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Small Business Insurance Cost

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Small Business Insurance Cost

Small businesses are a substantial part of the Arizona economy. There are approximately 550,000 small businesses operating statewide employing roughly 1 million people. Small business owners should maintain liability coverage and other insurance necessary to protect the business in the event of unexpected accidents. Small business coverage should reflect the needs of your specific business as part of a broad risk management plan. When considering small business insurance, it is important to assess your business operations with assistance from an experienced insurance professional. This will help determine the types and amounts of coverage needed and maximize value.

Common Questions to Consider

  • Do you operate in an industry that requires certain business liability insurance according to federal or local laws?
  • Does your business have physical assets that need protection such as inventory, equipment or vehicles?
  • Are you currently have employees? If so, what is the number of employees?
  • Do customers or suppliers visit your property and could they be injured while on the premises?
  • Does the business gather or maintain any personal or sensitive information?

General Liability Insurance

A general liability policy is needed for businesses to protect themselves. These are important if the business faces liability for personal injuries, property damage or need to defend themselves in a lawsuit. A business owner liability policy may bundle several forms of coverage into a single policy offering simplicity and a cost savings.

Property & Vehicle Insurance

Property insurance policies may cover losses from fire, storms, or vandalism. Depending on the terms of the policy, certain events such as floods or earthquakes may be excluded. If you provide onsite service or installation work, this coverage may apply if damage to a customer’s property occurs.

In today’s economy many individuals are operating home-based businesses. They might require coverage that may be an optional addition to a homeowners insurance policy. Vehicle insurance coverage is critical for protecting company owned vehicles and for potential liability from an accident. The costs of these forms of coverage usually increase if you have a history of claims.

Product Liability

Those involved in manufacturing, product distribution or retail may potentially face a product liability claim. For example, a buyer of your product could be injured due to a defect resulting in legal and medical expenses. A product is generally defined as something that is tangible that may be used or consumed. Examples of product liability claims include:

  • Substandard workmanship
  • A failure or defect in design or the manufacturing process
  • Usage of materials that are flawed or defective
  • Failing to provide safety instructions or warnings

Workers Compensation

This form of coverage is mandatory in Arizona for employers who regularly hire new workers. This requirement applies regardless of the number of workers that are employed. It is used to pay needed medical expenses and a portion of wages temporarily while the individual is making their recovery. Workers comp may provide compensation if a worker develops an occupational illness or disease. In the event of a workplace fatality, this coverage may compensate the family of the deceased. Workers compensation is a system that does not place blame on anyone. This means that the coverage will apply regardless of who was liable for the injuries.

The National Academy of Social Insurance released their report concerning the costs of workers comp coverage for 2016. Employers across the nation spent an average of $1.30 on coverage for every $100 in payroll. Arizona employers paid considerably less than those in other states. To gain insight, we will look at what Arizona employers are paying compared to those in adjacent states.

2016 Cost Data [1] $
Arizona 0.95
California 1.97
Colorado 1.02
New Mexico 1.41
Nevada 0.95
Utah 0.88

Professional Liability

Businesses that offer professional services maintain professional liability coverage in the event that negligence or errors cause harm. Sometimes, this type of business coverage is referred to as “errors or omissions” insurance. A common example would be civil actions of medical malpractice. Here, a healthcare provider is accused of being negligent or failing to meet the current standards of the profession. This coverage may also apply if a professional faces an allegation such as copyright or trademark infringement.

Cyber or Data Breach Coverage

In our connected digital business environment, the importance of cyber security should not be underestimated. Businesses that process credit card information are one common target among hackers. Other confidential and sensitive data includes social security numbers and medical records. This is still a relatively new type of coverage in the commercial insurance market.

Small Business Insurance Costs

General liability insurance coverage for a small business may be more affordable than you think. According to pricing research, $1 million in coverage will cost between $300 and $1,000 annually. Annual premiums increase between $500 and $1,300 for $2 million in coverage.

Average Cost for General Contractors[2] Premium Limit (per claim) Deductible
General Liability Policy $380 – $1,380 $1,000,000 $1,000
Business Owner Policy (Liability + Property Coverage) $500 – $639 $1,000,000 $500

[1] https://www.nasi.org/sites/default/files/WorkersComp2016_FINAL.pdf

[2] https://construction.insureon.com/resources/cost/general-contractors

Provider of Small Business Insurance in Pinal County

The Gebhardt Insurance Group in Casa Grande is a local insurance agency. We will work to create a small business insurance solution specifically for your business and will identify the types of coverage you need to protect your business. We are an independent agency that can consider bundled commercial insurance packages from dozens of carriers to maximize affordability. Business owners who have not reviewed their existing business policies in several years are also encouraged to contact us. Give us a call today at (520) 836-3244.

