Insurance World

Business Insurance

    What’s business insurance?

   At its core, business insurance is a way to protect your business and its assets from unexpected events and risks. It’s a smart and responsible decision for any entrepreneur or business owner, whether you’re just starting out or have been in the game for years.

   By investing in business insurance, you can ensure that you're compliant with any legal requirements and avoid potential penalties or fines.   

  Who might need business insurance?  

   If you own a business, you should consider investing in business insurance to protect your assets, reputation, and financial stability. 

   Small Business Owners:

   Whether you run a home-based business or a small storefront, business insurance can provide protection from risks like property damage, liability claims, and more. Small business owners may also benefit from specialized coverages like cyber liability insurance, which can help protect against data breaches and cyberattacks. 

   Medium to Large-sized Businesses:

   As businesses grow, so do their risks. Medium to large-sized businesses may require more complex insurance solutions to protect against risks like employee injury, property damage, and more. These businesses may benefit from coverages like commercial property insurance, commercial auto insurance, and workers' compensation insurance.

   Professionals:

  Our Professional Liability Insurance service is designed to provide you with comprehensive coverage for your professional services, including protection against claims of negligence, errors, or omissions.

   Non-profit Organizations:

  Non-profit organizations may face unique risks related to their operations and the populations they serve. Business insurance can provide protection against risks like liability claims, property damage, and more, helping non-profits continue to serve their communities without interruption.

   What type of business insurance do I need?

   The type of business insurance you need depends on several factors, including the nature of your business, the size of your business, and the specific risks you face.

   Do I need insurance if I'm a sole proprietor?

   While not required by law, business insurance is still important for sole proprietors. It can provide protection against liability claims and other risks that could be financially devastating for your business.

   How much does business insurance cost?

   The cost of business insurance varies depending on the type and amount of coverage you need, as well as the specific risks associated with your business. It’s important to work with an experienced insurance agent who can help you find the right coverage at a price that fits your budget.

   How do I know if my business has the right insurance coverage?

   It’s important to work with an experienced insurance agent who can help you assess your business’s insurance needs and determine the types and amount of coverage that are most important for your specific situation.

   What is the difference between general liability and professional liability insurance?

   General liability insurance provides protection against claims of bodily injury, property damage, and other types of third-party liability, while professional liability insurance provides protection against claims of professional negligence or mistakes that result in financial loss for a client or customer.

   General Liability Insurance:

   This type of insurance provides protection against claims of bodily injury, property damage, and other types of third-party liability. General liability insurance is often essential for businesses that have physical locations or interact with customers or clients.

   General liability insurance (GL), often referred to as business liability insurance, is coverage that can protect you from a variety of claims including bodily injury, property damage, personal injury and others that can arise from your business operations. GL insures against liability arising from premises, general operations (ongoing and after completion), and products manufactured or sold. Commercial general liability insurance coverage protects business owners, businesses, and their employees from claims involving bodily injury or property damage, up to the limits of the policy. Policies shield business owners from the expense of out-of-court settlements, litigation and judgments awarded by courts.

   Professional Liability Insurance:

   This type of insurance, also known as errors and omissions insurance, provides protection against claims of professional negligence or mistakes that result in financial loss for a client or customer. Professional liability insurance is typically necessary for businesses that provide professional services, such as lawyers, doctors, or consultants.

   Professional Liability covers liability from rendering or failure to render professional services. Standard forms exist for Physicians, Surgeons and Dentists (PS&D), Hospitals, Lawyer. Other professions can be covered under nonstandard forms, including architects, engineers, accountants, insurance agents, real estate brokers, etc.

   What is cyber liability insurance?

   Cyber liability insurance provides protection against cyber threats such as data breaches, hacking, and other cyberattacks that can result in financial losses, reputational damage, and legal liabilities.

   Do I need worker's compensation insurance?

   In most states, workers’ compensation insurance is required for businesses that have employees. This type of insurance provides coverage for employees who are injured or become ill as a result of their work.

   Florida law requires Workers’ Compensation to be regulated by the Division of Workers’ Compensation of the Department of Financial Services, but employers are responsible for payment through insurance or self-insurance. In Workers’ Compensation employees are compensated for occupationally incurred injuries, regardless of fault, in return for which employers are immunized from injury lawsuits by employees.

