters, contract and document reviews, discounted contingency fees and other valuable legal benefits for businesses. Additional coverages or services purchased by small businesses depending on the type of organization and/or the exposures of specific operations include: Surety Bonds: Unlike insurance policies, surety bonds are agreements between three parties: the surety company or issuer of the bond; the buyer of the bond; the entity covered by the bond. The surety company guarantees that the buyer of the bond will fulfill a specific obligation made to a third party. An example is a performance bond purchased by a contractor. The bond guarantees that the contractor will perform in compliance with the terms and conditions of a construction contract. This provides assurance to the project owner that the work will be completed even in the event of the default of the contractor. Partnership Liability: This specialty coverage protects the partnership managers of a general partnership against lawsuits from third parties. The policy provides reimbursement for indemnification of partnership managers for any judgments, settlements, and defense costs arising from covered wrongful acts. Directors & Officers Liability: D&O covers the directors and officers of corporations for alleged or actual breach of duty, neglect, error, misstatement, misleading statement, omission or act. Access to specialist law firms is provided, which facilitates effective litigation and defense cost management. Long Term Care: Long Term Care insurance provides coverage for costs associated with nursing home or in-home specialized care. Programs typically provide a number of daily benefit options ranging from $50 to $300. Extended coverage options include "non-confinement" care in the home or adult day care centers, and inflation protection. Benefits are limited by either a maximum lifetime dollar amount, or a maximum number of years for which benefits will be paid. Premium Finance: Premium financing is available at competitive rates for one policy or combine several policies into one bill. Conserve cash flow by converting any annual premium into a schedule of monthly payments. All commercial policies are eligible. |
