COMMERCIAL AUTO INSURANCE
As a business owner, you need the same kinds of insurance coverages for the car you use in your business as you do for a car used for personal travel -- liability, collision and comprehensive, medical payments (known as personal injury protection in some states) and coverage for uninsured motorists. In fact, many business people use the same vehicle for both business and pleasure. If the vehicle is owned by the business, make sure the name of the business appears on the policy as the "principal insured" rather than your name. This will avoid possible confusion in the event that you need to file a claim or a claim is filed against you.
Whether you need to buy a business auto insurance policy will depend on the kind of driving you do. A good insurance agent will ask you many details about how you use vehicles in your business, who will be driving them and whether employees, if you have them, are likely to be driving their own cars for your business. While the major coverages are the same, a business auto policy differs from a personal auto policy in many technical respects. Ask your insurance agent to explain all the differences and options.
If you have a personal umbrella liability policy, there's generally an exclusion for business-related liability. Make sure you have sufficient auto liability coverage.
Unfortunately for every business owner, the chances of getting sued have dramatically increased in the last decade. General Liability insurance can prevent a legal suit from turning into a financial disaster by providing financial protection in case your business is ever sued or held legally responsible for some injury or damage.
General Liability pays losses arising from real or alleged bodily injury, property damage, or personal injury on your business premises or arising from your operations.
Broad Range of General Liability Protection
- Bodily Injury, including the cost of care, the loss of services, and the restitution for any death that results from injury
- Property Damage coverage for the physical damage to property of others or the loss of use of that property
- Products-Completed Operations provides liability protection (damages and legal expenses up to your policy's limit) if an injury ever resulted from something your company made or service your company provided
- Products Liability is a more specialized product liability insurance that protects your company against lawsuits from product-related injury or accidents.
- Contractual Liability extends to any liability you may assume by entering into a variety of contracts
- Other coverage includes: Reasonable Use of Force; Borrowed Equipment; Liquor Liability; Non-Owned Vehicles (such as aircraft and watercraft); Fire, Lightning or Explosion Damage; Water Damage Liability Protection; Legal Defense Costs; Medical Payments; Personal Injury; Advertising Injury; and specialized liability protection for specific business types.
COMMERCIAL PACKAGE INSURANCE
A commercial package policy (CPP) is an insurance policy that combines coverage for multiple perils, such as liability and property risk. A commercial package policy allows a business to take a flexible approach to obtain insurance coverage. The benefit of CPP is that it may allow the business to pay out a lower amount of premiums than if it purchased a separate policy for each risk.
These packages can include:
- Commercial package policies (CPPs) are insurance policies that combine policies, such as liability and property.
- These policies are often meant for small- to medium-sized businesses.
- CCPs can include general liability, property, auto, and crime policies, among others.
- Some types of insurance aren't allowed in CCPs, such as workers' compensation and life group life insurance policies.
- CCP differs from the business owner policy (BOP) because the CCP is customizable, while BOP offers a set of policies that cannot changed.
- Commercial property insurance: If something damages physical property—such as your building or possessions—then this coverage can help you repair or replace them.
- General liability insurance: This covers your business in the event it causes property damage or bodily injuries to another party, like a client or vendor.
- Business interruption insurance: This helps you pay bills if you must temporarily close after a damaging accident.
- Commercial auto insurance: If your small business owns vehicles, this coverage supplies the requisite physical damage, liability and other benefits to help you afford the costs of wrecks or other vehicle hazards.
- Workers’ compensation insurance: If an employee gets hurt on the job, they’re often eligible for workers' compensation. This supplies supplementary income during their recovery.
- Errors & omissions insurance: Professional advice or mistakes can cause your clients a financial loss. This coverage compensates them on behalf of your business.
- Surety bonds: If you’re contractually bound to certain clients, then bonds will guarantee them that you will repay them if you cannot meet your obligations.
CONTRACTOR CONSTRUCTION BONDS
Contract bonds (also known as construction bonds) are part of the day-to-day business for most contractors. These surety bonds help to ensure a job well done by the contractor and peace of mind for the project owner.
Contractor Construction Bonds are generally required to bid for jobs or contracts, and make certain that:
- Contractors will abide by the specifications of a construction job or contract
- Contractors will pay any hired subcontractors, laborers and material suppliers
- Guarantees project completion that satisfies the contract requirements
Workers compensation laws were created to ensure that employees who are injured on the job are provided with fixed monetary awards. This eliminates the need for litigation and creates an easier process for the employee. It also helps control the financial risks for employers since many states limit the amount an injured employee can recover from an employer.
Workers Compensation Insurance is designed to help companies pay these benefits. As a protection for employees, most states require that employers carry some form of Workers Compensation Insurance. Workers Compensation Insurance is not health insurance. Workers Compensation is designed specifically for injuries sustained on the job.
In most states, if you have employees, you are required to carry Workers Compensation coverage. Even in non-mandatory states, it can be a very good idea, particularly if you have many employees, or if they are engaged in hazardous activities.