   By law, an employer is every person carrying on “employment”. They include the state and political subdivisions, public and quasi-public corporations, employee agencies and employee leasing companies.

   Worker’s compensation coverage is a state-mandated insurance program that covers lost wages and medical treatment resulting from an employee's work-related injury or illness. It also covers services needed to help an employee recover and return to work.

   Failure to carry Workers’ Compensation Insurance is a 3rd degree felony. Stop work orders may be issued. Penalties may be as much as twice what the employer would have paid in premiums for the previous 2 years up to $1,000.

   If an employee has a claim in this case, the employee may claim statutory benefits or file a common law suit. If the suit is selected, the employer may not plead normal defenses for injury cases.

   Premiums are charged on the entire payroll of the employer. Workers' compensation insurance premiums are calculated according to how employees are classified (with regards to the specific type of work they perform) and the rate assigned to each employee classification. The premium rate itself is expressed as dollars and cents per $100 dollars of payroll for each class code.

   Commercial Property Insurance:

   This type of insurance provides protection for your business’s physical property, such as buildings, equipment, and inventory, against damage or loss due to fire, theft, or other covered events.

   Commercial Property covers direct and indirect losses to properties other than 1-4 family dwellings and farm properties. Commercial Property is first party coverage against economic loss from damage to tangible property. It is an insurance policy for businesses and other organizations that insures against damage to their buildings and contents due to a covered cause of loss, such as a fire. The policy may also cover loss of income or increase in expenses that results from the property damage (PD).

   Builders Risk Coverage Form:

  Like Building and Personal Property form, covers buildings while being constructed. Covers structures being built from foundation up plus all fixtures, machinery, equipment and materials and supplies for construction. Coverage terminates with the policy, acceptance by purchaser, termination of the insured’s interest, abandonment, building is complete 90 days after construction, 60 days after any occupancy, or building is put to its intended use.

   Business Income Coverage Forms:

   Two forms that cover loss of business income resulting from damage to a covered property are Business Income with Extra Expense and Business Income without Extra Expense, the difference being how extra expenses to avoid suspension of business affect the total amount of the loss. Business Income means the Net Income and Continuing Normal Operating Expenses including payroll. Extra Expense means the necessary expenses that you incur during the period of restoration that you would not have incurred if there had not been direct physical loss or damage to your property.

   Farm Coverage:

  Farm coverage is a special case that includes personal and business coverage. It includes both property and liability. Farm liability covers both personal and business exposure and is sometimes combined with Farm Property coverage to build a complete package.

    Flood Coverage:

   The primary provider of Flood Insurance in the United States is the Federal Government through the National Flood Insurance Program (NFIP). Some private carriers will provide this insurance, but it will be backed by the NFIP.

   Employment Practices Liability Insurance:

  This type of insurance provides protection against claims of wrongful termination, discrimination, harassment, and other types of employment-related claims.

     Directors and Officers Liability Insurance:

   This type of insurance provides protection for the directors and officers of your business against claims related to their actions or decisions on behalf of the business.

   Excess Liability and Umbrella Insurance:

   Excess and Umbrella Policies are designed to supplement coverage that is inadequate for needs of the insured. Both policies are added to and excess to the underlying coverage.

   Umbrellas operate similar to stand-alone policies, but may provide coverages not covered in the underlying policy that are subject to underwriting. Also like the stand-alone, the adjuster must carefully review the provisions of the policy. The umbrella policy will respond as a stand-alone policy unless the claim involves coverage not in the underlying policy, in which cast the umbrella becomes primary for those coverages. Umbrella insurance is meant to help protect you from large and potentially devastating liability claims or judgments. Personal umbrella coverage comes into play when your underlying liability limits (such as from a homeowners or auto insurance policy) have been reached.

   A Personal Umbrella Liability policy is a form of excess liability that acts as a "second line of defense" to policyholders if they are sued in excess of their base or underlying policy limits. The umbrella liability will also cover certain additional perils which may not be included in personal liability forms such as libel, slander, defamation of character or invasion of rights or privacy, false arrest, liability assumed under some contracts and liability incurred as the result of volunteer work in a non-profit organization.

   Can I bundle different types of insurances together?

  Yes, many insurance companies offer package policies that bundle different types of coverage together. This can be a cost-effective way to get the protection your business needs.

