What is Business Auto Insurance and Do I Need it?
Motor vehicle accidents are the leading cause of work-related deaths.
You'd never think about not having your personal car insured.
It's the law, after all...
But what about your business vehicle?
You need insurance for it just like you need insurance for your personal vehicle.
But how do you know what you need?
Keep reading to learn everything you need to know about business auto insurance.
What is Business Auto Insurance?
If you own a business where you or employees do any amount of driving, you need business auto insurance.
Commercial, or business, auto insurance, is insurance for a vehicle that you or an employee is driving when conducting business.
If you have an accident while conducting business, commercial auto insurance covers the costs.
This insurance kicks in when you're at fault for the accident.
It will cover the vehicle and medical expenses.
The insurance will cover expenses even in the event of a fatal accident.
Like all insurances, not all business auto insurance policies are the same.
To know what you need, you must compare policies the same way you would compare policies for personal auto insurance.
Do I Need Commercial Auto Insurance?
Just because you own your own business, you do not have to have commercial auto insurance.
However, if you or our employees drive for work, consider it.
If you own, lease, or rent any vehicle such as a car or truck, look into this specialized auto insurance.
Do your employees drive their own vehicles to do business?
Or do your employees operate your vehicles?
Even if you lease or rent a vehicle, consider commercial auto insurance.
Auto accidents happen in the blink of an eye.
Having car insurance for your business protects you from lawsuits and liability should those accidents happen under the umbrella of your business.
What Does Business Auto Insurance Cover?
Business auto insurance will cover anything a regular auto policy would cover.
It kicks in when you're using a vehicle to conduct business.
So if you're just driving to work and back home but do not drive for your actual job, then you do not need commercial auto insurance.
However, if you have a business that requires driving, such as visiting clients or hauling freight, then you need commercial auto insurance.
Protect Your Business and Employees
In the same way, the insurance protects you when you drive, it will protect your business when either you or your employees drive.
If your employees happen to hit a pedestrian when driving a business vehicle, your insurance will cover the pedestrian's medical bills.
If you plow over a residential mailbox after you lose control on an icy road, commercial auto insurance will cover the damage of your vehicle and the cost of replacing the mailbox.
The insurance will cover more than just two-vehicle collisions.
But it does still cover those.
You can purchase auto insurance for any vehicle your company uses.
Car insurance for your business will cover anything from a sedan for business trips to a cargo truck that hauls your freight.
Types of Protection
Your business should already have liability insurance.
General Liability Insurance or Professional Liability Insurance will protect your business from any lawsuit-happy individuals.
Commercial auto insurance offers specific protection in addition to general liability.
It covers four major things.
1. Auto Liability
If your business vehicle causes any property damage or bodily injury, business auto insurance kicks in.
It also pays for accident-related legal expenses.
So if either you or an employee hit a pedestrian, as mentioned above, and the pedestrian attempts to sue your company, the business auto insurance kicks in to cover legal expenses.
2. Medical Payment
If you're on a business trip and have an accident, your business auto insurance covers the cost of your medical bills.
It will also cover the cost of medical bills for anyone else in the car.
Good business auto insurance covers medical bill costs regardless of who is at fault for the accident.
3. Physical Damage and Collision
Commercial auto insurance covers more than just damage because of a collision.
If someone attempts to damage your car, this insurance covers the cost of repairs.
So if you're on a business trip and staying at a hotel, and someone vandalizes your car or damages it, commercial auto insurance will normally pay for those damages.
If you are traveling and end up in the middle of a hailstorm that causes thousands of dollars worth of damage, commercial auto insurance kicks in.
4. Uninsured Motorists
Unfortunately, many people drive without insurance.
A 2017 study conducted by the Insurance Research Council revealed that approximately one in every eight drivers in the United States was driving without insurance.
If individuals cannot afford to pay for car insurance, they cannot afford to pay for your damages.
Your commercial auto insurance policy will cover your damages and medical costs even if they result from a collision with an uninsured motorist.
Big Trucks Require Insurance
If your business does any work that requires larger vehicles, you actually must have commercial auto insurance.
This includes the following vehicles:
- Box trucks
- Food trucks
- Work vans
- Service utility trucks
Any other truck usually does not just need insurance, but it often requires business auto insurance.
As you explore the world of automobile insurance for your business, you may hear different terms.
Ultimately, the words commercial vehicle, business auto, commercial auto, truck and fleet insurance all refer to the same insurance.
Drive Safe, Drive Insured
Now that you understand all the ins and outs of business auto insurance, you can start looking for the best policy for your company.
For all of your insurance needs, contact us.
