Business Interruption Insurance Explained

Business interruption insurance covers your actual business from the loss or damage to your income due to a covered loss at your business. Business interruption insurance is best explained with an example.

Mary and Bob have an ice cream shop in a leased space downtown. The income is generated through take out treats as well as some sit-down business at their location. They have several freezers for storage and service, a storage area for paper goods, restrooms, and small retail area for their customers. The shop averages $700 a day and monthly is about $21,000 in revenue. The shop nets about $1500 a month not including salaries paid to both Mary and Bob.

A fire in the building destroys the shop. A commercial insurance claim is submitted to the property insurance. However, to maintain the space, utilities need to be paid, equipment loans paid, minimum orders are required by several vendors to maintain the business.

A contractor is hired, and new freezers and equipment ordered. Still, it will take 6 weeks or more to get up and running. No revenue is being generated, which also means Mary and Bob have no income. This is a tough scenario for Mary and Bob.

However, their commercial insurance professional added Business Interruption insurance to their coverage. This insurance will cover the loss due to time, quantity and other values.

Mary and Bob submit a claim based on actual business records of losing $31,500 in revenue and profits of $2250. Now, the shop has this covered as well as the property insurance claim, allowing them to get through to re-opening the business.

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Ask you licensed insurance professional if business interruption insurance is appropriate for your business. Many businesses are forced to close for good by not preparing for the down time and revenue loss.

Understanding General Business Liability Insurance

In today’s world, a spilled cup of coffee can result in a lawsuit.

As a business owner, you need to be keenly aware that a minor incident could result in a big legal problem. General liability insurance, property insurance, and workers compensation insurance are a must to be in business. Your liability insurance will protect the assets of your business in the event that it is sued for something it was perceived — rightly or wrongly — to have done to injure or cause damage.

General liability coverage can be purchased as part of a business owner’s policy or separately. A business owner’s policy will package the liability with the property insurance. Normally, when part of a business owner’s policy, the liability limits are fairly low.

You should review and assess risk with your licensed insurance professional.

Things to keep in mind are your perceived risk, like operating a lot of heavy machinery or have a fleet of vehicles on the road than say a consultant. Ask your insurance professional for guidance regarding damage awards in your state as well.

Your general liability coverage will include legal fees and damages in a covered claim and/or lawsuit. Bodily injury, property damage, personal injury, and general damages are normally covered. Punitive damages are usually not covered as they are awarded when it is determined the act was intentional.

In addition, your policy will spell out maximum coverage and limits during the policy period.  It may make sense to purchase a commercial umbrella policy to cover additional risk. Review the limits and work with your licensed commercial insurance agent to determine what is best for your business.

Business Renters Insurance

More About Office Insurance

Many businesses lease space in an office building or retail building.  A business renters insurance policy will cover the general space as well as the contents and products used on that site for your business.

Business renters insurance will also offer coverage for accidents and other business liability.

Business renters insurance, much like a personal renters policy, covers the property of the insured, in this case, the business owner.  Contents, such as office equipment, furniture, supplies, products, materials, and the like are covered in the event of a loss due to fire, theft, and other coverage specifically chosen.

Business renters insurance will also cover general liability. It will provide protection against lawsuits, injured parties on your premise, and may cover product liability claims.

Be sure to discuss the particular risk and liability coverage needed with your licensed insurance professional.

While opting for a business renters insurance policy might make sense for your business, it is important to know what isn’t covered. Typically, a business renters insurance policy won’t cover floods & earthquakes.

These types of losses need to be separately insured under different policies. It is important to review these types of insurance and the risk involved specifically for your business with your agent. It is also important to review your liability coverage and limits. It may make sense to purchase a commercial umbrella policy depending again on the risk exposure.

Depending on your business, a business renters insurance policy may be a good starting point to protect your business.

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Office Insurance

Recently, a frantic call was taken from a woman who was starting a medical billing business and had signed a lease for a small office. A friend, who happened to own a courier business, had shared information about her insurance premium costs with our frantic friend, and she wanted to know why office insurance was so expensive.

After calming down, she and the insurance professional discussed the business renters insurance options available to the new entrepreneur.

The first fact discussed was that every business is going to have different needs, risk, and exposure. Her friend with the courier service had a number of employees and company vehicles, so naturally her coverage would be different then a single owner start up company.

