Frequently Asked Questions

How much insurance do I need to buy?
What is Commercial General Liability Insurance?
Does my policy include molestation & abuse coverage?
What are my payment options?
What types of property might I need to insure?
Do I need a commercial auto insurance policy?
What is business interruption coverage?
Do I need workers' compensation coverage?

Q : How much insurance do I need to buy?

There is no one answer to this because each business is different. You should consult with your agent/broker on the limits needed to cover your potential for loss. The limits we offer start at $100,000 /$300,000 up to $1 Million/ $3 Million, with the option to purchase up to a $5 Million umbrella.

Liability protection will certainly vary from business to business. In some states, courts tend to respond more positively to lawsuits, increasing both the likelihood of successful lawsuits and the amount of damages awarded. In today's lawsuit-conscious society, higher liability limits are extremely important and relatively inexpensive. Your agent/broker can help you decide how much coverage is needed for your particular business.

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Q : What is Commercial General Liability Insurance?

The CGL has three basic coverage parts:
  1. A.) Bodily Injury and Property Damage
    (claims involving injury to people or their property)
  2. B.) Personal Injury and Advertising Injury
    (offenses like false arrest, detention or imprisonment; malicious prosecution; wrongful eviction; or advertising activities that cause slander or libel, violates a right of privacy, or infringement of copyright)
  3. C.) Medical Payments
    (accidents of bodily injury, regardless of fault, that occur on your premises or because of your operations)

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Q : Does my policy include molestation & abuse coverage?

Yes, all our policies include this coverage, with limits up to $1 million.

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Q : What are my payment options?

Prior to putting any business insurance coverage into effect, we will require a down payment of typically 20-25% of the annual premium. The balance of the premium typically is paid via a premium finance agreement with 9 monthly installments.

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Q : What types of property might I need to insure?

Your business may not possess all the following types of property, but you can use this list to make sure that you have considered many of the property categories and any insurance coverage that may be warranted:

  •  •  Buildings and other structures (owned or leased)
  •  •  Furniture, equipment and supplies
  •  •  Inventory money and securities
  •  •  Records of accounts receivable
  •  •  Improvements and betterments you made to the premises
  •  •  Machinery, boilers, data processing equipment and media (including computers)
  •  •  Valuable papers, books and documents
  •  •  Mobile property such as automobiles, trucks and construction equipment
  •  •  Satellite dishes, signs, fences, and other outdoor property not attached to a building
  •  •  Intangible property (good will, trademarks, etc.)
  •  •  Leased equipment
To establish the amount of insurance you need on each, your agent/broker can help you review the types of property you own and their uses. Some of these items are covered in the basic policies. For others, coverage can be added by an endorsement. Some, like money and securities, may not be covered by a standard commercial policy and may require a separate policy.

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Q : Do I need a commercial auto insurance policy?

As a business owner, you need the same kinds of insurance coverage's 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.

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Q : What is business interruption coverage?

Business interruption 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).

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Q : Do I need workers' compensation coverage?

In general, you need to carry workers' compensation insurance if your company has employees. Without coverage, you may be sued by an injured worker for medical and disability costs, plus damages. Workers' comp requirements vary from state to state. Each state has its own workers' comp laws, as well as its own administrative and legal structure for handling claims and disputes. Not carrying workers' compensation insurance can impose hefty fines and possible criminal charges.

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