What Is Commercial Business Insurance? Plus 5 Key Benefits
Take a moment and think about all the hard work you’ve put into your business.
Consider the time it took to start, the energy you've expended and the funds it took not just to start but run successfully.
A lot, right?
By all means, you want to protect your investment, and this is exactly where commercial insurance comes in.
Commercial insurance is among the most important insurance policies you can have for your business.
But what is commercial insurance anyway, and why do you need it?
What is Commercial Insurance?
By definition, commercial insurance is coverage for a business.
It serves as protection against losses through unforeseen problems such as theft, property damage, liability, injured employees, workers' compensation, or any business interruptions that are not planned.
What Does Commercially Insured Mean?
When a business is commercially insured, it means that it’s protected from all the above problems that may happen as long as the coverage is in force.
An insurance policy from a professional insurance company will always cover your business, regardless of the issues you face.
How much coverage you pay for depends on the commercial insurance you have.
Different Types of Commercial Insurance
Many types of commercial insurances can help protect your business from potential lawsuits, lack of compliance and losses.
Let’s look at some of the most popular commercial insurance policies.
Business Owner Policy
The business owner policy (BOP) bundles up several types of business protection into one, and it’s usually very affordable.
However, workers' compensation, auto insurance and liability insurance are not included in the bundle, so consider the characteristics of your business to decide if BOP is the right policy.
Business Property Insurance
Property insurance covers damages to the business properties that include the structure where you conduct your business and inventory, including products, documents, warehouses, machinery and furniture.
General Liability Insurance
Businesses have a lot of liability.
Most businesses need general liability insurance, which covers an array of damages, from injuries to lawsuits and everything in between.
Commercial Auto Insurance
If you have business vehicles, commercial auto insurance will come in handy.
Your premiums will be determined by the type of vehicles you use, and the risks associated with the items you transport in those vehicles.
Workers' Compensation
If you have employees, you undoubtedly need workers' compensation to cover them if they get hurt on the job.
Most states mandate businesses with employees to have this insurance, but even if your state does not, it’s very important.
Other Types of Commercial Insurance
There are many other types of commercial insurance policies, which include:
- Crime insurance
- Commercial umbrella insurance
- Cyber liability insurance
- Equipment breakdown insurance
- Business interruption insurance
- Accounts receivable insurance
5 Top Benefits of Commercial Insurance
Running a business always comes with inherent risks.
Employees could get injured in your business, clients can file lawsuits and natural disasters could happen.
For these and many other reasons, it’s crucial that you get business insurance for your business.
Here are the top five benefits of carrying commercial insurance.
1. Prevents Business Downfall
What would happen in case of a natural disaster?
What if a fire broke out in your business and burns everything, from the building to office property?
How would you carry on with business?
Property insurance will help you start over, and business owner’s insurance will help you cover income loss.
2. Makes the Business Look Credible
Most consumers do their research before conducting business with a company, and one component they check out is whether a business is insured.
Business insurance assured clients that you are a credible business, and it’s safe doing business with you.
Most companies advertise as “licensed, bonded and insured” because it builds trust, and trust is crucial to the success of a business.
3. Protects the Employees
The most valuable asset your business has are the employees, not the products or the properties of your business.
Most business owners think it’s the equipment they take such good care to maintain and the brand they have built for years.
While all these are important, they are not possible without employees.
Protecting your employees is a crucial step that you must take by getting workers’ compensation insurance.
If you could also get disability insurance, then it will be just as beneficial for your business.
Protecting the employees also means protecting the company from liability claims and lawsuits.
Insurance also helps attract and retain qualified employees.
Most job seekers are always on the lookout for benefit packages that include health, life, disability and long-term care insurance.
If you have commercial insurance, your employees are provided protection.
4. There is Always a Possibility of a Lawsuit
We are living in a very litigious world where people get sued left right and center.
One broken contract, one accident, or one disgruntled employee and your business could go down.
Even if you were to win the lawsuit, the cost of legal defense could drag your business down.
You will always worry when something happens, but with liability insurance, you can save yourself the trouble and run your business without worry.
5. Contracts Require Insurance
If you intend to rent your business facility, you’ll need insurance, and if you intend to take business loans, the lenders will need your business insurance.
Some client contracts may also require insurance in case things go wrong, so business insurance is very important.
Commercial Insurance Summary
It’s safe to say that the future is unpredictable, and anything can happen.
It will be beneficial to you and your business if you have commercial insurance to back you up.
So what is commercial insurance?
It’s undoubtedly something you must get for your business.
Do you have more questions about commercial insurance?
Would you like to know more about which types of insurance will best suit your business?
