It is always good to know what your legal requirements are regarding is business insurance. For example, you might have some employees, and you are also the one in charge of the business operations. If this is the case, then you would most likely need to acquire liability coverage. There is actually a separate legal requirement for small businesses only. In fact, this requirement is actually an amendment to the Small Business Administration (SBA) rule.
Your commercial insurance policy can cover property damage, liability, advertising and public liability. The latter is particularly important if the business is engaged in a type of activity that exposes it or its products to the public. However, the latter coverage is not an absolute requirement, and some states still require an independent agents' policy in order to protect the small business owners. Why?
As previously mentioned, a number of states require business owners to obtain a Commercial Insurance Company (CIC) policy from an insurer of their choice before they can be granted business coverage. Why do they do this? One reason is to avoid the possibility that independent agents' coverage will not suffice for the business owners' needs.
According to the law, a business owner's policy coverage may be decreased if there are major omissions made during the preparation of the application. These omissions are categorized as having caused the applicant a net loss, regardless of the actual amount of damages. So, you should make sure that your application includes every detail that could be deemed necessary and helpful in justifying your claim. This includes information about the nature of the accident and the damages incurred.
Another detail that must be included is the workers' compensation coverage. This type of coverage will cover losses suffered by employees, as well as other people who may become injured on your premises. Your insurance company should have details regarding this coverage. The law also requires that all applicants are provided with workers' compensation coverage. However, even if a worker's compensation policy is obtained, it is still highly recommended that you obtain other types of liability coverage, as well.
Professional liability insurance is another detail that is required by law. This part of your policy will cover losses incurred by you or your business while using services provided by your employees, contractors, or customers. In addition, professional liability coverage also covers errors and omissions, which are considered common errors when providing such services. As previously mentioned, most employers are required to obtain liability coverage, but it is important to note that professional liability policies are not mandatory. If you are uncertain whether or not this is a requirement for your organization, you should contact a professional insurance agent.
Property insurance is another detail that is required by law. If you own any real estate or other type of investment property in your commercial operation, you will want to consider obtaining a property insurance policy. This will provide protection . . . . . . against damage or loss that is both expensive and unpredictable. The type of property coverage you purchase should be determined by the type of property you operate.
Probably the best way to be absolutely certain that you are purchasing the proper amount of coverage for your business operations is to consult with an independent insurance agent. An independent agent will not represent either your company or any other company. They will, instead, take the time to understand the needs of your business and then create a policy that is specifically designed for your operations. When you discuss business insurance with an independent agent, ask several different questions, and consider pricing for your coverage. You can then have the peace of mind that you need to feel safe and secure in your business operations.