Types of Business Interruption Insurance

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Types of business interruption insurance

Your business is an investment of your time, money and energy. You probably already have an insurance policy in place to protect. (If you don’t, there’s no time like the present!). An important part of any business insurance policy is business interruption insurance.

Business interruption insurance works to protect you by financially covering you in the event of unforeseeable damages and expenses incurred because of those damages.  Key terms to keep in mind for this insurance include: covered peril and restoration. If your business sustains damage or is destroyed interruption insurance can help reimburse you for lost income and other related expenses. This will only take place if the damage is caused by a “covered peril” and will only cover losses sustained during a reasonable period of time for rebuilding or restoration.  Covered perils will depend on your policy and any listed exclusions.  Your restoration period will be determined by the amount of damages and how long it reasonably takes to get your doors open for business again.  In simpler terms, business interruption insurance provides financial relief in the amount of the actual loss provided the cause of the loss is not excluded by the policy and only during the time period it takes to rebuild or restore the business to its previous operating ability.

There are three primary types of business interruption insurance.

Basic coverage

Basic interruption insurance is designed to cover you losses and expenses while your business is in the midst or repairs or rebuilding and is unusable. This coverage ends as soon as repairs are completed or sooner if you have a predetermined time limit built into your policy. It is also important to note that this insurance extends only for as long as it reasonably takes for repairs to take place. If you have long delays or prolong the repair process, your insurer may decline to cover beyond the reasonable period of time.

Extended coverage

Extended coverage includes an additional period of time from your repairs being completed to the time your business begins to earn income. For many businesses, it may takes some time to reopen their doors and start to make money again. If you can’t afford a lag in profit earning, you may want to consider extending your interruption coverage and make sure you are covered in case there is a gap.

Contingent coverage

Contingent insurance extends even further, to connected issues and entities. If you are a primary supplier of parts and your inability to supply a vendor that relies on you is financially damaging, your contingent coverage can kick in and save the day. This policy has a much wider reach than basic coverage and can extend to earnings that are not directly tied to the physical damage of your business.

There are some key questions to consider when assessing your business interruption insurance needs.

What do you have available for reserves?

Business interruption insurance can help keep your company afloat and solvent in the event of an unforeseen disaster or damages. If you have a healthy amount of reserve funds in the bank, you may be fine with basic coverage. However, if being closed for a month due to unexpected damages could put you out of business, consider increasing your coverage.

What is included in your basic business insurance policy?

It is critical that you understand what is and is not included in your existing policy. It is always a good idea to have your insurance professional review your policy with you to make sure you understand existing exclusions and policy amounts. If it would only cost $10,000 to rebuild your business and income for six months, you probably don’t need a million dollar policy. Appropriate coverage amounts are determined by many different factors and should be thoroughly discussed with an experienced agent. Also, your insurance professional can review your policy and identify any gaps or double coverages that can be eliminated.

What is most necessary and important to keep your business running?

Can you live without the work space but desperately need the staff on your payroll? Is the existing business space critical to your earning ability? It is helpful to identify which parts of your business are essential and then work with your agent to ensure they are covered by your policy.

Your business is more than just a brick and mortar building. Interruption insurance can help cover the cost of moving to a new site, payroll expenses, loss of income and much more. The best way you can protect your investment is to make sure you have the business insurance you need. If you are concerned about your existing policy, please call our office and let us review current coverage. We work with many different insurers and quote your policy needs with multiple companies to get you the best pricing possible.

Business Interruption Insurance: What it can and cannot cover

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Business Interruption Insurance what it can and cannot cover

As a business owner you may put much more than just money into your business. Your blood, sweat and tears may also go into making your business a success. That’s why insuring your investment is so important.  Business interruption insurance may also be called business income insurance and you may ask yourself, “what can business interruption insurance cover?” This type of insurance is designed to protect your business in the event of losses that could be incurred by loss or damage caused by a covered peril. Covered perils will depend on your policy type of business interruption insurance and any listed exclusions. These types of policies typically cover the actual loss a business sustains during restoration.