How about you get in touch with us, and we’ll guide you through it.
You may also check out our website for more information about insurance.
Takin' Care Of Business: Find The Best Business Car Insurance
In the US, the national average car insurance cost is $1,365. Auto insurance is crucial mainly if you use your vehicle for business. Most business cars have to be in several locations in a day.
If you use your vehicle for commercial purposes, consider business insurance because of the high exposure to risks.
Is it time to purchase business car insurance? Let us help you make the right choice.
Keep reading to learn how to find the best business car insurance.
Compare Policies
Compare policies from three credible auto insurance firms before signing any deal. The process allows you to analyze the pros and cons of the insurers.
You will invest your time at this point, but it will save you some money at the end. By analyzing companies, you have the advantage of identifying cheap business car insurance.
You can also work with a firm that has desirable features. Take time to ask all the right questions regarding your vehicle coverage.
Start by listing national and regional auto insurance companies. Get a business car insurance quote from each of the companies and make a comparison to see what works for you.
Don't forget to include the deductibles to get a comprehensive budget.
Minimum Insurance Requirements
You need business insurance in any industry. In the car business, having insurance is non-negotiable.
Different states have their minimum requirements on commercial auto insurance. The coverage is useful in case you get into a collision, vehicle vandalism, or theft.
Apart from Virginia and New Hampshire, you must have a car business policy if you use your truck or van for commercial purposes in the US.
In Virginia and New Hampshire, you need to show that you’re financially capable of paying for damages without insurance. The minimum insurance requirements for a business car are almost similar to personal car insurance.
Yet, your personal car insurance can never be adequate to cover the risks of a commercial vehicle.
Auto Insurance Discounts
Businesses spend billions on commercial vehicle insurance each year. Fortunately, some insurers have an array of discounts and deals that will allow you to save on car insurance.
You can use the rebates to get the best commercial vehicle coverage. If you have a fleet of vans or just a few trucks, the discounts will allow you to save on insurance.
A commercial insurance broker can guide you on reasonable insurance discounts. You don’t have to worry about spending a fortune on business car insurance.
Some insurers will offer you up to a 5% auto insurance discount if you've been in business for over three years.
Your loyalty to a specific auto insurance company will also earn you discounts. Also, you can save up to 15% if you pay your commercial auto insurance in full.
Be Honest
Low rates are enticing. But with commercial auto insurance rising premiums shouldn't prompt you to forge numbers. In the end, you might suffer the consequences when you need compensation.
Some drivers underestimate mileages so they can pay lower premiums.
Leaving drivers off of the policy is another strategy car owners use to save money. While it is tempting to connive your way around, resist.
Your insurer will render your policy inapplicable because the price you’ve been paying doesn’t cover the damages. You’ll lose more than you expected to save.
Besides, your reputation among car insurance companies will be at stake.
Work With Top-Rated Car Insurers
Commercial car insurers have their distinct ways of dealing with payments and claims.
You can work with a small or big company. National insurance is likely to have an enticingly cheap business car insurance quote.
But when addressing your issue, you might have to wait longer because of the large volume of claims.
Conversely, a small insurance company might be slightly more expensive, but the personalized experience you get is worth the money.
Research your desired insurer based on your budget and the experience you expect.
Online reviews can be a great place to start. You can request referrals from experts in the commercial auto insurance industry.
Review Your Coverage
About 29% of traffic deaths involve car occupants.
When a car crashes, the occupants, other road users, and surrounding property are at risk. It is crucial to have comprehensive commercial auto insurance.
So what does business car insurance cover you for?
With this policy, the coverage includes bodily injury, property damage, medical payments, and uninsured motorist coverage. Commercial auto insurance can also include comprehensive and collision coverage.
The bodily injury liability insures the driver of a business car.
The cover pays for any medical expenses, lost income, or funeral expenses. The property damage liability pays for the replacement or repair of vehicles.
Review your insurance to know the extent of coverage.
You can't make claims for a collision compensation if the coverage doesn't extend to such services. Research wide and analyze your policy critically to know how you stand to benefit.
Check Out Crash Repairs
A credible business car insurer should guarantee you high-quality replacement parts.
Some scrupulous companies can contract any manufacturer to maximize on profits. Insist on OEM car parts.
Some repair shops consider cheap car parts that don’t fit well and are prone to rust. These replacements hardly meet the federal safety requirements.
You might end up spending a fortune if you fail to work with credible insurance companies.
Business Car Insurance Is Indispensable
When you are thorough with your due diligence, you will get a great deal for business car insurance.
Compare companies and rates to save on your commercial auto insurance. The coverages are distinct for each firm.
