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I am starting a business. Do I need insurance right away?
Yes. The chance that you could suffer a loss begins with the first
day of business. You can’t get help after the fact. You must
be prepared for the risks that are inherent in any business and
the losses, sometimes catastrophic, that they can cause.
Also, many states and local jurisdictions require that businesses
be insured to begin operating especially workers compensation insurance.
If you rent space for your business, your landlord probably requires
that you be adequately insured as well.
I don’t have any major business assets, why do I need insurance?
Every business has some property. When you think about it, your
business is your property. Just like your home and your car, your
business needs to be protected from loss, damage and liability.
Your business is your source of income; you need protection from
the potential loss of that income.
Generally, there are two types of insurance, property and liability.
Property insurance covers damage to or loss of the policyholder’s
property. If somebody sued for damages caused by you or your possessions
(other than a vehicle covered by your auto insurance policy), the
cost of the suit – both defending it and settling it, if necessary
would be covered by your liability insurance.
What is Business Income coverage?
Business income insurance may reimburse you for ongoing expenses
such as utility bills while your business is closed due to a property
loss. This coverage also provides your loss of net income that you
would have earned if a covered cause of property loss had not occurred.
This coverage may also cover losses due to down time or extra expenses
needed to restore operations, such as additional property rental
expense.
Will I need to protect my employees in the event they are injured
on the job?
Yes, and in most states there are legal requirements that must be
met and for which you may be responsible. State laws vary, but most
states require that you carry some form of workers compensation
insurance. This protects the employee and also offers you, the business
owner, some immunity from lawsuit by an injured employee.
I work out of my home. Will my Homeowners insurance cover my
business?
No, it’s also important to know that no business liability
coverage is included in on a standard homeowner’s policy.
Additional coverage may be added to your homeowners policy or found
in a separate commercial policy. Talk with your agent and they can
review your current coverages as well as make suggestions for other
coverage.
Why do I need certificates of insurance from sub-contractors?
An audit may require you to show proof that sub-contractors had
their own insurance coverage. The sub-contractors’ certificates
of insurance will prevent you from being charged for their exposure.
Now that my business is established, I think it’s time to
offer my employees some benefits. Where do I start and what
do I need to know?
Employee benefits generally include health insurance (sometimes
including dental and vision benefits), term life insurance, and
sometimes a retirement program. Group disability insurance is also
available.
Employers can provide coverage for their employees alone or for
the employees and their families. Cost is usually the determining
factor when making this decision. With the high costs of health
insurance in the United States today, employers are more likely
to ask employees to pay some or all of the costs of health insurance
for their families and sometimes for the employees themselves.
Gather a list of all of your employees along with their dates of
birth and position in the company and give your agent a call to
get rates and discuss options.
For more information, email us at commercial@sternergroup.com
or give us a call at 1-888-STERNER
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