While this all may sound very complicated, the structure of the policy is fairly straight forward once you move past the insurance jargon. In simpler terms, business interruption insurance provides financial relief in the amount of the actual loss provided the cause of the loss is not excluded by the policy and only during the time period it takes to rebuild or restore the business to its previous operating ability.

An example of a time when business interruption insurance may be used is rebuilding a business after a disaster such a fire. If your business were to suffer damage after a disaster, your business interruption policy may kick in and cover sustained losses such as:

Loss of income

If your business is closed for 6 months, you may lose a significant amount of sales. Your insurance company may use prior accounting records to determine an average amount of monthly losses.

Operating expenses

You may still be responsible for operating expenses which may be covered with this type of policy. Again, the insurer may look at historical records to determine an average expense and reimburse you accordingly. Your insurance may also help you with loan costs and even tax payments that are due.

Relocation

If your property is no longer usable you may be forced to relocate your business while the primary location is being rebuilt or repaired. Your insurer may cover moving and operating costs for your temporary location.

Employee wages

You don’t want to lose your best employees while your business is closed. Interruption insurance can help cover payroll costs until you are back up and running.

Additional expenses

You may be reimbursed for reasonable additional expenses that are incurred as part of the loss. Keep in mind that the insurance company will stress the reasonable part of this coverage.

There are some important points you should be aware of when considering business interruption insurance.

Business interruption insurance won’t cover everything.  It is not typically sold as a stand-alone policy. Because business interruption insurance is usually part of a broader business insurance policy, make certain that you understand what is and is not covered and where your policy starts and ends. For example a broader policy could exclude flooding from coverage, so your business interruption insurance will also not cover damage from floods.  Additionally, there are things that this type of policy won’t extend to. Flood damage and earthquake damage are good examples of items that are usually not covered unless they are specifically added to your policy or purchased additionally.

Business interruption coverage will only reimburse you up to a policy limit. Carefully consider what it would cost you to relocate your operations and be out of business if disaster struck. Use this cost to determine your best policy and coverage amounts.

This type of coverage stresses financial protection during the time of restoration.  Your insurance company will only be held liable for the reasonable amount of time it would take to rebuild, repair or restore your property. This period of time starts at the time damage was incurred and ends when your property has been reasonably restored.

There may be a waiting period. Many policies have mandatory waiting periods which can very from three days to three months. Make certain you know if your coverage includes a waiting period and what this time frame is. You should also have some savings set aside to cover this waiting period, just in case.
An important part of being a business owner is protecting everything you have built. Business interruption insurance provides coverage for you, your property, your income, and your employees in the event of unexpected disaster. Choosing your policy and understanding your coverage are imperative parts of making sure you have the insurance you need.

We offer the opportunity for you to work with experienced business insurance agents that will be detailed and take the time needed to ensure you understand your coverage. Our individualized attention ensures you can benefit from all aspects of your business coverage. We work with many different insurers which gives us the ability to get you coverage at the best possible price. We have made it our business to protect your business.

Types of Insurance for Your Business

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man signing insurance contract

There is a wide variety of insurance for your company, and it can be confusing trying to figure out which ones you need. All insurances will cover different items and situations, so it is important to learn the different types before making a purchase. It is always a good idea to sit down with an insurance agent who specializes in business insurances to discuss your specific needs.

Depending on your line of business, you may or may not need certain insurance coverages. A business that has a higher risk of injury, for example, will want to have more coverage for injuries than a business that tends to feature a safer working environment. It all really depends on what your type of company needs and can afford.

In addition, some coverages are required by law. Depending where you business operates, or what kind of work you do, there may be federal, state or local laws that require you to obtain specific types of business insurance. Be sure to do your research on this before skipping any certain coverage, or buying coverage you do not need.

Here are some of the most common forms of business insurance:

Professional liability Insurance

Also known as Errors & Omissions (E&O) insurance, this coverage takes care of situations of negligence, such as when a product causes an injury or fails to function properly. This could also include cases where a client bought a product or service that ended up hurting their business rather than helping.

Property Insurance

This covers a wide range of physical damage that could be done to the business, such as damage to the office building, company vehicles, or other property owned by the company. Property insurance tends to cover damage due to vandalism, fire, and storm damage, but usually does not include major disasters like earthquakes and floods. This coverage may also take care of instances when a customer’s property is damaged while services are being rendered, such as a contractor damaging a customer’s home while doing repairs.

