Business Insurance

What business insurance coverages do I need for my small business?

Most private companies need General Liability and Property Insurance as a starter. Once you hire an employee, you’ll likely need Workers’ Compensation Insurance also; most states require it. Business Auto is vital if you or your workers drive for your business.

Most entrepreneurs have a smart thought of what instruments, gear, materials and innovation they have to maintain their business. Be that as it may, they don’t generally realize what sorts of protection they need and how much insurance is proper to help fully protect their business.

If you’re a well establish small business, or plan to start a new business, you likely have thought about some of the basic hazards you may confront. Mishaps can occur either with people visiting your store or it may involve one your employees and things break from time to time.  Property claims and Liability lawsuits have become fairly common especially in California. Many states have been experiencing major weather related claims over the past few years that have been bringing about record level property claims. Quite a bit of a business’ prosperity depends on its versatility through difficulty. Your company and its’ employees dependent upon you to find a way to help guarantee your business will make it through any possible liability you might anticipate happening.

Small business insurance is a valuable risk transfer option which enables your business to endure and thrive through the hardest occasions. Having the proper business insurance in place helps your company transfer potential liability and property expenses to the insurance carrier. Without business insurance, you would need to pay those expenses out of your own business and individual resources. On the off chance that you are considering self-insuring potential issues it is important to know that the average liability claim cost $15,000.  

Integrity Now Insurance Brokers recommends purchasing General Liability and Business Property protection for your small business. If your company qualifies for a BOP – a Small Business Owner’s Policy – which contains both liability and property protection as a package policy.  These policies can provide additional protection not found in a standard General Liability policy at a reasonable price.  In California Workers’ Comp Insurance is required by law if you have an employee working for your company. If you or your employees will be driving as part of their job, a Commercial Auto Insurance policy will need to be purchased as well. 

Once you have these primary coverages in place, consider the risks that are unique to your business and look into adding additional coverages in order to fill in any gaps your primary policies may not cover.

Do I Need Liability Insurance for My Small Business?

Yes, you presumably need risk protection for your small business. It helps spread the expense of insurance claims made against your business. Insurance protection comes in a few unique structures. Two of the most well known are General Liability and Professional Liability.

General Liability Insurance helps spread the expenses of claims made against your business related to someone getting injured or property damage. For instance, a client slips and falls in your store and makes a case against your business for the expenses of their medicinal treatment. General Liability Insurance can help manage the expenses related to the claim filed against your small business.

General Liability Insurance can likewise help spread the expenses for claims that your business harmed another person’s property. For instance, a client slips on your newly mopped floor and is harmed. This individual is required to go to the emergency room which ends up costing them thousands of dollars in expenses. At the point when this client makes a claim against your business, your General Liability Insurance policy will help take care of those expenses.

Professional Liability Insurance helps spread the expenses of cases that your business committed an error or false omission in the products or services you provided. For instance, a customer makes a case against their beautician in light of the fact that, because of a blunder in handling her shading treatment, her hair turned bright orange rather than the chestnut shading she mentioned. The hairdresser’s Professional Liability Insurance can help spread the expenses to settle this case.

Professional Liability additionally helps spread the expenses of blunders committed in view of administrative errors. This can incorporate slip-ups made by an employee and not simply the owner of the small business. For instance, the assistant at a dental specialist’s office booked a patient for the wrong kind of procedure and that procedure was performed on the patient. Professional Liability Insurance can help spread the expense of the case made against the dental specialist’s office.

What Does Small Business Insurance Cover?

Small business insurance helps cover the costs of liability and property damage claims. An important optional coverages small businesses should also obtain is business income and extra expense coverage.  This coverage can replace lost income and extra expenses incurred, if your business is temporarily unable to operate because of a covered incident. Because small business insurance encompasses an array of different coverages, most small business insurance policies can be tailored to fit your business’s unique needs. This way, you can add the protection you need and avoid paying for coverages your business won’t use.
 
Following are a list of common insurance coverage options small businesses obtain and a general summary of how they work.
  • General Liability Insurance provides liability insurance coverage for third party losses involving your your small business.
  • Workers’ Compensation Insurance helps provide benefits to employees who become injured or ill on the job. In the unfortunate event that an employee dies due to a work-related injury or illness, benefits can be paid to his or her family.
  • Commercial Auto Insurance helps cover the costs of auto accidents that you or your employees are involved in while driving for work purposes.
  • Business Income Insurance helps replace lost income if you must temporarily shut down your business because of a covered incident.
  • Betterments and Improvements Insurance helps rebuild your business you rent from a landlord in which you added your own fixtures, made alterations, additions that you made a permanent part of a building.
  • Employee Theft Insurance help cover internal theft of money from your employees.
  • Commercial Umbrella Insurance extends the limits of your liability insurance policies. If a liability claim made against your business exceeds the limits of your primary liability coverage, Commercial Umbrella Insurance can help cover the excess liability costs. This acts as a financial safety net for costly liability claims made against your business.
  • Commercial Flood Insurance helps cover the cost of damages to your business property because of floodwater.
  • Commercial Earthquake Insurance helps put your small business back in order because of an earthquake.

