Types of Insurance for a Small Business

Types of Insurance for a Small Business

If you own a small business, you might be wondering what types of insurance you should have so that you, your employees, and your assets are protected. There are many different types of insurances out there, and it can be overwhelming to know how much protection is too little, and how much is just unnecessary for your particular business. However, there are some basic types of insurance that every kind of small business needs to consider.

General Liability Insurance

No matter how small your business is, you need to have liability insurance because it will protect you with defense and damages if you, your employees, or your products cause or are said to cause harm to anyone.

Worker’s Compensation

If you are employing anyone, it is very important to have worker’s compensation insurance. It will provide insurance to employees who are injured on the job and it provides them with financial replacement and medical benefits instead of allowing the employee to sue you for the incident. Even if you trust your employees and don’t think they would ever get hurt or do anything to hurt you, this is a type of insurance that you need. Things happen you don’t want to get into a lawsuit or a situation of non-compliance.

Professional Liability Insurance

Professional liability insurance is also known as professional indemnity insurance or errors and omissions. You need this type of insurance if your business provides any kind of service or advice. This insurance will protect you against a client who is making a negligence claim.

Property Insurance

This type of insurance is important if you own your own your own business building, but it can also be important if you have any sort of equipment that belongs to your business such as computers or inventory. Property insurance will protect you if your space or business-related property is damaged, stolen, or vandalized.

What is Commercial Liability Insurance?

What is Commercial Liability Insurance?

Commercial Liability Insurance is a type of coverage, which protects businesses in cases where people make claims against them for property damage, bodily injury, and advertising and personal injury to their reputation due to slander and false advertising.

Commercial Liability Insurance coverage is used to pay people that sustain bodily injury or damage to property, which occurs on a company’s premises or due to their business operations.

Product or completed operations coverage is designed to pay for the expenses the business incurs when bodily injury or property damage for which it is responsible occurs away from the primary site of the business but is caused by the company’s products or their completed work.

Why is Commercial Liability Insurance Important in Miami?

Get a quote by contacting All Nation Insurance at 1 (305) 220-0900.

This is particularly important in cities like Miami where hurricanes, floods, and other types of inclement weather may lead to workers or equipment injuring people or causing property damage. For some companies having an additional form of commercial liability insurance called Excess Liability Insurance is also important. This can help to pay for losses which exceed the financial limit of their basic commercial liability policy. Other types of commercial liability insurance include:

  • Umbrella liability insurance
  • Claims-Made Policies
  • Occurrence Policies
  • Prior Acts or “nose” Coverage
  • Run-off or “tail” Coverage

While the coverage provided by these types of commercial liability insurance policies are fairly comprehensive, there are some types of injuries and damages which are not covered or not completely covered. One such example is the Pollution Exclusion. These exclusions state the policy will not cover a third party’s injuries or damages which are caused dispersal, escape, migration, release, or seepage of gaseous, liquid, solid, or thermal pollutants. This includes acid, chemicals, fumes, smoke, vapor, and other types of dangerous waste products.

Do you need Commercial Liability Insurance in Miami, Florida?

Depending on the nature of your business, commercial liability insurance may be required for you to obtain your business license. However, if it is not required, it is definitely recommended. America is a very litigious society. People are quick to bring law suits against companies they feel have wronged them in some way. They see companies as easy targets and have no problem finding attorneys that are willing to litigate their cases if they feel there is a chance the client may collect a significant personal injury or property damage settlement.

While those lawsuits may simply be a ploy by an individual and their attorney to get money, the damage they can do to a company that is not properly insured is sometimes irreparable. History is littered with examples of companies that were not properly insured and had to shutter their doors and go out of business when hit with a lawsuit.

With the influx of immigrants speaking a wide range of languages coming into Miami and South Florida at an all time high, the potential for misunderstandings and accidents on job sites is soaring.

It would be unwise for a growing business not to protect their assets by purchasing commercial liability insurance.

All it takes is one misstep, mistake, or product malfunction to trigger an expensive lawsuit. True, small to medium-sized businesses cannot protect themselves from everything that could potentially happen. In Miami, Florida hurricane force winds and torrential rain can knock over signs, shatter glass, or make the sidewalk outside your business slippery and dangerous and lead to personal injury and property damage lawsuits. Still, the responsible thing for business owners to do is try to find the most comprehensive commercial liability insurance they can afford.