Product Liability Insurance

If your product or service injures a customer, product liability insurance can cover the costs of health and legal fees. This could be a very important coverage to have, especially if your company sells many units of an item which ends up being defective. Class action lawsuits could arise in a case like this, where every customer will be awarded damages for the defective item.

Life Insurance

Just as with individual life insurance, businesses can also buy a policy for any employee that is deemed essential to the survival of the organization. This is especially important for very small businesses, like family owned companies. If one of the few people in charge were to suddenly die, the company may struggle very much to stay in business.

Workers’ Compensation Insurance

Workers’ Compensation insurance covers some of the salary of an employee who gets injured on the job and can no longer work for a time. If an employee is injured on the job, it can be very costly to pay their salary out of pocket while not obtaining any benefit from them while they recover.

Home-Based Business Insurance

For companies that are primarily located in one’s home, a home-based business insurance policy may be useful. This would cover office equipment and inventory stored in the home. Homeowner’s insurance may not cover these items if damaged or broken.

Vehicle Insurance

Just like insurance for your personal car, vehicle insurance is essential for any business that delivers goods to their customers. This one can be a bit complicated, however. If your business utilizes employee vehicles, their personal car insurance may be good enough, depending on the situation and the services being rendered.

Business Interruption Insurance

Just as it sounds, business interruption insurance will take care of financial lost when business is interrupted. A company may be forced to close temporarily due to a major storm, weather damage, or fire, among other reasons. Another business within the same building could have a fire, causing all offices within the building to be closed down for a time, making this a very important coverage.

Data Breach Insurance

In the information age, data breach insurance is becoming more important. Coverage from issues related to computer hacking can be covered with this insurance. If your company loses business due to a hack, or worse yet, customer financial data is stolen, data breach insurance will usually cover damages.

Directors & Officers Insurance

Also known as D&O, this coverage will take care of any personal financial responsibility on the part of any directors or officers in a company. This can be necessary if a scandal hits the company and all higher ups are considered liable for damages. However, this insurance does not cover in situations of personal negligence or purposeful deceit.

These are the major types of business insurance. Some of these are not needed for some businesses, while others are essential. Be sure to speak with a professional insurance agent, as well as fellow businessmen in your field, to determine what you need.

Small Business Insurance: What You Need to Know

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Small business insurance photo
If a customer wasn’t happy with your product or service, could you afford to defend yourself against a lawsuit?  If there were an electrical fire, could you pay out of pocket to replace all of the products and belongings?  As a small business owner, you simply have to have a solid small business insurance policy.  Without coverage one lawsuit or mishap could send you into bankruptcy and close your doors permanently.  The good news is that insurance companies understand the needs and challenges of small businesses and have built insurance policies to provide the coverage your business needs.

Business Liability Insurance

Business liability insurance is a must for any business.  This coverage can protect you in the event of many different claims such as personal injury, property damage and bodily injury that may occur during the course of business.  A slip and fall is a good example of when and why you need liability insurance.  A slip and fall is a common term to describe a personal injury.  When a patron trips and falls or becomes injured on the premises of your business and chooses to sue, your liability insurance may come into play.

For someone to bring a successful injury claim against your business he or she must prove that the injury was caused by negligence or that the cause of the injury could have been foreseen by a reasonable person and was not addressed.  If a suit is brought against you, even if you are found not to be liable there could be substantial expenses in attorney’s fees and other costs.  Make sure that your business is protected.  Liability insurance may cover the cost of an attorney, payouts of successful claims and even medical expenses for an injured party.  Unless you are independently wealthy and can afford to cover the expenses of a costly lawsuit, make sure you have liability insurance at a bare minimum.

General liability will also generally cover some product liability.  For instance, if you sell dog food and a customer sues stating that your product made his or her pet ill, your business liability insurance may provide coverage.  It is important that you work closely with an experienced insurance agent to assess your business needs and obtain the appropriate coverage.

Business Insurance Cost

You small business insurance policy cost may vary dramatically based on a number of factors.  The first step towards affordable insurance coverage is to understand your insurance needs.  Every business is different and will have different coverage requirements.  If your company handles medical billing or any type of sensitive information, you may need to purchase an insurance policy that covers data breaches.  If you offer professional advice you will want to look into Errors and Omissions insurance.  You shouldn’t rely on a general liability insurance policy to cover everything, because it won’t.  You need to work with a skilled agent that will ask the right questions and help you ascertain what you need to provide appropriate coverage.  General liability policies only go so far.  If you need additional protection, your insurance agent or broker can research riders, adding on additional policies or an umbrella policy for more comprehensive coverage.

