Mom & Pop Retail Stores, Wholesale Operations, Service
Industry and Office Risks. EXAMPLE: Paint & Wallpaper Stores, Hardware
Stores, Bakeries, Auto Parts & Supplies, Shoe Stores, Household
Appliance Stores, Camera Stores, Florists, Distributors, Laundry-Dry
Cleaning Stores, Dental Offices, Doctors Offices, Accountant Offices,
Insurance Agents Office, Real Estate Offices and more... Please complete
the Business Owner Worksheet
As an owner or potential owner of a business, you have many important
decisions to make about your operations, and insuring
your business and protecting your assets is one of the most crucial.
According to the Independent Insurance Agents of America, no matter
how large or small your business, you face liability, which means that
your business could be held accountable when someone else suffers an
injury or damage to their property because of something your business did
or did not do.
General Liability Coverage includes:
* Bodily injury - includes sickness,
disease or death sustained by a person or persons.
* Property damage - includes physical
damage to someone else's property and loss-of-use of the damaged property.
* Personal injury or advertising injury -
personal injury refers to harm to another person's or business's
reputation or basic right to privacy. Advertising injury refers to harm
caused by an advertisement, such as an ad slandering a competitor.
* Products and completed operations injury
- product coverage is extended to any harm that a business's reputation
might cause, including injury arising from "complicated
operations" such as repair work or electrical installations.
You will need to carefully consider the limits
that are sufficient to cover the type of work you are doing, the product
you are selling and the amount of interaction you have with the public.
Remember, no two businesses are alike. We can help you design an
insurance program specifically tailored to meet your needs, and protect
your business from the many risks you face in your daily operations.
No business can afford to be unprepared for a lawsuit.
Liability insurance protects your business assets when the business is
sued for something the business did (or failed to do) that 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 business owners 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 business owners policy, will
cover bodily injury, property damage, personal injury or advertising
injury. The medical expenses of a person (other than an employee) injured
at the business or as a direct result of the operations of the business
are also covered.
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.
We recommend you take the time to review your policy coverages as your
company grows with your agent or broker. It's also important to shop your
insurance premium and coverages to see if you have the best available...
Looking for methods to lower your insurance premiums?
An insurance company bases insurance premiums on the risks involved. To
do this, they evaluate the situation to determine the risks, or potential
for losses and determines its rates on the results.
The steps you take today to lower your risks can not only help
safeguard your business but may make you eligible for lower insurance
rates. According to the Independent Insurance Agents of America, business
owners should consider these steps:
* Maintain adequate lighting throughout your business premises.
* Keep electrical wiring, stairways, carpeting, flooring, elevators and
escalators in good repair.
* Install a sprinkler system, smoke and fire alarms and adequate
security devices.
* Keep only a small amount of cash in the cash register.
* Keep good records of inventory, accounts receivable and equipment
purchases.
* Consider keeping a second set of records off-site, such as with your
accountant, insurance agent or at home.
* Make sure your employees have good driving records.
* Make sure your employees know how to lift properly and use all
necessary safety equipment, such as goggles, gloves and respirators.
You should consider using the services of a risk manager. An 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.
You may also want to raise your deductible where appropriate to lower
your premiums. How high to raise the deductible should be governed by how
much you can afford to pay out of pocket. Be careful not to raise it so
high that you cannot cover it should a loss occur.
We recommend you take the time to review your policy coverages as your
company grows with your agent or broker. It's also important to shop your
insurance premium and coverages to see if you have the best available...
Have you ever wondered what the coinsurance clause on your
policy means?
According to the independent Insurance Agents of America, most business
policies include a "coinsurance" clause, determining what
percentage of the value of your property must be insured in order to be
fully reimbursed for a loss.
If you insure your business for less than that amount your insurance
company imposes a "coinsurance penalty" once a claim is filed.
Here's how it works:
Let's say you have a building that you believe would cost $100,000 to
replace and a coinsurance penalty in your policy of 80 percent. You insure
the building for $80,000 thinking you have fulfilled the coinsurance
clause. A fire loss causes $60,000 worth of damage so you submit a claim.
Your insurance company subsequently determines that the replacement cost
of the building is actually $150,000.
To determine how much to pay on the claim, the insurer divides the
amount of insurance you purchased ($80,000) by the amount you should have
purchased (80% of $150,000 or $120,000). The result (two-thirds, or
$40,000) is the amount of your claim the insurer will pay.
If the building had been insured for atleast $120,000, the insurer
would have reimbursed you for the full amount of the loss. Coinsurance can
be tricky and cost you a ton of money if you under insure your property.
We recommend you take the time to review your policy coverages as your
policy with your agent or broker. It's also important to shop your
insurance premium and coverages to see if you have the best available...
Some business owners learn the hard way that they didn't buy
enough coverage. Remembering to consider certain pieces of your business
property when purchasing an insurance policy is vital to keeping your
doors open.
Your business may not possess all the following types of property, but
you can use this quick reference list to make sure you have thought of all
property categories and any insurance coverage that may be warranted for
your business:
* Buildings and other structures (owned or leased).
* Furniture, equipment and supplies
* Money and securities
* Accounts receivable records
* Improvements and betterments you made to the premise
* Boilers and machinery
* 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, trademark, etc)
* Leased equipment
While some of these items are covered in your basic policy, others may
be added by an endorsement, or a rider. In addition, some, like money and
securities, may not be covered by a standard commercial policy and may
require a second, separate policy.
We recommend you take the time to review your policy coverages as your
company grows with your agent or broker. It's also important to shop your
insurance premium and coverages to see if you have the best available...
Insurance companies pay more that $150 billion every year due
to accidents or disasters.
Because a loss is hard enough on business owners's wallets, knowing
what to do when you have a claim can help you get the best value for your
insurance dollar. Some tips include:
* Phone your agent as soon as possible. Ask how to proceed and what
forms or documents will be needed to support your claim.
* Prepare a list of lost or damaged articles. Include the brand names
and model numbers of appliances and electronic equipment. If possible,
take photographs of the damage.
* Be sure to keep copies of lists and other documents you submit to
your insurance company. Also keep copies of whatever paperwork your agent
provides you.
* If your property was destroys or you no longer have any records, you
will have to work from memory. Try to picture the contents of every room
and then write a description of what was there. Try also to remember were
and when you bought each piece and about how much you paid.
* Make temporary repairs and take other steps to protect your property
from further damage. Save receipts for what you spent and submit them to
you insurance company for reimbursement.
* Avoid using electrical equipment, including computers, stereos and
other exposed appliances that have been exposed to water unless they have
been checked by a technician. Most insurance companies pay for such
inspections.
* Supply the information your insurer needs. Your insurer will
represent you if a claim is brought against your or your business. We
recommend you take the time to review your policy coverages as your
company grows with your agent or broker. It's also important to shop your
insurance premium and coverages to see if you have the best available...