Don’t focus solely on the cost. Car insurance policies have several features that differentiate them from each other.
Read each company’s insurance policy to ensure that you get what the coverage entails.
If you need business car insurance, contact us for a quote.
9 Ways Commercial Insurance Brokers Can Help Your Business
If you are trying to run your commercial business properly, it's important that you opt for an insurance policy that will protect you.
Commercial insurance brokers are an essential ally that you'll want to have on your side when trying to build a solid foundation. They will match you up with a commercial insurance plan that will protect your company from its liabilities.
Use the tips in this article when deciding if you need to hire a commercial insurance broker.
1. They Can Expose You to Different Options
Options are your best friend when you're trying to find the best insurance plan. When you talk to brokers, you'll get access to many policy options that will suit your needs.
They have deep relationships with carriers in the insurance business and can help you find deals that aren't advertised. Brokers will also talk to you about the business you run and liabilities you have so they can match you with the ideal coverage for your needs.
It's important to get business liability insurance to protect you from anything that goes wrong while doing business with your customers. The more options you have, the better you can protect your company.
2. They Can Protect Your Office and Other Property
When you need a commercial insurance plan, be sure to look after your office building. Your physical office building is one of your most valuable assets, and you'll need a policy that covers it inside and out.
A quality insurance plan will make sure the building keeps its value, and that you can account for changes in the market.
3. You Can Insure Your Business Cars
If your company makes use of vehicles, commercial brokers will match you up with the best car insurance policy.
They will help you build and protect a fleet, and will ensure that you get repairs to the vehicle when needed. Your broker will also go the extra mile to get you extras like roadside assistance and preventative repairs.
Since car insurance policies vary, a broker can find you the best prices by bundling.
4. Brokers Offer Sound Advice
Above all, commercial insurance brokers see the big picture and can offer you advice as your business grows. When your company expands and changes, so too will your insurance needs.
These brokers can give you advice that can help you with your company's financial future and will make sure you always have the right amount of insurance at an affordable rate.
5. These Professionals Provide Protection Against Cyberthreats
Cybersecurity is a crucial point of interest today, as it has cost businesses trillions of dollars in damages and losses.
When you have access to a broker, they will always make sure you have recourse against cyberthreats. If you have protection from ransomware, malware, information breaches and other matters, it'll be easier for you to stay safe and protect your customers.
Today's business plans account for cyberthreats, so include enough coverage in your plan to account for downtime and data protection.
6. They Will Strengthen Your Company's Human Resources (HR) Department
Your human resources (HR) department administers employee benefits and managing your company's coverages.
When your human resources manager has a broker they can communicate with regularly, they'll always be ahead of the curve in the industry and will be empowered to protect your company. This strengthens your company's foundation as a whole.
7. You'll Get Insurance Issues Handled In a Quicker Timeframe
Since insurance brokers are opening their resources to you, your business can always count on speedier service.
Whether you need to buy a new plan, change your current plan or file a claim, brokers can speed the process along and handle the details with more specificity.
This quick turnaround time makes your business more efficient and lets you always stay covered. Your company's resources will be used more wisely, and you'll be better able to keep your attention on your areas of expertise.
8. They'll Help You Account for Emergencies
Your company can deal with emergencies better when you have access to a dedicated broker.
Whether you're dealing with outages, municipal problems or other issues that you couldn't have accounted for, a broker can speed your claim along enough to address these emergencies. They can help you stop the bleeding and get back to business as usual.
9. Insurance Brokers Can Assist You With Building Repairs
Your workspace needs a facelift now and then if you want to keep high property values and keep the building up to date. If you need any major repairs or renovations, always reach out to a broker first to weigh your options.
They can help you plan with contractors and find the best deals so that your building is fixed in a way that is productive and cost-effective. This comes in handy when you want to handle upgrades that make your building more green friendly.
Hire the Best Commercial Insurance Brokers
When are you looking into a policy, hiring commercial insurance brokers is crucial. These are just a few ways they can help.
If you are trying to shore up your insurance needs, our brokers would be happy to talk to you further.
Take the time to contact us today to see how we can help.
Cyber Liability Insurance Cost: Why It's Worth Your Money
In 2018, the average cost of cyber crime in the United States was $27.37 million.
Unsurprisingly, more businesses across the country have been looking for ways to protect themselves against cyber threats. One such way is by opting for a cyber insurance policy.
But what is cyber liability insurance? Is the cost of cyber liability insurance worth it?
Cyber liability insurance is a kind of insurance that covers your company’s liability in the event of a data breach involving sensitive client information. That information includes account numbers, Social Security numbers, credit card numbers, health records and driver’s licenses.