Don’t be afraid to shop around.  You need to know the rates and policies that are available to you.  The best way to do this is to carefully review your options.  Make sure that you take the time to get quotes from different carriers.  Some carriers have different underwriting requirements, pricing structures and policy packages so it is important to get quotes from different companies.

When applying for insurance, it is helpful to know how the insurance companies will assess your risk level.  All insurance related items in the past will become relevant.  Prior claims will make your premiums higher as you will seem higher risk to potential insurers.  Conversely, if you do not have a history of claims and maintain excellent safety standards and procedures you may qualify for lower rates.  Your ability to manage risk and demonstrate your ability to provide a safe work environment for your staff and customers will make you much more attractive to insurance companies and save you money.

Business Insurance Quotes

A key component of getting the most for your money is shopping your policy to different companies.  This can take time and you may end up with a policy that doesn’t address your specific needs.  If your small business needs financial protection, call Gebhardt Insurance.  We are an independent insurance agency that works with over 40 different insurance companies.  We will ask you about your business in detail and help you determine the types of policies you need and coverage amounts.  Once we have determined how much is needed to protect your business, we will submit your quote to the many different companies we work with to get you the coverage you need for the best price possible.

 

 

Business Insurance in Casa Grande

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Business insurance

Your business is your investment. You have put in your precious time and resources to establish and maintain your business.

Like any other form of investment, your business faces a wide variety of risks such as fire, theft, natural disasters, property damage, liability claims, etc.

These risks have to be managed. And one way to do it is to insure your business.

You certainly want to protect your investment. Today, various types of business insurance are available in the market.

Types of Business Insurance

Commercial Property Insurance

This type of business insurance will cover the physical assets of your business. This will protect you from the risk of damage on your properties due to natural as well as man-made events like fire, earthquake, flood, lightning, theft and explosion.

Typically, your commercial property will be insured in two main ways — open perils and named perils.

Open perils cover all the causes of loss not specifically excluded in your business insurance policy. The common exclusions in open perils include those damages brought about by flood, earthquake, war, acts terrorism and nuclear incidents.

Named periods cover all damages caused by incidents or events specifically named in your insurance policy contract.

Experts suggest that when you have your physical assets insured, it is important that you initially make a listing of all physical assets and then determine their replacement cost. You then make a decision as to which assets will be included in your business insurance coverage.

Experts advise that the following assets should be insured: building, machinery and equipment used in the business, computers, phones, printers, office furniture, outdoor features such as signs and landscaping, business records and documents and even inventory kept within your warehouse or building premises.

If your assets are insured, the insurance company either pays you the replacement cost or the actual cash value in case of property damage. Replacement cost is the amount that you need to actually replace your damaged asset.

This is the value of your asset without taking into account depreciation of your property. This coverage is generally more expensive than the actual cash value policy.

Actual cash value is the amount that you will receive from the insurance company to replace or repair you damaged or lost asset, after considering depreciation based on your asset’s age and condition.

General Liability Insurance

Experts say that this is the first line of defense commonly purchased by businesses.

This type of business insurance will protect you from damages and lawsuits due to bodily injury, personal injury, medical expenses, etc. For instance, if an accident happens in your retail store or establishment and several customers have been injured, this type of insurance will cover your liability.

This will even cover the cost of legal representation in the event of lawsuit.

Professional Liability Insurance

This type of insurance will protect you if you will be sued for negligence in connection with your business. This is also known as error or omission insurance.

Firms can be liable if their product is defective and has caused harm and injury to someone. Service and professional firms can be liable for providing improper care, service or advice to clients.

Typically, this type of business insurance will protect the business from the cost of defending negligence claim made by a client, as well as the damages awarded to such client in a civil lawsuit.

Aside from negligence, this insurance will also cover damages brought about by situations like patent or copyright infringement as well as personal injury like libel or slander.

Workers’ Compensation Insurance

In the United States, this policy is mandatory. When you have a business, you really have to get this type of business insurance for your workers. This will cover the cost of medical expenses of your employees if they sustain injuries on the job.

This may also cover a portion of their lost wages due to on-the-job injuries and in some cases, if they become ill due to occupational hazard.

Further, experts say that insurance can even be used by businesses to attract and retain good employees.