Every business needs a combination of liability insurance, business property insurance, and workers or employee insurance. The discussion included business owner’s policies insurance coverage, commercial umbrella policy, boiler and machinery or equipment breakdown coverage, commercial vehicle insurance, Professional and many different options.

As you read this, much like the no longer frantic caller, you’re probably recognizing there are many options available to business owners.

Working with your licensed insurance professional, let them guide you through the coverage options available to you now, and as your business grows.

Make sure you are totally honest with your agent regarding the assets of your business, how much travel will be involved from driving to flying, and a review of any lease you be considering. Together, you will create an commercial insurance package that works for you.

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Home Office Insurance

Working from home can be a great way to supplement your income or start a new business, but make sure you get the proper home office insurance or work at home insurance.

A home office has many benefits; you can reduce spending on gas and commute times, you have the flexibility to be home for kids and the family, not to mention the chance to start a new business venture with little overhead.

You need to be clear in your definition of what type of business you’re starting, however, and like any other business, it needs to be insured properly, with home business or home office insurance.

Many people that have a home office and/or work out of their homes make the unfortunate assumption that their homeowner’s or renter’s policy will cover any losses. Those policies don’t cover business risks. Personal auto policies generally do not cover your auto when being used primarily for business purposes, either; a commercial auto policy is necessary for that.

In addition, many policies have exclusion provisions for ‘illegal’ acts which could include business being conducted in a residential area, so it is important to check your town’s specific ordinances and business permitting standards before you start engaging in business in your home office.

If you are just starting out running a business from your home, it is important to meet and review with your licensed commercial insurance agent how your business operates and conducts business. That way, together you can determine the right coverage for your home based business.

Normally, there will be a liability and property policies needed as well as worker’s compensation. Often, your insurance agent can combine the liability and property coverage into a business owner’s policy.

Do not risk your home and assets by not having the proper home office insurance. If you have a business, you have risk.

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Talk to your licensed insurance professional and learn what is needed to protect your business, no matter how small or large. Call us today at 1-877-907-5267 to speak with one of our specialists about home office insurance today.

Employee Benefits VS. Employee Insurance

The responsibility of providing insurance for employees can be a daunting one, and understanding the differences between Employee Benefits and Employee Insurance, or Workers Compensation is important.

Employee benefits are not the same as Employee Insurance or Workers Compensation–here are a few key differences:

Employee Benefits generally start with health insurance and group term life insurance. As part of the health insurance package, an employer may opt to provide both vision and dental insurance.

In addition, an employer may also opt to offer group disability insurance.

A retirement plan is generally offered as an employee benefit as well. Unlike Workers Compensation insurance, which provides for medical care in the case of employee injury on the job and can protect you from additional legal costs, and is legally required by all states, an Employee Benefits package is provided at the discretion of the employer.

Generally, employers provide these additional benefits to just the employee. However, the employer may also cover the family of the employees as well.

Cost is almost always the determining factor in putting together an employee benefits package. With the rising trend in the cost of health insurance, it is reasonable to ask employees to pay a percentage of the coverage, and perhaps even all of the family coverage. It is not only reasonable, but it is frequently practiced.

As your business grows, an employee benefits package may be necessary to attract and retain good employees. Working with your licensed insurance professional to develop and implement an employee benefits package that makes sense for your business can be an important step in your company’s growth.

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Click ‘Get a Quote’ above to  get in contact with an insurance professional about your Employee Benefits or Workers Compensation needs, or call 1-877-907-5267 to speak with one of our specialists.

Insurance for Chiropractors

A common concern when office managers are searching out options for insurance for chiropractors is the need to cut costs; they believe premiums are too high and that much of the coverage suggested by agents when seeking out insurance for chiropractors is unnecessary.

Inquiries from office managers of chiropractic practices often involve price shopping; they believe the monthly insurance premium is the place to trim the budget.

A competent and patient insurance professional will take the time to help anyone seeking coverage understand the necessity of what’s being suggested; very often, simple misunderstandings or misconceptions about risk and obligations lead to a mistaken belief that certain insurance coverages are unnecessary.

There is no one-size-fits-all, standardized package for ‘Chiropractors’ Insurance.’ Instead, like all businesses, they have a blend of General Liability and Property insurance coverage to protect their operations.