Cyber insurance is one of the leading types of insurance that every business owner needs. We've compiled several reasons to show you why taking this coverage is worth every penny.
1. Cyber Insurance Helps Offset Expenses of A Data Breach
Cyber liability insurance is often referred to as data breach insurance, as the focus of this policy is to protect your company in case of a data breach.
But what is a data breach?
One definition states that it’s an incident involving illegal or unauthorized access, viewing or retrieval of data by an individual, application, or service. This security breach is aimed explicitly at stealing or publishing data to an illegal or unsecured location.
Every company that handles and saves a customer’s personal data definitively needs cyber liability insurance. Because data breaches are unpredictable, they can be difficult for a business to budget for them. Every data breach differs in scope, size and complexity.
One instance of a data breach can prove costly, given the potential fines from multiple regulatory agencies, among other parties. Cyber insurance can help your business meet all unexpected costs, including data analysis, communication and legal settlements.
2. It Covers the Cost of Business Interruption
How do you deal with a disaster that cripples your computer systems, halting your ability to transmit data? Such an event could cause you or a third party that relies on your services to lose revenue as it affects a business’ day-to-day operations.
How?
Well, the time and resources that you usually spend on your normal business operations now go towards rectifying the problem, which might lead to additional losses. Recently, hackers have increasingly specialized in denial of service attacks, blocking a company's access to specific websites.
Should a sudden interruption occur in your business operations, cyber liability insurance coverage can help you out.
3. You Get Cyber Extortion Defense
Imagine that one day, you try to access vital information from your servers, only to find that it's been held for ransom. How do you deal with the situation?
Unfortunately, these incidents have been on the rise. One of the most prevalent forms of cyber extortion involves the use of ransomware. Ransomware and other malicious software is designed to take and hold your company's data until you pay a fee to the hackers.
One way businesses prepare for cyber extortion is by acquiring cyber liability coverage, so it's easier for them to recapture losses when they become victims of the crime.
4. Cyber Insurance Provides Forensic Support
How do authorities deal with cases of data breaches?
An important step is to investigate the source or cause of the attack. The investigation-related expenses, expert help, and consultation fees can add up to a lot of money. With cyber liability insurance coverage, you can get reimbursed for these expenses.
5. Your Business Gets Legal Support
Following a data breach in your company, you can expect that there’ll be some legal activity. With cybersecurity insurance, you can expect appropriate legal help and advisement.
First, you can expect that there will be privacy lawsuits that claim your business breached the privacy of your clients or staff. It's highly likely that there will be fines from various regulatory bodies. Claims of breach of contract or negligence may also arise.
Most times, companies who've been the victim of a data breach also face media liability claims, including copyright infringement, slander or libel.
6. Cyber Insurance Covers You Where Your General Policy Won't
Now that your business already has general liability insurance, why does it make sense to take cyber liability insurance?
Aa general liability policy specifically excludes any losses that a business incurs because of the internet. Therefore, cyber liability insurance picks up where your general liability insurance coverage leaves off.
To give yourself cyber liability coverage in as many positions as possible, ensure that your policy covers mobile devices and laptops.
How do you go about getting the most seamless coverage you can? The best way is to integrate your cyber liability with employment liability policy and general policy.
7. Cyber Liability Insurance Cost Is More Affordable Than You Think
If you asked many business owners why they didn't have cyber liability insurance, a good percentage would say that it's because they thought it was costly.
Sure, there are policies as high as $30 million. But even businesses that want cyber insurance policies with annual premiums of $2,000 can get them. It all comes down to your specific needs and what you’re prepared to pay.
Compared to most other types of business insurance, cyber liability is a fairly new concept. Therefore, there are many variations among policies and lots of room for you to negotiate.
Pick Your Cyber Liability Insurance Policy Today
As technology becomes indispensable for successful business operations, companies now see the value of a solid cyber liability insurance cover. The risks of modern technology are evident everywhere, and cyber insurance helps address them when other policies simply won't.
As a business owner, you have the freedom to choose what level of coverage you need based on your operations and range of exposure. The one undeniable fact, however, is that cyber liability insurance cost is well worth it.
7 Types of Insurance Every Business Owner Needs to Prevent Losses
If you own your own business, you're in a select group. Estimates differ, but somewhere between 10-16% of Americans own businesses.
Owning a business can be difficult, and a lot goes into it. Not only do you have to figure out who to hire, how to handle records, and figure out how to keep things afloat, you also need insurance.
What kind of insurance do you need, though? What are the different types of business insurance and why are they important? We'll answer those questions in the paragraphs below.