Group insurance coverage on employees such as life, health, disability and long-term care can be made part of your company’s employee benefit package. Remember, your employees will appreciate it if they have employee benefits that will help improve their quality of life outside the workplace.

Insuring your business entails additional cost on your part. However, this is also very much necessary as it will protect your business from the risks and perils of your day-to-day operations.

The time is now! Ask the experts at Gebhardt for a free quote. We can help you decide a comprehensive business insurance policy that is most appropriate for your business.

Can You Save Money by Bundling All Insurance in the Same Company?

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Can your Casa Grande insurance agent really save you money by bundling your policies?  The short answer is yes, and here’s how to “Bang for Your Buck“:

  1. Discounts, discounts, discounts. An insurance company is anxious to earn your business and will want to earn as much of it as possible.  To that end, many insurers will offer discounts if you bundle multiple policies.  Some Casa Grande insurance companies can offer you homeowners, business insurance bundles, vehicle and umbrella insurance all in the same place.  The more insurance policies you bundle, the deeper the discounts.  Bundling is an easy way to be fully insured and save money on your insurance premiums.  It is far more expensive for an insurance company to earn new business then to keep an existing customer.  This encourages them to offer you deep discounts to bring all of your business to them and stay with them.  Once a customer has moved his/her policies to an insurance company he or she is less likely to go elsewhere.  The eagerness of the Casa Grande insurance companies to earn your business, and as much of it as possible, is your opportunity for big savings.
  2. Convenience: There is something incredibly simple about having all your insurance policies with one carrier. If you have multiple policies with different carriers you can look forward to multiple bills in the mail every month, different policy cards to keep track of and multiple phone numbers and calls that have to be made.  When you bundle your policies you can streamline all of that.  Your many different monthly bills can be consolidated into one.  If you only have one payment to keep track of you are much more likely to pay your bill on time, avoiding any late fees and penalties.  You also get to limit yourself to working with one company, one insurance card and one system of filing a claim.  Working with your Casa Grande insurance company to bundle your policies can make your life simpler and your insurance premium easier to pay and manage.
  3. Coverage: There are instances where your insurance policies can either overlap or have gaping holes.  Bundling your insurance with the same company allows an agent to review your coverage comprehensively and identify any gaps.  That same agent can review all your policies to see if you have any overlapping coverage and make adjustments to save you money.  The key to successful coverage, whether you choose to bundle policies or not, is to understand your insurance policies and coverage benefits.  Work with your Casa Grande insurance company and agent to thoroughly review your coverage and identify any overlapping items that can be reduced to save you money.
  4. Deductibles: When you bundle policies you may only be required to pay one deductible when you would otherwise have to pay multiple deductibles with different carriers. com gives an example, “But what if…, your car is damaged by the same hailstorm? If you don’t bundle, you might have to pay the $1,000 home insurance deductible and a $500 auto insurance deductible before you received help from your policies. Some providers, when you bundle coverages, have a single deductible requirement – though usually you have to pay the larger of the two deductibles. Even if your Casa Grande insurance company requires you to pay the higher of any applicable deductibles, it could still be more cost effective than paying multiple deductibles to multiple carriers.  In this instance, if you have bundled your policies, the claim process is also simplified.  You only have to pay one carrier and you only have to file one claim.  When dealing with an unexpected accident or property damage, the least amount of work and inconvenience the better.

Bundling is usually, but not always, a good idea.  If you need specialized coverage, you may not get the best deal bundling.  It may be most cost effective to separate out your policies so that you can obtain the best rate for your specialized needs.  Bundled policy rates will vary by insurers so even if you are bundling you will want to shop around.  Also, an insurer may require a long term commitment from you to qualify for the savings, so make sure you are getting the best deal possible before committing.

The savings of time, money and headaches can be reflected in a study published by Insurance Journal.com  as they studied Generation Y and their satisfaction with their insurance.  This article demonstrates that, “Members of the Gen Y generation, who were born between 1977 and 1994, are less satisfied with their homeowner’s insurers than others.  One reason may be because Gen Y home owners are less likely than older or younger customers to bundle their insurance policies with a single insurer….Satisfaction among bundlers averages 810 vs. 741 among non-bundlers.”  This report reflects higher satisfaction rates for those customers that bundle their insurance.  The financial and logistical savings make bundling a great option for most.  Your Casa Grande insurance company can review your specific circumstances and make sure that the advantages to bundling are a good fit for you.

Do I Need Insurance for My Business?