   We understand that business insurance can be complex and overwhelming. Our experienced agents are here to answer your questions and help you find the right insurance coverage for your business. Contact us today to learn more about how we can help protect your business and its future.

   Commercial Package Policies combine or “package” individual lines into a single contract. This allows the insured to have a single contract that reduces the chance of a gap in coverage. The insured benefits from expense reduction and more likely avoidance of adverse risk. Standard packages do NOT include: aviation, surety, health, ocean marine, or workers’ compensation. These policies are written separately. The two standard package policy forms are commercial package policy and business owners’ policy.

   Commercial Package Policy:

  Coverages are the same as when written separately. Commercial Package Policies may combine two or more of the following coverages:

• Commercial Property.

• Commercial General Liability.

• Liquor Liability.

• Pollution Liability.

• Professional Liability.

• Employment-Related Practices Liability.

• Commercial Crime/Employee Dishonesty.

• Commercial Inland Marine.

• Boiler and Machinery.

• Commercial Auto (including Business Auto, Garage and Truckers insurance).

• Farm (includes Property and Liability).

   Business Owners Policy:

  The Business Policy (BP) is similar to the Homeowners Policy. The difference between the CPP and the BP is that the CPP coverages are elective and the BP is basically a required package of coverages to meet the needs of certain business classes. It includes:

• Apartment houses and residential condominium association buildings with various permitted incidental occupancies.

• Offices and office condo associations with certain restrictions on size of building and occupancy.

• Mercantile, wholesaler, servicing or processing risks with certain restrictions on size of building and gross sales.

• “Trade” contractors with a single specialty with certain restrictions on size of premises and gross sales.

• “Limited cooking” and fast-food restaurants with restrictions on size, seating capacity, type of food & drinks, methods of serving and methods of cooking. “Limited cooking” preparation does not emit enough smoke or grease vapors to require an exhaust system or dry chemical extinguishing systems.

• Convenience food stores, including those distributing gasoline or eligible restaurants. No more than 75% of annual gross sales in gasoline, no auto repair or service, no car wash, no propane or kerosene tank filling.

• Self-storage facilities with certain facility restrictions. No cold storage, industrial materials, chemicals, pollutants or waste.

   Marine Insurance:

   When written as part of the Commercial Package Policy, the Commercial Inland Marine requires three additional items along with the Common Policy Declarations and the Common Policy Conditions. Marine Insurance requires a Commercial Inland Marine Declarations Form, a Commercial Inland Marine General Conditions Form, and one or more of the following Controlled Coverage Forms: Account Receivable, Camera and Musical Instruments Dealers, Commercial Articles, Equipment Dealers, Film, Floor Plan, Jewelers Block, Mail Coverage, Physicians and Surgeon Equipment, Signs, Theatrical Property, and Valuable Papers and Records.

   Inland Marine Insurance:

   Inland Marine is an extension of Ocean Marine to cover cargo travelling overland. It covers property while in transit or subject to transit, land mobile equipment (not licensed highway equipment), and instrumentalities of transportation and communication such as bridges, tunnels, radio, TV towers, aerial navigation beacons / beacons, dams, piers and docks, pipelines, and power transmission lines.

   Ocean Marine Insurance:

   Ocean Marine Insurance (also known as “wet marine”) covers perils associated with water transport. There are no standard forms. Florida Statute defines Ocean Marine Insurance as “Insurance against, or against liability of the insured for, loss damage or expense arising out of, or incident to, the ownership, operation, chartering, maintenance, use, repair, or construction of any vessel, craft, or instrumentality in use in ocean or inland waterways, including liability of the insured for personal injury, illness, or death or for loss of or damage to property of another person.”

   Boiler & Machinery/Equipment Breakdown Insurance:

   Boiler and Machinery insurance covers the sudden and accidental breakdown of many types of equipment. It protects electrical systems, air conditioning and refrigeration, mechanical equipment, modern office equipment in addition to heating systems such as boilers. That's why it is often called “Equipment Breakdown Insurance”.

   Aviation Insurance:

   Aviation insurance provides property coverage for the entire hull and its parts, and liability coverage for bodily injury and property damage. This is a very highly specialized area designed to meet General aviation needs.

Contact us today to learn more!

Don’t leave your business’s future to chance – invest in the protection and peace of mind that comes with business insurance!

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