Watch our video summary below:
1. Business Liability Insurance
Of all the different types of business insurance, one of the most essential is business liability insurance. This basic type of insurance is designed to protect your company should anything happen to a client or other third-party because of your products or policies.
You may wonder why you need this, especially since you don't have any intention of hurting anyone. Sometimes, you don't have to. Incompetence and even product tampering can happen at any level, and will always have consequences.
If you lived through the 1980s, you may remember something known as the Tylenol Poisonings. Back in 1982, somebody could slip poison into various Tylenol capsules after they left the factory, resulting in several deaths.
Nobody ever found out who the perpetrator was, but it left the nation reeling and changed the way we sell various products.
There are also insurance fraudsters to worry about, and the small chance that something harmful slips under your radar and makes it to market.
2. Product Liability Insurance
Much like business liability, product liability insurance protects you in case your product harms someone or damages their property.
It differs from business liability because it's more specific. While business liability can include everything from a faulty product to slipping on a wet floor while walking through the store, product liability is more specific.
Product liability protects the businesses in cases where a product is responsible, or is believed to be responsible, for the incident that occurred.
This case can ruin a small business, even if you aren't found responsible. That's because the legal fees in these cases can mount, and you may have to pay them even if you win.
3. Business Interruption Insurance
Business interruption insurance helps to cover your business from a natural disaster. Natural disasters can wreak havoc on a business, and you may even have to repair or rebuild your store.
When this happens, it will put your business on hold, which eliminates one source of income, perhaps your only one. Business interruption insurance helps to cover some expenses until you can get your business running again.
The bad news is that it doesn't always cover everything, and many businesses go under despite insurance. You can help remedy this by having a disaster plan in place and investing in a building that's better at withstanding extreme weather.
4. Commercial Auto Insurance
If your businesses use any company vehicle, insuring it is an absolute must. Commercial auto insurance protects the company in case of a crash.
Note that this insurance only covers company vehicles. If your business doesn't have a company car or your employees carry out business in their own cars, commercial auto isn't necessary.
It also isn't necessary if you use third-parties to carry out tasks, because commercial auto doesn't cover third-party vehicles.
5. Property Insurance
Property insurance covers various types of damage done to a business, including certain weather events. However, floods, earthquakes, and other natural disasters are generally not included.
Not only does it cover the business itself, but it also covers many forms of property inside the building. For instance, tables and chairs would be covered if a restaurant was damaged.
6. Workers' Compensation
While every business owner wants to keep their employees safe, it isn't always possible. Even the best chefs cut or burn their hands sometimes. People who have climbed up a ladder 99 times can still slip on their 100th. Delivery drivers can still get in accidents even if they're doing everything right.
There's nothing wrong with doing what you can to keep your employees safe and happy. We'd even encourage you to do that, but don't assume that everything is under your control.
This is where workers' compensation comes in. It provides employees with the money to provide an income for their family while also paying for medical bills incurred because of the injury.
7. Cyber Risk Coverage
It seems like hackers are getting smarter every day, and that's definitely bad news for the business world. If you want to protect your clients' information and even your own, you will need cyber risk coverage.
Cyber risk coverage helps reimburse any money lost through the cyber attack itself, or through repairing it. This is especially good news because a successful cyber attack often costs thousands in cleanup.
Different Types of Business Insurance & Why You Need Them
There are many different types of business insurance out there. We've covered many of the important policies in the paragraphs above, but there are plenty more out there. We encourage you to do more research on your own if you're interested.
How Does Workers' Compensation Work: A Guide For Business Owners
When you are a business owner, you worry about your bottom line costs and profits.
But you also think about what would happen if one of your employees was injured on the job? Do you have enough business insurance to handle an injury like that? How does workers' compensation work for your company?
There is a myriad of different questions and worries running through your head on any day. Employee injuries, insurance, and how much it would end up costing you are right up there at the top of your concerns.
The informational guide below will go over how to understand best what workers' compensation is. The guide will also give information about what workers' compensation provides for your business peace of mind.
What is Worker's Compensation?
The history of workers’ compensation in the U.S. spans over 100 years. When workers' compensation began back then, occupational injuries and fatalities were at epidemic levels. The 1970 passage of the OSH Act set out various recommendations for a system of compensation that would be fair to the business owner and employee.
New Jersey has one of the better state systems for worker compensation insurance and a fair rating system for their disability and compensation schedule for injured or sick employees. The state also mandates that every employer not covered by federal programs must have workers' compensation coverage or approved for self-insurance.
How Does Workers Compensation Work?