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Do I Need Insurance for My Business? The short answer is yes; you absolutely need insurance for your business. Your business is the product of your blood, sweat and tears. It may be a new enterprise or a booming and established business but either way, it is important that you protect what you have worked to build. Doing business without insurance leaves you and your company open to a world of potential problems.

When looking at insurance for your business you have lots of options and things to consider. As a business owner you have a lot to protect. Just like no two businesses are exactly the same, no two businesses will have the exact same insurance needs. Some insurance offerings are appropriate for a business based on size or industry. It is important to talk to an experienced agent that can help you cover all your business insurance needs without overpaying for insurance you don’t need. There are many different types of insurance offerings out there for you to consider.

Property insurance: Property insurance typically covers losses and damages to real or personal property. You can purchase additional insurance that covers specific things such as debris removal and glass replacement. If you own a restaurant you may consider a specific property insurance to cover your equipment such as your kitchen appliances, cash registers, booths, and bar area in case of a fire or other covered loss.

Liability insurance: Despite the fact you are the model business owner you always face the possibility of a law suit. Liability insurance comes in many shapes and sizes. “Any type of insurance policy that protects an individual or business from the risk that they may be sued and held legally liable for something such as malpractice, injury or negligence. Liability insurance policies cover both legal costs and any legal payouts for which the insured would be responsible if found legally liable. Intentional damage and contractual liabilities are typically not covered in these types of policies.” In this litigious day and age liability insurance is a very wise investment. The cost of coverage can vary and depend on what industry you are working in and the size of the business you own. For instance, a large construction company may find liability insurance much more expensive than a small marketing company.

Workers Compensation: If you have employee’s you will more than likely need workers compensation insurance. As of 2010 workers compensation was required by 49 of the 50 states, with Texas being the only exception. Workers compensation regulations vary by state. Some states require workers compensation for companies with only one employee while others require it for companies with at least three employees. Workers compensation provides coverage for employees that are injured on the job. It can cover the injured employee’s medical expenses and partial disability payments while the employee is unable to work. For a comprehensive list by state of the workers compensation regulations visit the National Federation of Independent Business’s website: http://www.nfib.com/content/legal-compliance/legal/workers-compensation-laws-state-by-state-comparison-57181/. Because workers compensation is generally mandatory by law you should consult a state specific insurance expert to help guide you in your obligations and make sure you are compliant.

Life Insurance: Could your business continue if something unexpected were to happen to you? If you are a key employee, partner or owner and you were to die suddenly could the business go on without you? If the answer to either of these questions is no, life insurance for your business may be a consideration. A good example of this would be a husband and wife that have a family and own a small business together. If either spouse were to die unexpectedly not only would the family need funds to supplement the loss of income, so would the business. Life insurance designated for the business allows an influx of income if needed due to the loss of a key partner.

Data Breach Insurance: This insurance is an additional policy intended to cover the cost of a data breach. In this day and age of technology and hackers this policy may be well suited to your company, depending on what you do and if you handle sensitive data. An IT company or a doctor’s medical practice might be good candidates for this insurance. According to USAToday, 43% of companies experienced a data breach in 2013. In 2014 Target, Neiman Marcus, Michaels, UPS, Dairy Queen, and Home Depot were just some of the bigger named companies that experienced data breaches. Your general liability insurance may address a data breach to a limited extent. Consult with an experienced agent to make sure you have coverage appropriate for your industry and potential risk.

Commercial auto insurance: If your car is used for business purposes or is owned by your company you may need commercial auto insurance. If you use your vehicle for personal and business purposes you still may want to consider commercial auto insurance. Without it, if you are involved in an accident the insurance company may deny your claim under your personal car insurance because the commercial use of the vehicle may violate the terms of your insurance policy. The use of your vehicle and type of business will help determine your need for commercial auto insurance.

Directors and Officers Insurance: This is commonly known as D&O insurance. This business insurance is designed to protect you from personal losses if you are sued as a result of serving as a director or an officer. It may also cover legal fees for the organization should a lawsuit occur. D&O insurance can take different forms based on the industry and potential liability. Typically, D&O insurance does not cover fraud or dishonest acts.
As you can see you have many different options when it comes to insuring your business. Don’t let an unfortunate accident or lawsuit damage the business you have worked so hard to build. Your business needs insurance. Some policies will be required by law while others are optional and case specific. Consult an experienced insurance agent to figure out which insurance options are appropriate for you.

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