What is employment practice liability insurance ("EPLI")?

Employment practice liability insurance covers your small business against lawsuits involving one of your employees who believes their legal rights as an employees have been violated.

There has been an increase in the number of lawsuits filed by employees against their employers and these numbers continue to rise yearly. The perception is that most lawsuits are filed against large corporations, this statistic no longer appears to be the norm. Recognizing that smaller companies now need this kind of protection, some insurers provide this coverage as an endorsement to their Business owners insurance Policy (BOP). An endorsement changes the terms and conditions of the policy. Their are companies that now offer this coverage on a standalone basis however the cost will be substantially higher than if it is included in your commercial package policy or a BOP policy. 

Employment practice liability insurance provides protection against many kinds of employee lawsuits, including claims of:

  • Sexual harassment – Conduct involving unwelcome sexual advances, requests for sexual favors, and verbal, visual, or physical conduct of a sexual nature.
  • Discrimination – Claim are typically brought by the Equal Employment Opportunity Commission (EEOC) against an employer, in which the EEOC alleges that more than 15 individuals were victims of discrimination by that employer.
  • Wrongful termination – The act of terminating an employee in a manner that is against the law.
  • Breach of employment contract – employee alleges that an employer has breached the terms of an agreement governing the terms of employment, of which there are two basic types: (1) a written employment contract and (2) an implied contract of employment. 
  • Negligent evaluation – When an employee asserts that the employee’s performance evaluation was excessively negative, unfairly low, or otherwise inaccurate and therefore did not reflect the employee’s actual, higher level of performance
  • Wrongful Failure to employ or promote – A type of employment-related claim alleging that a qualified employee was denied a promotion. Claims asserting wrongful failure to promote are often combined with discrimination claims. 
  • Wrongful discipline – A type of employment-related allegation that either (1) an employee was disciplined for an infraction that did not occur, or (2) if the employee did commit the infraction, the discipline for the employee could be considered excessive. 
  • Deprivation of career opportunity –  A claim alleging a failure to provide specific types of training that could have otherwise advanced an employee’s career. For example, if an employee is not permitted to enroll in a course for a manager position in which they are qualified, this could give rise to a claim of wrongful deprivation of a career opportunity.
  • Wrongful infliction of emotional distress – Involves some kind of conduct that is so terrible that it causes severe emotional trauma to the victim.
  • Mismanagement of employee benefit plans – When the employer who is controlling the management “Fiduciary” of employee benefit plans, investment of funds, and controlling or disposing of plan assets is accused of being in breach their fiduciary duties.  This risk remains even if you hire a third party to manage your plans.

The cost of employment practice liability insurance depends on your type of business, the number of employees you have and various risk factors such as whether your company has been sued over employment practices in the past. The policies will reimburse your company against the costs of defending a lawsuit in court and for judgments and settlements. Legal cost are covered by your insurance policy, whether your company wins or loses the lawsuit. It is important to point out that employment practice liability insurance policies typically do not pay for punitive damages or civil or criminal fines.  Liabilities covered by other insurance policies such as workers compensation are excluded from employment practice liability insurance policies.

While you can not eliminate the risk of a claims there are steps that can be taken to reduce employee lawsuits.   

  • Educate your Managers and employees about proper behaviors while at work.
  • Create effective hiring and screening programs to avoid discrimination in hiring.
  • Post corporate policies throughout the workplace and place them in employee handbooks so policies are clear to everyone.
  • Show employees what steps to take if they are the object of sexual harassment or discrimination by a supervisor. Make sure supervisors know where the company stands on what behaviors are not permissible.
  • Proper documentation is critical whenever there is a possible occurrence  
  • Make clear the steps your company needs to follow and is taking to prevent and solve employee disputes.
  • Take every report very serious.

Products and Services

  • Auto Insurance
  • Home Insurance
  • Renters Insurance
  • Individual Health Insurance
  • Life Insurance
  • Business Insurance
  • Workers’ Compensation Insurance
  • Property Insurance
  • Group Health Insurance

Location

Integrity Now Insurance Brokers, Inc.

6285 East Spring Street, #457

Long Beach, CA 90808

562-606-1030

kedwards@integritynowins.com

CA Insurance License 0D42517

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