Worker's compensation insurance provides business owners some peace of mind from being sued by employees hurt on the job. Employees can still sue, but the worker's compensation insurance helps prevent that from happening most of the time.
The insurance is paid for by companies and is used to provide benefits to employees who become ill or injured on the job. A worker's compensation insurance program provides this care through two types of benefits.
The First Benefit is Medical
Workers’ comp insurance provides medical benefits to employees who become injured or ill on the job.
The Second Benefit Is Lost Wages
Workers’ compensation insurance also covers wages lost by employees unable to work due to their workplace injury. Most of the time, it is an accident the employee had on the job where they can't work for some time. The insurance provides benefits to help cover the wages the employee will lose while they recover.
Workers Compensation and Financial Protection
Worker's compensation gives businesses financial protection. Worker's compensation gives employees who are injured or get sick on the job medical care and lost wages.
If the employee's recovery takes a while, the workers' compensation helps them have a livable income wage while they get better.
What do Businesses Like about Workers Compensation and Financial Protection?
Almost every state requires worker's compensation insurance, and in some states, employers can go to jail or face fines if they don't have it.
Businesses especially like to have worker compensation insurance because the insurance reduces their financial loss in case of lawsuits. Without insurance, if an employee gets sick or hurts on the job, the business may look at a lawsuit for lost wages and damages.
What do Employees Like about Workers' Compensation and Financial Protection?
Employees like the worker's compensation insurance because it helps them get their medical and financial needs met while they recover.
Stellar employees sometimes won't work for companies without workers' compensation insurance. If you are a small start-up business, those are the employees you want and need.
Company Programs That Help Reduce Injury Claims
When you are a business owner, you want your financial statements to look healthy. It's in your best interest to keep your businesses exposure to big-money items to a minimum.
To keep your exposure down and your big-ticket costs to a minimum, there are steps you can take. These steps can help your company keep the risk of injury to your employees at a minimum.
They include:
- Keep workspaces clean and free from clutter.
- Post signage up in proper places for employees.
- Provide a safety program and proper training.
- Provide proper equipment that's received maintenance and safety checks.
- Provide injured workers with access to the best medical treatment without delay when injuries occur.
But even when you take these steps, your company's safety record begins and ends with prevention. Prevention of accidents, injuries, and illnesses is the only way to go.
Employee Workplace Injury Statistics
Workplace deaths and occupational injuries have dropped over 60% since the inception of workman's compensation. Most injuries and illnesses that have occurred since then were preventable.
In the U.S., there are over 12 workers who die on the job every day. That equals over 4,500 every year. Every year, there are over 4 million employees who suffer a serious, life-altering job-related injury or illness.
These numbers prove that there need to be more pro-active prevention programs offered by companies.
Where Can Your Company Go to Find Out More About Workmans' Compensation?
We hope you've learned more about the importance of workers' compensation, both for you as the business owner and your employees.
There should never be a question about getting workers' compensation insurance; it is the law. That said, if you get coverage without implementing an injury and illness prevention program, it may seem like a futile effort.
Injury and illness prevention programs need not be resource-intensive for small businesses. Most programs can be modified to meet the needs of any size organization.
Your business will not be alone in the quest to provide New Jersey with the safest work record. You will join companies in most of the US states, 27 European Union member countries, Canada and Australia.
If you want to get the right workers' comp coverage for your business, give us a call to find out more: 609-587-8030.
Do You Need Business Insurance? 5 Convincing Reasons Why You Do
As a business owner, it's challenging to cover all your bases, especially if you are new to entrepreneurship.
You might wonder, do you need business insurance?
Businesses can't afford to be uninsured. If you're on the fence about purchasing commercial coverage for your business, it's time to get down.
Keep reading for five of the top reasons your business must have insurance.
1. It's the Law
All businesses in the United States, including small businesses, should have business insurance.
Depending on the insurance and where you are located, you may be legally required to have insurance. If you have hired employees, you are likely required to carry workers' compensation insurance.
Each state has its own requirements for liability insurance. Check the laws in your state to determine which kinds of insurance you are required to have in place.
Don't make the mistake of thinking business insurance is a waste of money. Failing to have the required insurance can ruin your business and could lead to unthinkable financial loss.
Here are some common examples of costly incidents that could leave you in serious trouble without insurance:
- A fire or flood destroys the building your business is located in or your inventory
- A lawsuit from a customer who was injured on your property and claims you were negligent
- If your customer or client's personal information is stolen
2. Contractual Requirements
For many businesses, commercial insurance is required per the terms of contracts they enter.
Businesses contract with other entities for all kinds of reasons. These contracts often outline financial responsibilities and liabilities and require insurance in place to protect both parties.
