What if I have an In Home Business?
Your Homeowners policy excludes coverage for a Home Business so you should always notify us of
any Business ventures in the home. An endorsement can be added to your Homeowners Policy to
provide extra coverage for your activities and/or business contents.
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Just starting a business, do I need insurance right away?
Yes, it is important to get insurance the first day of your business. If you are renting a space, landlords
will require that you have insurance, insuring your Business Personal Property and General Liability. The
proof of insurance is usually forwarded by us to your landlord via a Certificate of Insurance. Workers
Compensation is statutorily needed as well.
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Is insurance coverage different for different businesses?
All businesses vary, so it is impossible to have a standard policy to cover all types of businesses. Also
some businesses, regardless of their size, do not fit the profile of a standard Business Owners policy (BOP).
For example, garages have special liability needs that are not met in the standard Business Owners policy.
We can find the best coverage and policy to protect you and your business.
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What type of property do I need to insure?
Your business could have some of the following types of property that should be insured, such as Building and
other structures , furniture, equipment and supplies, inventory, improvements and betterments, machinery,
boilers, records of account receivables, valuable papers, signs, fences and other outdoor property not
attached to a building, computers and media, leased equipment. You can use this listing as a reference to
consider all your property coverages that you may need and we can help you establish the amount of insurance
you may need on each.
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What is Business Personal Property?
BUSINESS PERSONAL PROPERTY is all your Furniture, Machinery, equipment, "Stock", all other personal property
owned by you and used in your business, personal property of others in your care custody and control and
leased personal property in which you have contractual responsibility. Business Personal Property coverage
pays for direct physical loss of or damage to Covered Property subject to exclusions.
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If I rent office space in a building, do I need to insure my Business Personal Property?
Yes, insuring your building or your contents in a building you rent or lease is important. Some of the factors
you should consider when evaluating what and how much to insure: What is the cost to replace the property in
the event of a total loss? How likely is it for the value of your property to fluctuate? Will inventory vary
over the course of the policy year? Do you have peak season? Is your property subject to any unique causes of
loss? Do you have perishable inventory?
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What is D&O coverage?
DIRECTOR & OFFICERS LIABILITY INSURANCE (Also known as D&O coverage) protects the
Directors and Officers of a company for negligent acts or omissions, and for misleading statements that result
in suits against the company, often by shareholders. Directors and Officers (D&O) insurance policies
usually contain two coverages:
- Personal coverage for individual directors and officers who are not indemnified by the
corporation for their legal expenses or judgments against them - some corporations are not required by their
corporate or state charters to provide indemnification; and corporate reimbursement coverage for indemnifying
directors and officers.
- Entity coverage for claims made specifically against the company may also be available.
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What is EPLI (Employee Practices Liability Insurance) coverage?
EMPLOYMENT PRACTICES LIABILITY COVERAGE is Liability insurance for employers that covers employers for alleged
wrongful termination, discrimination, or sexual harassment charges made by the insured's employees or former employees.
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What happens to my equipment and/or inventory not typically at my named location?
Certain businesses take their tools and equipment with them, such as Contractors, repair or service businesses and
certain manufacturer rely on equipment that is off-site. Also, companies can be at risk for equipment stored off
premises or in transit. We can design a policy that will insure this type of property is covered anywhere in the world.
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Who has to provide workers' compensation insurance?
Most states require that you carry some form of workers compensation insurance. An employer may be an individual,
partnership, joint venture, corporation, limited liability company, association, or a fiduciary such as a trustee,
receiver or executor, or other legal entity.
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Can the insurance company cancel my Workers Compensation policy mid-term?
Yes, the insurance company can cancel a policy mid-term for one of the following reasons only: non-payment of premium,
fraud or material misrepresentation, or substantial increase in the hazard being insured.
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Do I need a Business Auto policy for my company-owned vehicle?
Yes, you will need a business automobile policy, whether you have one company-owned vehicle or several being used for
company business. The policy covers any motor vehicle used in your business including cars, vans, trucks and trailers
pulled by trucks and offers coverage if they are damaged or stolen. It also covers liability if the business vehicle
is in an accident which cause, Bodily Injury or Property Damage.
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What do the numbers mean when reading liability limits, (##/##/##)?
First number: bodily injury liability maximum for one person injured in an accident.
Second number: bodily injury liability maximum for all injuries in one accident.
Third number: property damage liability maximum for one accident.
Note: CSL = Combined Single Limit. Therefore coverge of this type includes all liabilities mentioned above - up to the CSL.
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How does liability insurance coverage protect my small business?
There are many different types of third-party liabilities to be covered for a business. Business liability insurance may
protect you from claims arising from someone's bodily or personal injuries. Other items that could be covered are damage
to the property of others, products-completed operations, advertising, premises operations, fire, legal liability and
related legal defense costs. For instance, liability insurance will not only pay the cost of covered damages but also the
attorney fees and other costs associated with your defense.
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What exactly does the term "bodily injury" in a liability insurance policy mean?
This refers to the injury, sickness, disease, or even death, of any person that occurs during the policy period.
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What does "personal and advertising injury" mean in general liability insurance coverage?
Personal and advertising injury means being responsible for libel, slander or any defamatory or disparaging material,
or a publication or utterance in violation of an individual's right of privacy; wrongful entry or eviction, or other
invasion of the right of private occupancy; false arrest, wrongful detention, false imprisonment, or malicious prosecution;
which occurs during the policy period.
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What does workers' compensation insurance do?
Workers' compensation pays for the rehabilitation, recovery and medical bills of employees work-related injuries, as well
as lost time when they are unable to work because of a work-related injury. Workers' compensation is not a substitute for
health or medical insurance, since employees are only covered for on-the-job injuries.
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How much does workers' compensation insurance cost?
Workers' compensation pricing is based upon your employee payroll, the number and job classification of the employees,
classification of your business and past loss experience. The employer pays for the cost of the workers' compensation.
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What is a business owners' policy or a "BOP"?
A BOP is a customized policy for small businesses that combines property insurance and liability insurance in one policy,
and generally includes additional coverages at little or no additional premium. So it allows you to have broad coverage
at affordable premiums. Most insurance carriers have customized BOPs for particular industries and services.
Even if you have a BOP, though, most small business owners should consider adding coverage for conditions that might not
otherwise be covered. Additional coverages tailored to your industry are often available, such as temperature changes,
equipment breakdown, or computer equipment failure.
A business account specialist at Desmond Bros. can advise you on what coverages
your small business needs.
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