The smart move is to be proactive. Don’t delay taking action and have an unfortunate accident happens then lament the fact your business was not adequately insured. At that point claimants may be looking for ways to hold you personally liable and go after your personal assets. Talk with more experienced business owners you know and respect and ask them about the importance of commercial liability insurance. They may be able to give you some insight about steps you can take to ensure your company is adequately insured.

Having commercial liability insurance is a must for any serious business owner. Don’t leave the survival of your company to chance. Speak with other business owners, scour the internet, listen to and follow up on references from family and friends, and do whatever’s necessary for you to find the right insurance agent or company for your business. Sit down with them and tell them your concerns. Also make them aware of your insurance needs. With a little work you’ll be able to find an insurance agent and a company that can provide you with comprehensive commercial liability insurance at a price you can afford.

Creating and growing your own business is an important part of the American Dream. However, one of the responsibilities of owning and growing your business is making sure your employees, equipment, and other assets are properly insured.

Get a quote by contacting All Nation Insurance at 1 (305) 220-0900.

Looking for Affordable Small Business Insurance?

Looking for Affordable Small Business Insurance?

Some new business owners, in an attempt to minimize expenses, may make the fateful decision to not purchase business insurance. Many see business insurance as a luxury or something that only businesses that have been established for a while can actually afford. And while it is true that there is an expense associated with small business insurance, it is essential for every business regardless of the industry, time in business, or their budget.

The Benefits of Worker’s Compensation Insurance

For any business that has employees, worker’s compensation is a must. Worker’s compensation will cover medical bills and a percentage of lost wages for employees dealing with work related diseases or illnesses. Employers who do not have this type of insurance may have to pay out-of-pocket to cover these expenses. Worker’s compensation provides for different types of benefits:

  • Income Benefits – These benefits will reimburse a portion of an employee’s lost wages.
  • Medical Benefits – These benefits are designed to cover the expense of medical treatment associated with the work related injury or illness.
  • Burial Benefits – These benefits will cover some of the funeral expenses of an employee who died in a work-related incident.
  • Death Benefits – These benefits will pay some of the employee’s lost wages to the family of an employee who was killed while at work.

Commercial Automobile Insurance

According to the Bureau of Labor Statistics, between the years 2003 and 2007 more than 35 percent of work-related fatalities had to do with motor vehicles. Between the same time period, work-related automobile fatalities cost businesses on average $500,000, and each nonfatal injury cost them approximately $74,000. Thankfully, the vast majority of these business owners had commercial automobile insurance.
Any business that uses vehicles in the operation of business needs to have commercial automobile insurance. There is a huge difference between having a vehicle insured for a personal policy and having that same vehicle insured for business use. A vehicle that is only insured for personal use may not be covered if an accident takes place while the vehicle was being used for business.

Protecting Your Business Property with Insurance

As a business owner, you have worked hard to be able to afford the property you own. It is only logical that you should take steps to protect your investment. Business property insurance in many cases will reimburse not only the cost of the property that was damaged or lost, but it will also reimburse the actual loss of earnings for up to 12 months. Coverage is provided to replace things such as computers and other work-related equipment. Certain policies even offer coverage for the money a business spends researching the products they will purchase to replace what was lost. Even individuals who have a home-based business should look into getting this type of insurance.

Protect Yourself with Liability Insurance

We live in a society that is enamored with lawsuits. Even if a business owner feels that the chances of them being sued is little to none, getting liability insurance is still a good idea. Annual premiums for general liability insurance usually run between $750-$2,000 depending on the type of business. That is a small price to pay when compared to the tens of thousands, if not millions, of dollars a business owner may have to spend battling their case out in court.

General liability insurance helps to protect the company’s assets. It will cover certain obligations that a business owner may have, such as the medical costs of a client who gets injured while on the business’s property. It also helps cover the expense of legal defense and any settlement or award paid out if the business owner is successfully sued.

To get a quote or speak to an affordable small business insurance agent, call (305) 220-0900.

Why Do Restaurants Need Restaurant Insurance?

Why Do Restaurants Need Restaurant Insurance?

Restaurant insurance is vital to the success of a restaurant. The possibility of accidents occurring in your business and on the premises are great. To see what I mean, check out these statistics from the U.S. Bureau of Labor Statistics Food Services and Drinking Fatalities, Injuries, and Illnesses report and the injuries, illnesses, and fatalities report.

