This form of coverage in business insurance has jumped into the spotlight due to the recent problems with recalls of products (well toys for most part) that were mainly sub-contracted to a foreign country. This form of coverage was not normally given attention in the past but for the benefit of retailers, convenience stores and wholesalers giving them protection from possible lawsuits for faulty products that they have sold but not manufactured themselves. The recent successive recalls of several toys that were faulty in design and used substandard materials highlighted the need for such protection when angry customers came into retail stores claiming damages in its many forms and shapes.
As we have said, Business Insurance takes many forms and shapes and here are some of the most basic coverage that may be included in most policies. Property Insurance is protection of property (which is usually a building or some other structure and it’s contents) this is to prevent the loss to your company incase of equipment loss due to crime and other factors. Business interruption covers the loss of the company’s ability to produce products due to fortuitous (unforeseen events either by man or nature) events and the last would be liability protection which covers all liabilities your company towards others outside the organization. The last can cover the results of any defective products or failed equipment and flawed installation and many others.
By: Govy
The success of a business operation is dependent on hard work. However, no matter how industrious people are, one disaster can wipe out the profits and even destroy the business. The key in making sure that all the effort and money invested in a business doesn’t disappear when a disaster happen is to protect it with the appropriate insurance.
There four fundamental coverages in a basic business insurance package namely: the workers’ compensation, the general liability, the auto and property/casualty and an added layer of protection over those, often called an umbrella policy. In addition to these basic needs, it is also important to consider purchasing business interruption coverage, life and disability insurance to ensure complete protection of the operation of the business and the welfare of the people.
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Well, the problem is, this is a PARTNERSHIP. It works with the voluntary consent of the other. If it was a corporation, you can certainly sue the corporation for cancelling it, and you would most likely win the case. You would probably get a judgement against them. If it’s legally a PARTNERSHIP, and you’re a partner, technically, he’d be suing himself as well. Also, if this was an individual health policy, one would receive no liability – only if it was a GROUP policy.
By: Govy
Your property is your investment and it is very important to provide your property an insurance. Property Insurance covers your business for damage or loss of your business property. A good property insurance policy covers property fixtures, such as lighting systems or carpeting; equipment and machinery; office furniture; computers and accessories (monitors, CD-ROM drives, modems, printers); inventory and supplies; and personal property that’s kept at the business site.
In establishing what property is covered under a property insurance policy, it is also important to understand which types of losses are covered. A basic form policy commonly covers the following: fire, explosions, storms, smoke, riots, vandalism and sprinkler leaks. While a broad form policy typically adds damage from broken windows and other structural glass, falling objects and water damage to the list of covered items. Special form policy covers the widest range of protection including theft, unless it is specifically excluded from the policy.
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Get to work with your agent so you get the best possible coverage for you and the vehicle (most company’s get volume insurance for their service fleets). If you just happen to be the business owner you must specify the details of the vehicles use so the insurance company has knowledge of the dual role the vehicle plays both for the business and your own use. Remember, there are distinct differences between personal and commercial vehicle insurance policies so do ask your agent for they vary from provider to provider. There are also very strict state and federal government requirements regarding auto insurance so get yourself protected from hefty fines and even jail time by getting enough coverage.
Commercial auto insurance sounds basic enough and looks simple that it is very much similar to personal auto insurance you have for your car. There is in fact a huge difference for most companies have service fleets that they give company vehicles to their people for use making the company’s car also serve for personal purposes. This kind of complicates things a bit for regardless of who is using the vehicle, the fact that the primary owner of the vehicle (the guy who bought it) is the company, it becomes official office property even when the vehicle is being used on weekends or after work for personal purposes. On the commercial vehicle insurance policy, the primary insured should be the company and not you so no problems arise when a claim is to be filed with the provider.
The concept is similar to pay as you drive and it takes into the account the distance you travel as one of the items on your policy. Through self-reported mileage reports you send in form time to time, the insurance firm establishes the relationship between your insurance premiums and the distance traveled making for affordable and adequate insurance coverage. Trending is established after a few months and with higher mileage comes a well oiled vehicle, meaning it is well maintained enough to get you lower premiums. Pay as you drive differs little, adding the factor of how much travel time and how well you use your car, based on your needs choosing public transport over the car for short trips and using well planned routes for long trips, all making for one lean machine and a mean insurance coverage to match.
It may seem impractical and unnecessary for small businesses to avail business insurance, but it really doesn’t matter what size the business is.
While it may stand to reason that big businesses do need business insurance due to the large number of assets that they have, it is still important for small and medium sized businesses to protect their investments and assets by availing business insurance policies. After all, the premiums and fees depend on the number of assets that your business has, so if you don’t have much, then your premiums won’t be too hefty as well.
Regardless of the size of your business, it is always the more practical choice to always have some sort of safety net for you to fall on when things fall apart.
Marketwatch.com recently posted the disturbing news that small business owners are not fully aware of the financial risks involved in obtaining workers’ compensation insurance through self-insured groups. This is according to the results of the most recent Small Business Opinion Poll conducted by Opinion Research Corporation (ORC) of Princeton, N.J. According to the survey, most small business owners and managers are not aware that they could be legally and financially responsible for the entire costs of workers’ compensation claims owed by their self-insured group. Among the possible financial dangers associated with self-insurance are: failure of the largest company in the group, successive years with serious injuries, and the responsibility for paying out claims for up to five years–even if a small business leaves a group. Self-insured group members also assume “joint and several liability,” sharing liability among members on a pro-rata basis. For example, in a worst case scenario, a small business which pays 8% of the contributions to the trust set up to pay injured workers would, if the trust develops a deficit, be liable for 8% of all injured workers payments for the life of their claims.