Do I need a small business insurance plan?
Imagine your business facing an unexpected risk like fire, theft, natural disaster or employee injury, and all that without having business insurance coverage. The expenses these circumstances may lead to con potentially drive you out of the business for good. So having a business insurance policy is definitely a must for any business no matter how small it is.
Besides, you may be required to have a small business insurance plan by the state law. Some types of business insurance like workers' compensation coverage or property and liability insurance are a must in all of the states, although the amounts of coverage vary from place to place. In some states you should provide a business insurance policy in order to get a business registration.
What if business insurance is too costly for me?
The statistic shows that about 40 percent of small businesses aren't insured at all, because their owners assume that having a small business insurance policy is too costly for their enterprise. Fact is that not having a business insurance may lead to expenses far beyond annual premiums, putting you at risk of losing your business. Natural disasters, theft, employee injuries – this all may lead to unexpected financial losses, which could be entirely covered by business insurance if you have one.
There are different business insurance packages offered by insurers to small business owners who run short on cash. For example, business owner's policies (BOPs) provide the necessary coverage for property and casualty risks at a low price. Another way of reducing business insurance costs is raising your deductible. You'll have to pay more to make a claim but you can be sure you are fully covered when something happens.
Integrity Now Insurance Brokers will help make sure you are purchasing the best available coverage at the lowest price.
What deductibles should I consider?
The majority of business insurance policies carry a minimum deductible of $250 per claim. Higher deductibles will decrease your annual premiums and thus reduce the cost of your business insurance. Consult with your insurance agent or broker about all possible deductibles before making a decision.
What should I do to keep my business insurance expenditures low?
Risk management represents a powerful tool of keeping your business insurance costs under control. By using risk management you determine all the possible risks your business may face and choose whether you want to finance coverage against these risks or not. Large companies use these methods of reducing their expenditures, and your small business could use the same scheme for making sure you don't over or under-buy insurance.
There are four major steps in risk management:
Using risk management methods will actually help reduce the number of claims your business is likely to make. And this will lead to reduction of your insurance coverage rates, which are based on your business' individual claim history. Risk management will also help lower your out-of-pocket expenses for uninsured claims.
How frequently should my business insurance policies be reviewed?
Your small business insurance will have to be reviewed frequently in order to adjust it to your needs. You want to make sure you're getting exactly the coverage you need and do not overpay at the same time. That's why you need to review your business insurance policies at least one a year and make them relevant to your business' insurance needs. You should also consider reviewing your policy whenever an unexpected situation implying business insurance occurs.
Loyalty may not be the smartest thing to follow if your insurer's competitors offer better coverage at an equal or lower price. Sometimes paying a few hundred dollars more can mean obtaining top rated coverage for your company. Don't always look at the price of the policy but rather the amount of coverage you are obtaining. Integrity Now Insurance Brokers will help you make an informed decision. Get a Quote today.
My business is incorporated. Do I need business insurance?
Business structures like incorporation provide protection for the owner's personal assets, but they do not make business insurance needs irrelevant. Incorporation could provide some benefits, but still you can be personally liable in case of a lawsuit. Thus, you risk both your business and your personal assets by not having a business insurance policy.
Do I need workers' compensation business insurance?
If your business has employees, regardless of their number, you are required by California law to carry workers' compensation coverage. Make sure to consult with your insurance provider to make sure you have the correct coverages in place.
What is fire legal coverage?
Fire legal coverage provides coverage to for you if you rent a business space and are held responsible for fire damages to that rented space. It does not apply to all business risks.
What does 80% co-insurance mean in my Commercial Property Insurance policy?
Insurance carriers require that an insured party insure at least 80% of the property's value in order to collect a partial loss in full. This is the way the insurance company encourages all insureds to adequately insure their property in relation to other insureds.
Does my policy cover physical damage to a vehicle I rent?
This damage will be covered only if that type of coverage is purchased.
Can other people drive my business vehicle?
Other people may drive your vehicle with your permission. It is important that they be listed on your policy if they are regular drivers of the vehicle.
How does an audit work?
At the end of the policy term, the insurance company will review the policy and either charge or credit the policyholder based upon an audit of estimated figures. Examples of estimated auditable items include sales and payroll. Audits can be performed onsite by an auditor or via mail or telephone. A premium is charged for audit estimations.
Why do I need certificates of insurance from sub-contractors?
An audit may require you to show proof that sub-contractors had their own insurance coverage. The sub-contractors' certificates of insurance will prevent you from being charged for their exposure in the event of a loss.
What is General Liability?
General Liability provides coverage if you are liable for damages to other individuals arising from your premises, general operations (ongoing and after completion) and products manufactured or sold.
What does Products/Completed Operations mean?
Products/Completed Operations refers to the liability coverage for damages caused by your operation or products after the point at which you no longer have control of them.
What is Business Interruption/Extra Expense coverage?
Business Interruption/Extra Expense coverage provides coverage for income loss and the extra expense of establishing a temporary site during repairs due to damages related to a fire or compensable loss.
What is the difference between "Named Insured", "First Named Insured" and "Additional Insured?"
Named Insureds are those listed by name in the relevant block of the policy's declaration page. Although the named insured is commonly one person, partnership, corporation or other entity with insurable interests, multiple named insureds may be included.
First Named Insured is the first "named insured" listed on the policy declarations (front page of the policy). This insured acts as the legal agent for all named insureds in initiating cancellation, requesting policy changes or accepting any return premiums. The first named insured may also be responsible for payment of the premiums.
Additional Insured is an entity to which a policy's coverage is extended. An additional insured must be added to the policy prior to a claim being paid. There must be a tied to relationship between the additional insured and named insured. Being an additional insured on another's policy does not eliminate the need for someone to have his/her own Commercial General Liability policy.