  • 120 – fatalities in the food services and drinking places industry
  • 69, 950 – incidents involving work place accidents resulting in loss of work
  • 10 – average median days away from work due to injuries
  • 168 – cases per 10,000 full time employees

These statistics are alarming and demonstrate why restaurant insurance is so important. Accidents such as fires, slip and fall incidents and even people who get sick from eating your food can be covered by your insurance.

What is Business Insurance?

All businesses need insurance coverage in order to protect them from potential losses due to slip and fall incidents, fires and so forth. Having restaurant insurance also prevents business owners from losing property completely. Property unlikely to be recovered after a fire, severe weather incident or other unexpected event are personal items, expensive equipment and business vehicles. With the proper restaurant insurance coverage, a claim can be filed to recover losses including any medical expenses occurred by employees and customers.

Having insurance avoids being sued!

When a business owner fails to obtain and maintain business insurance, that person opens him or herself up to being liable for any judgments being settle against him or her and their business. The judgment can garnish wages, bank accounts, and some small businesses may be held personally liable for debts through person assets. As you can see, obtaining the right restaurant insurance coverage can protect your from liability claims.

Types of Business insurance you can obtain

There is more than one type of business insurance available, however several of these may be packaged together into one lump policy. It is up to the business owner and their insurance agent to decide which plan is right for them. Below is a list of some of the different type of insurance available.

Property and Casualty Insurance

Whether you are renting or leasing the physical location of your business, property insurance will cover it when flooding, fire, theft, tornado and or an earthquake occurs. Casualty only covers the operation of the business, which of course is grouped with property insurance.

Commercial Auto Insurance

This insurance type covers your business due to any loss or damage to company vehicles as well as damaged that may have occurred from the company’s vehicle to others.

Liability Insurance

Liability insurance covers you if someone decides to sue you for negligence. A prime example of this would be in a slip and fall incident due to factors within your control or beyond your control.

Business Interruption Insurance

This insurance comes in handy when a business’s normal operations are interrupted and cash flow and profits becomes abnormal. This could be due to severe weather events, for example, if you harvest orange crops and Souther Florida is hit by an unexpected storm that destroys your crops, you may or may not be able to recover your losses.

Health Insurance

Health insurance is needed to cover yourself as well as your employees when in need of medical care.

Life and Disability insurance

Life and Disability insurance will be needed in the event of death or disability of key owners, partner and employees may occur. Read more about Key Man Insurance.

Worker’s Compensation Insurance

If you have employees, it is required by law to participate in the worker’s comp program. This insurance covers employees who are injured on the job.
These insurance plans can be combined but it would be cheaper to find a plan that offers the types of insurance coverage needed instead of purchasing them separately.

Importance of Key Person Insurance

People as a competitive advantage. That’s the motto adopted by many businesses. Business owners are aware how vital employees are to the overall success of their business.
This is especially true for key employees, such as top sales performers, top managers, and other employees with unique skill sets that set them apart from the workforce. These employees drive sales or are senior managers which the company has come to depend upon.

If these key employees were to perish or become disabled, the impact on their family and the business could severely hinder the ability to compete in a free market.

One of the best ways to protect a business from this type of loss is with key person insurance.

Key person insurance is quite simple — the company purchases a life or disability insurance policy on the employee in case of an unfortunate incident. The company pays the premiums and maintains the policy. The company also receives the death or disability payment.

The policy benefit is designed to ease the financial burden on the company. This allows the company time to regroup and find a suitable replacement for either the short term or long term.

Finding a replacement can be a costly endeavor therefore the death benefit provides assistance and time to conduct an adequate search.

If the company didn’t have this financial support, it might feel obligated to hire someone quickly to fill the vacancy, resulting in an unsuitable hire.

In the event a key employee becomes disabled, a disability payment can help keep cash flows positive as everyone awaits the healthy return of the key employee. This is especially true for smaller businesses where the loss of a key employee can be disastrous.

The monthly disability payment can be used for anything from meeting financial obligations to hiring a temporary employee.

Unlike other insurance solutions, key person insurance policies have a very specific focus. They are designed to help protect the interest of the business in the untimely event of a disability or death.

If the success of your small business is dependent upon a key employee or two, then you may want to make sure your business is protected.

You can discuss your specific situation with your financial adviser or insurance specialist.