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Personalize the protection needs for your home and personal property and personal liability. - Business
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I just started my business. Do I need insurance immediately?
What types of insurance should I buy for my business?
What is a Business Owners Policy?
What is Actual Cash Value?
What is Replacement Cost Valuation (RCV)?
What is Coinsurance all about?
What is a Certificate of Insurance?
How does a Commercial Umbrella Insurance policy work?
What is Workers’ Compensation Insurance?
Is Workers’ Compensation Insurance required for my business? I just started my business. Do I need insurance immediately?
Yes, as the potential of suffering a loss begins on your first day of business. Proper insurance coverage must be in effect to protect you in the unfortunate event of having an accident or occurrence. If you sustain a loss and do not have insurance or have improper/insufficient coverage, there is very little, if anything, your insurance agent can do to assist you. By carefully examining your business operations with an insurance agent, you can identify exposures to accidental losses and plan for the risks that are inherent in any business, and the losses (sometimes catastrophic) that can occur.
In addition, many states and local jurisdictions mandate that companies be insured before they can begin operating. Also, if you lease space for your business, the landlord will most likely require that you have sufficient insurance protection in place.
back to top What types of insurance coverage should I buy for my business?
Your insurance needs will obviously depend on the type of business you operate, the level of premium you are able to afford, and the risks you are willing to accept. Generally, there are six basic types of commercial insurance to consider: Commercial General Liability, Commercial Auto, Commercial Property, Workers’ Compensation, Bonding, and Umbrella insurance. It is important to note the aforementioned coverage’s may not apply to every business; however, Commercial General Liability insurance is essential for all organizations. There are various other policies needed by some businesses. They include, but are not limited to: - Errors & Omissions Insurance (E&O) / Professional Liability
- Employment Practices Liability (EPLI)
- Directors & Officers Liability Insurance (D&O)
- Crime Insurance
- Inland Marine Insurance
back to top What is a Business Owners Policy?A Business Owners Policy (BOP) combines real and personal property, business interruption and liability coverage’s together in one contract. They are available to businesses that generally face the same type and degree of risk. Endorsements can be added to the basic contract to customize it for a company’s specific needs. BOP’s do not cover professional liability, auto insurance, workers’ compensation or health and disability insurance. You will need separate insurance policies to cover professional services, vehicles and your employees.
back to top What is Actual Cash Value?
Actual Cash Value (ACV) pays for the cost to repair or replace damaged property with like kind and quality, less reasonable deductions for wear and tear, deterioration, and economic obsolescence.
back to top What is Replacement Cost Valuation (RCV)?
This loss valuation method pays for the cost to repair or replace damaged items with like kind and quality without deduction for depreciation. This is important since you could face a substantial loss if you must replace property at today's prices but receive only the depreciated value of the property that was destroyed.
back to top What is Coinsurance all about?
Most commercial insurance policies contain a coinsurance clause requiring that the limit of coverage be a minimum percentage (usually 80%) of the insurable value of your property. If the amount of insurance carried is less than what is required by this clause, any claim payment may be reduced by the same percentage as the deficiency. For example, covered property worth $100,000 may require a minimum of 80%, or $80,000, of coverage for compliance with the policy's coinsurance requirement. If only $60,000 of coverage is carried (25% less than the required $80,000), then any loss payment would be reduced by 25%.
back to top What is a Certificate of Insurance?
A Certificate of Insurance provides evidence that Workers’ Compensation, General Liability and other types of coverage’s are active and in force. Certificates are not insurance contracts; they do not define or alter coverage. Their sole purpose is to offer proof that insurance coverage exists at the time the certificate is issued.
back to top How does a Commercial Umbrella Insurance policy work?As the name implies, an umbrella policy provides coverage over and above other liability coverage’s. It is designed to insure against unusually high losses. It offers protection when the policy limits of primary policies have been exhausted. For the typical business, an umbrella policy will provide protection over and above general liability, auto liability and employers liability contracts. Umbrella policies can also provide coverage for some risks, subject to retention, when primary coverage does not respond. back to top What is Workers’ Compensation Insurance?
Workers’ Compensation insurance covers injuries and occupational diseases sustained at work. Fault does not matter; employers are liable even if the employee may have contributed to the injury or illness. Such coverage is required in most states, and specifics of the coverage vary from state to state. It is important to note that workers’ compensation coverage is not a substitute for an employee’s health/medical insurance, because it only covers on-the-job injuries. When employees are injured on the job, workers’ compensation insurance will pay for items such as: rehabilitation costs, medical bills, lost wages (up to two-thirds of an individual’s salary), etc. back to topIs Workers’ Compensation Insurance required for my business?
It is recommended that all companies carry workers’ compensation insurance. All employers in Massachusetts are required by state law to carry workers’ compensation insurance covering their employees, including themselves if they are an employee of the company. This requirement applies regardless of the number of hours worked in any give week, except that domestic service employees must work a minimum of 16 hours per week in order to require coverage. Members of a Limited Liability Company, partners of an LLP, Partnerships and/or Sole Proprietors are not required to carry workers’ compensation if they do not have any employees. However, under a change to the law in 2002, such members, partners and sole proprietors may choose to purchase workers’ compensation for themselves if they wish. Employees of such organizations must be covered by workers’ compensation insurance. Please note that all states have their own workers’ compensation laws, so it is imperative to check with local workers’ compensation bureaus for regulations
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- General Property Coverage
- General Liability
- Professional Liability
- Worker's Compensation
- Business Automobile
- Fidelity and Crime
- Bonds
- Boiler & Machinery
- Excess & Umbrella
- Inland Marine
- Ocean Marine
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