Q: What does business insurance cover?

A: There are many different types of business insurance. In general, business insurance protects the business against losses that could be caused by the company, employees, or in some cases, third party lawsuits.

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Q: Will insurance cover my business if someone sues?

A: Yes and no, as it depends on your policy. If the reason for the suit is criminal on the business’ side then you may not be covered. If you’re unsure what your insurance will cover in the event of a lawsuit, your best bet is to talk to your agent to confirm your policy’s coverage.

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Q: Do I need insurance to protect my part-time employees?

A: Yes. Anyone who is on your payroll needs to be covered by your insurance. Keep in mind, workers compensation is available to not just full-time, but part-time employees as well.

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Q: What kinds of property should I insure?

A: You should have business insurance for all properties associated with the business. All properties involve some sort of risk even if it’s undeveloped land. If someone injures themselves on your property, you need business insurance to make sure you and your business are protected.

Note: Your homeowner’s insurance may cover your business property if it’s added on like an in-home office. You will more than likely need an endorsement of your homeowner’s policy to take advantage of this. Speak with your agent to see if this applies to you and your business.

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Q: What is a Business Owners Policy?

A: A Business Owners Policy (BOP) is commercial insurance designed for small to medium sized businesses.

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Q: Who is insured under a BOP?

A: Small business, medium sized business are insured under a BOP for liability and property damage.

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Q: What types of businesses are not eligible for a BOP?

A: Large businesses, like corporations, are not eligible for a BOP.

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Q: What is umbrella insurance?

A: Umbrella insurance is known as excess liability coverage. Your Business Policy has monetary limits that will cover damages or losses up to a certain point. If your liability coverage maxes out but the damage/losses exceeds your policy’s coverage, umbrella insurance kicks in and covers the rest up the your Umbrella’s policy limits. Think of it as extra insurance to further protect you and your business.

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Q: What is covered under an umbrella policy?

A: Under an umbrella policy, bodily injury, property damage outside of the insured property, and personal liability are covered.

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Q: What is not covered under an umbrella policy?

A: Your umbrella policy will not cover damage to the insured’s property, injury to the insured, or any punitive damages.

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Q: How much umbrella coverage should I have for my business?

A: This depends on existing insurance policies and your level of exposure to risk. Talk with one of our agents to come up with the right amount for you and your business.

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Q: What is workers’ compensation insurance?

A: Workers’ compensation insurance helps pay for employee injuries that occur at and/or during work.

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Q: Who must be covered by worker’s compensation insurance?

A: All employees, not including the officers and owners, need to be covered. This includes your part-time employees!

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Q: What factors influence my workers’ compensation premiums?

A:The following factors can influence your workers’ compensation premiums: quantity of past claims and their nature, length of time you’ve had insurance, and payroll. If you have a larger payroll you have more employees which creates a larger risk.

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Q: How do I determine how much property insurance I need?

A: First, determine your exposure to risk. The more property, inventory, employees, etc. you have the more risk you’re exposed to and the higher your probability of a loss. Talk with an agent to calculate the exact amount of insurance needed to cover any potential damages/losses.

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