One common misconception about Property insurance is that if the office space is leased, the owner of the building assumes all liability–chiropractors and office managers may not realize that they may be responsible for office equipment.

A careful read through of your lease may help you fully understand your Property insurance needs…they may be different from what you think they are.

It’s also not unusual to labor under the belief that malpractice insurance covers the chiropractor and staff in the event of any patient injury, and think that a Business Liability policy is a duplication of coverage.

Malpractice Insurance would protect the doctor and staff against a claim of injury from treatment, but not from a patient getting hurt from falling down in the lobby.

Review your insurance for chiropractors coverage annually with a licensed commercial insurance agent. Make sure the insurance agent/broker is experienced in commercial business insurance and can answer all of your questions and concerns.

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Click ‘Get a Quote’ to start your quick, free quote for insurance for chiropractors, or call us at 1-877-907-5267 to speak with a specialist about your practice and its risks.

Insuring a Start Up? Consider Insurance Risks

As a new business owner, you may be wondering what type of risks you face, and what type of commercial insurance you’ll need for your start up or new venture.

Frankly, what many budding entrepreneurs are really thinking is, “Why do I even need business insurance for a start up company? I mean, we’re beginners…how risky could it be?”

What follows is a list of real scenarios documented with insurance companies across the country.  As you read through these situations, the details may be enough to convince you of the wisdom of preparing for worst case scenarios.

* One of your employees is interviewed by a publication without your knowledge. In the interview, your employee refers to a competitor as, “A sleaze ball who gouges his customers every chance he gets.” That competitor immediately sues you and your business.

* You walk into your office the day after your grand opening and discover the back door wide open–all your computers and phones are gone.

* Your old toaster oven causes a fire that burns down not just your newly leased office, but the entire building.

* You meet prospective clients for lunch. One of them has to leave and you volunteer to give the other a ride home.  Driving back to their office, you run a stop sign and get hit by another commercial vehicle. Everyone involved is seriously injured.

* A customer walks into your store, slips on a newly mopped floor and breaks his ankle.

* A month into your retail shop being opened, vendors start calling demanding payment on bad checks. You discover your bookkeeper made deposits to her account and has now disappeared.

Your risks begin the minute you start a business, no matter how small. It could be argued that you’re making an important investment in your business by preparing for your future success by insuring for the risks you want to have, once your growth gets underway.

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Getting business insurance in place must always be a priority for a new venture, and our business is helping you protect your business. Click ‘Get a Quote’ above to get a quick, free quote started, or call 1-877-907-5267 to speak with one of our specialists.

Commercial Auto Insurance: Fleet Insurance

Commercial Auto insurance should not be neglected if you own a business that utilizes vehicles; it’s one of the most important coverages you can have.

commercial insurance quote  is quick and easy, but to certain you’re getting all the necessary coverage, make sure to give your insurance specialist the full story when it comes to the question of who is driving company vehicles.  Uninsured Motorist protection is important, and comprehensive coverage is a good idea even if you have a policy that prohibits non-employed personnel in the vehicle.  Accidents happen and you need to be protected–if it’s not covered in your insurance, you’re not covered in case of a mishap.

How many vehicles should you insure for your business?

Commercial auto insurance companies often separate coverages based on type and number of vehicles in your fleet.  It is wise to insure every vehicle; you never know when you might need the coverage and often, you can get a discount for Fleet Insurance, or Commercial Auto insurance that covers all of your company vehicles.

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Call us today at  1-877-907-5267 to speak with an insurance professional about your options for Commercial Auto insurance, and whether you would benefit from Fleet Insurance.



Business Owner’s Insurance Policy

A Business Owner’s Policy–also known as a BOP–is an insurance package that combines Commercial Property insurance and General Liability coverages into one policy.  It can also come with other endorsements for small and medium size businesses that fit certain risk classes.  (Some of the factors that go into determining eligibility include annual sales and number of employees.  Commercial Property insurance covers physical assets and General Liability addresses your commercial liability for injuries and damages to a third party).

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Get a quick, free quote for a Business Owner’s Policy by calling 1-877-907-5267 and speaking with one of our insurance specialists or by clicking ‘Get a Quote’ above..