Business Owner’s Insurance: Keeping It Simple

I am a firm believer in living life by the principle of K.I.S.S.

For the uninitiated, the acronym means “Keep It Simple, Silly.” Well, actually, the second “S” can be any of a lot of things, but we’re keeping this polite.

The idea is, the simpler you make solutions, the less complications you will be met with if those solutions go south.

That being the case, let’s look at business insurance in its simplest forms.

General Liability Insurance:
General liability insurance protects you against damages, injuries, or other risks of liabilities which may be imposed by lawsuits which are sustained at your place of business by a third party.

Workers Compensation Insurance:
Workers Comp insurance is the form of insurance which provides medical benefits and wage replacement to your employees who are injured on the job. Some states also require that businesses provide additional coverage as well. Your licensed insurance professional can help you to determine what coverage is mandatory and what is prudent for you.

Buildings and Property Insurance:
Building insurance is also called commercial building insurance or property and casualty insurance. This coverage which protects financial risks due to damage to or loss of a physical structure that the insured owns or leases. There are some losses which are not automatically covered by this type of insurance. Flood damage, for example, is usually not covered automatically. So if you lived in a flood zone, you would want to work with your licensed insurance professional in order to ensure that your potential flood losses are insured.
Commercial Vehicle Insurance
A commercial auto insurance policy covers business vehicles and their drivers. If your circumstances dictate it, your auto coverage can be combined with property and casualty insurance in your business owner’s policy. It is important to note that it is a fact that many business owners assume a variety of risks by using their cars and assuming a personal auto policy will cover any risk.
There are numerous kinds of additional insurance which are available to business.  Again, it is a fine idea to have a thorough and frank discussion with your licensed business insurance professional in order to make the best decisions about the options which are available for your business.

Explaining Commercial Insurance As Simply As Possible

Insurance can be overwhelming to say the least.  Commercial insurance covers a wide range of issues, coverage options, and exclusions.  Let’s look at trying to keep it simple to look how your commercial insurance works.

How does my business insure:

Property and Buildings

Property and Casualty insurance covers building and property.  As simple as that seems, there are a number of losses that aren’t covered, such as flooding as one example.  Just because your business is in leased space and not owned also does not mean you can go without property and casualty insurance.  Don’t assume homeowner’s insurance will protect a home based or part time home business.

Auto and Truck

A commercial auto insurance policy will cover your business vehicles and their drivers.  Again, while seeming quite simple, many business owners assume a variety of risks by using their cars and assuming a personal auto policy will cover any risk.  Sometimes, the auto coverage can be combined with Property and Casualty in a Business Owner’s Policy.  Check with your commercial insurance broker to determine your needs.

Workers Compensation

Every business must have workers compensation in place to protect them if an employee is injured on the job.  Some states also require additional coverage be provided.  Work with your commercial insurance broker to determine what coverage is mandatory.

Ask your insurance agent/broker about other options available for your business.  There are a great number of coverage options available to protect your business.  Discuss with your agent about what risks your company faces while conducting your day to day business.