Business Insurance Should Be Simple

Any new entrepreneur considering starting a business needs to look at business insurance. Commercial business insurance covers a broad spectrum of protection that includes your property, you and your employees, and your liability. It’s normal to have questions regarding the type of coverage your business requires. The ultimate goal is to make sure you are never under-insured or exposed in the event of an incident or disaster while not having double coverage or unnecessary insurance.

Business property insurance will cover losses to your building, and the property inside of it. Computers and phone systems, furniture, finished goods, as well as carpeting, lighting fixtures and supplies will be covered. There are two options, either actual cash value, which is purchase price less depreciation, or the replacement cost of the item. Discuss these differences in more detail with your agent to determine what is best in your situation.

Almost all businesses are required to have workers compensation insurance. This covers the employee from lost wages while protecting the business against being sued by the employee. More specific information is available from the insurance department of your state government and your commercial insurance agent.

General business liability insurance must also be in place to protect the business and the owner against lawsuits. A general liability policy will cover most situations that may arise. There are specific types of liability coverage for risks not covered within the general liability policy. An example would be realtor liability insurance which is a separate coverage generally taken out by real estate brokers and agents. Ask your commercial insurance agent what else you should be looking at for specialized coverage.

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General Business Liability Insurance

A common question among business owners looking at insuring their company is; what types of liability aren’t covered by my general business liability insurance policy?

General liability insurance is the most prevalent form of business liability insurance. These policies are designed to protect your business against occurrences where someone alleges they were injured or their property was damaged as a result of your company’s negligence.

Your general liability insurance excludes some types of liability coverage, Workers Compensation, professional liability, liability related to operating an automobile or truck, and corporate directors and officer’s liability. These liabilities are covered by other specially created policies to protect your specific business.

Most general liability policies will also exclude coverage against claims of pollution.  Businesses using toxic materials in the manufacturing process or that store or transport them must purchase a special environmental liability policy. Many businesses keep gasoline on the premises for their own use, but because storage tanks can leak over time, allowing gasoline to seep into wells and other water supplies, federal law requires all tank owners to have insurance or show some other means of paying for potential claims. Also excluded are claims resulting from damage to the property of others in the business owner’s care, custody and control. This is because coverage for such damage is covered under property policies.  Talk about chemicals and usage as well as storage and transportation in detail with your agent or broker.

Any products produced or sold are generally not covered by a general liability policy.  Product Liability insurance is sold as a separate coverage.

The most common exclusion for the typical general liability insurance policy is claims of professional negligence or Errors & Omissions. If damage resulted from serious negligence on the part of a client or an employee, your general liability insurance will not cover the suit.  In this instance, professional liability insurance, also known as Errors & Omissions insurance, will cover a claim of negligence.

Review your liability coverage in detail with your licensed insurance professional.  Take the time to understand what is covered, and most important, what’s not.

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For a quick, free quote, click ‘Get a Quote’ above or call 1-877-907-5267 to speak with one of our specialists to learn more about what your business needs in terms of general business liability coverage.