Just like insurance policies for your car and home protect your personal assets, our insurances safeguard your business and its resources. Depending on what kind of business you conduct, you may need additional insurance coverage, but every business should start with a proper insurance policy.
General Liability Insurance
This coverage, which may be complemented by additional policies like workers compensation or commercial vehicle insurance, addresses bodily injury, property damage, copyright violations, and legal expenses arising from lawsuits. While not legally required,
general liability insurance is crucial for safeguarding business assets. Its cost varies based on factors like coverage amount, industry, and prior claims history. Beyond general liability, businesses may need specialized
coverage such as product liability or professional liability.
A Business Owners Policy (BOP) is a bundled option covering basic business needs, including property and liability insurance. The article also emphasizes the deductibility of commercial insurance costs
as a business expense. Additional insurance options, like commercial property insurance, workers compensation, and commercial auto insurance, are recommended based on specific business needs. Understanding these
insurance options is crucial for comprehensive coverage and protection against potential risks.
Examples of Coverage
Example #1: A customer enters your small local grocery store. They go to grab something from a top shelf and all of the products fall off the shelf, knocking them on the head. Because you have general liability insurance, your insurance company will pay for their medical costs and cover your defense costs and potential settlement for the customer injury.
Example #2: You launch an ad that pokes fun at another local small business owner. They claim the ad caused them to lose business and sue you for advertising injury. Because your insurance company provides coverage for libel or slander and advertising injury, they'll cover associated claims.
What's Excluded?
General liability typically does not cover:
- Damage to company vehicles
- Injury to employees
- Professional mistakes, such as malpractice
These areas of coverage are also important, so discuss them with your agent to determine the best policies to meet your needs.
Commercial Property Insurance
Commercial property and casualty insurance, commonly known as P&C Insurance or commercial lines insurance, is a comprehensive business insurance category that encompasses commercial property and casualty coverage. Commercial property insurance safeguards
the physical structure and assets of a business against risks like fire, theft, natural disasters, and vandalism.
This coverage can be based on replacement cost or
actual cash value. On the other hand, casualty insurance provides liability protection, including general liability, workers’ compensation, errors and omissions, cyber liability, employment practices liability,
directors and officers liability, commercial umbrella, and commercial auto insurance.
These policies shield businesses from various liability claims, such as bodily injury, property damage, professional
errors, and cyber incidents. Often sold together, these insurance types are essential for businesses to mitigate risks and ensure financial protection in unforeseen circumstances. The cost varies depending on factors
like location, property size, building age, assets to be insured, and chosen coverage limits and deductibles. It is crucial for businesses to assess their unique needs and consult with an agent to tailor an appropriate
insurance package.
Examples of Coverage
Example #1: Your small business is located in California and it's been an especially dry season. Unfortunately, California is prone to wildfires. Your business property is destroyed in the fire. Your insurance company will cover the cost of rebuilding the property, income lost during the time period of rebuilding, and any equipment that was destroyed in the fire.
Example #2: Storms sweep through your area and a tornado touches down close to your small business. A tree has fallen through the side wall and part of your roof was torn off. Your insurance company will process your claim and cover the cost of repair to your commercial property.
What's Excluded?
Commercial property insurance typically does not cover:
- Damages resulting from natural disasters
- Delivery vehicle accidents might not be covered
These areas of coverage are also important, so discuss them with your agent to determine the best policies to meet your needs.
Business Owner's Policy
A Business Owners Policy (BOP) is a bundled insurance package that combines Commercial Property Insurance and General Liability Insurance, providing comprehensive coverage for small businesses.
This cost-effective solution includes protection against bodily injury, property damage, personal and advertising injury under general liability, and coverage for owned or leased buildings, equipment, and
business interruption under commercial property insurance. Businesses such as small restaurants, retailers, and auto repair shops benefit from a BOP, but it's crucial to consider additional policies like Workers
Compensation, Commercial Auto, Equipment Breakdown, Cyber Liability, and Professional Liability, depending on specific needs. While a BOP is typically an all-risk policy, exclusions include events like nuclear hazard,
military actions, and intentional illegal actions. Eligibility factors, including commercial property size and annual sales, influence qualification for a BOP. The cost varies based on factors like business size,
revenue, type, and coverage options chosen, with an average annual range of $500-$700. Riverstone Insurance offers assistance in obtaining affordable commercial insurance quotes for small businesses.
Examples of Coverage
Example #1: damage caused by flooding is not usually covered. So if you live in a flood zone, work with your licensed insurance professional in order to ensure that your potential flood losses are insured.
Example #2: Let's say a small bakery has a BOP. If a customer slips on a wet floor and gets injured (General Liability), or if a fire damages their baking equipment (Commercial Property), the BOP would cover medical costs for the injury and repair or replacement of the damaged equipment.
What's Excluded?
Below is a list of perils which are usually excluded from business owner policies:
- Nuclear hazard, Power failure, Military actions, Smog or pollution
- Loss of market, Decay, rust, or corrosion, Losses caused by animals
- Operations executed by the government
- Weather conditions (earthquakes, flooding, etc.)
- Water damage—including flood, seepage, or sewer backup
- and more...
These areas of coverage are also important, so discuss them with your agent to determine the best policies to meet your needs.
Commercial Auto Insurance
Business owners and contractors are urged to invest in commercial auto insurance, a specialized policy crucial for vehicles used for business purposes. Opting for personal auto insurance may seem cost-effective, but the distinct coverage provided by business
auto insurance becomes vital in the event of an accident, potentially saving a business from substantial financial loss.
Whether transporting goods, operating a food
truck, or carrying tools as a contractor, the absence of this coverage puts businesses at risk of significant expenses related to vehicle repairs, medical bills, lawsuits, and property damage. Commercial auto insurance
covers a variety of vehicles, including cars, vans, trucks, and specialized vehicles, offering comprehensive protection through features like liability coverage, property damage coverage, personal injury protection,
comprehensive and collision coverage, and more. The cost of commercial auto insurance varies based on factors like the type of vehicle, industry, coverage options, and the chosen insurance provider, with an average
annual range of $750 to $3,000 per vehicle.
Additionally, other insurance policies such as rideshare insurance, commercial truck insurance, tow truck insurance, fleet insurance, inland marine insurance,
and hired and non-hired auto insurance are available under the business auto category, addressing specific business needs. Riverstone Insurance aims to assist businesses in efficiently finding the right protection
by connecting them with suitable insurance providers.
Examples of Coverage
Example #1: Say you're a contractor using your truck for work. Personal auto insurance might seem okay, but if there's an accident, you could face big costs. Commercial auto insurance steps in for business vehicles, covering repairs, medical bills, lawsuits, and damage.
What's Excluded?
Below is a list of perils which are usually excluded from Commercial Auto Insurance:
- Intentional Acts
- Criminal Activities
- Employee Personal Use
- Unapproved Drivers or Vehicles
- Racing or Stunts
- and more...
These areas of coverage are also important, so discuss them with your agent to determine the best policies to meet your needs.
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