Here are some common examples of contracts that require insurance:
- Loan agreements
- Rental agreements
- Client contracts
3. To Protect Your Employees
There's a reason that most states require businesses to carry workers' compensation insurance. It protects employees by providing coverage if they are injured while on the job.
There are two types of benefits provided to employees by worker's comp insurance:
Medical
Workers' comp insurance will provide medical benefits to employees who become injured or ill on the job.
For example, if an employee is involved in a workplace accident or trips and falls and becomes injured while at work, they will receive compensation for the cost of their medical care. In exchange, they cannot sue you.
Lost Wages
Workers' compensation insurance also covers wages lost by employees unable to work due to their workplace injury. So, if the employee who was involved in an accident can't work for an entire month, workers' comp insurance will provide benefits to help cover the wages the employee lost.
Having workers' compensation coverage will also help you recruit and retain employees. When employees are looking for a place to work, they are looking for benefits in addition to salary.
The best employees will have the highest standards when it comes to both salary and benefits. Having workers' comp coverage is an easy way to make your business attractive to prospective employees.
You will send the message you care about your employees and you will be there for them through good and bad.
4. To Protect Your Customers
Your business needs a commercial liability insurance policy to protect your customers in case of an accident on your property because of you or your employees' negligence.
If a customer is injured on your property and it's your fault, they will sue you. Liability insurance can help cover the cost of your customers' medical care, lost wages and pain and suffering. Some liability policies offer medical payments available to your customers regardless of liability.
As you can imagine, being able to help customers in this situation will go a long way regarding customer retention and public image. Customers will be more likely to do business with you if they feel that you care about their safety.
Business insurance can also help protect your customers' personal data. Data breaches are becoming increasingly common.
Consumers are hesitant to trust a business who has experienced a data breach and exposed their personal information. Business insurance not only covers you following a data breach, but it gives the public confidence in your business, making them more likely to trust you again with their personal information.
5. To Protect Yourself
The number one reason your business should have insurance is to protect itself.
As a business owner, failing to have insurance is the biggest mistake you could make. It's obvious that you need insurance for your property, but you also need all of the insurance that comes with a Business Owner's Policy.
For example, if your customer who slipped and fell sues you, without insurance, the legal fees would be crippling. The bottom line is, you can't afford to not have business insurance.
Business insurance can also protect you, as the owner of the business, from being vulnerable in case of a lawsuit.
Do You Need Business Insurance?
We hope you're no longer wondering if you need business insurance. Of course, you need it!
Not having business insurance simply isn't an option. You could face backlash from your customers, employees and the law, not to mention the potential financial risks.
If you don't have a business policy, get one today. Contact us now to learn more about how we can help protect your business.
What Does a Cyber Liability Insurance Policy Cover?
Cyber attacks are the high-tech crime of the century.
The aim of cyber thieves is usually to steal sensitive data stored on company servers. If your company saves customer's personal data, you may need cyber liability insurance.
What is it and how does it work? Harrah & Associates, Inc. explains.
Cybercrime: A Million Dollar Industry
Cybercrime results in millions of dollars in losses to companies around the world. The losses are not only monetary, either. Data breaches can also damage a company’s reputation.
Here are some alarming statistics:
- The average cost of a malware attack on a company is $2.4 million (Accenture: 2017 Cost of Cyber Crime Study)
- The average cost of cybercrime increased over 27 percent globally in 2017 (Accenture)
- Information (data) loss accounts for 43 percent of costs (Accenture)
- The average cost of a data breach for companies with 50K+ compromised records is $6.3 million (Ponemon Institute: 2017 Cost of Data Breach Study)
- Including turnover, increased customer acquisition, reputation losses and diminished goodwill, the global cost was $4.13 million. (Ponemon Institute)
Another type of attack involves cybercriminals taking over a network. First, they hack into a system and encrypt the data so the company cannot access it. Then they demand a “ransom” in order for the company to regain control.
Ransomware damage costs exceeded $5 billion in 2017, according to CSO Online.
Why All Businesses Need Cyber Liability Insurance
High-profile cases like the ones that affected Target and Equifax always make headlines. However, small and medium-sized businesses are also frequent targets. According to Forbes, 58 percent of cyber attacks affected small businesses.
So, if you think cyber thieves will leave you alone because you’re small potatoes… think again.
How Cyber Criminals Target Businesses
Cybercriminals are very sophisticated. They spend all their time thinking of ways to infiltrate vulnerable systems. In most cases, hacks occur because an employee opens the door.
Common methods of cyber thieves:
- Drive-by downloads – In this case, thieves trick employees into clicking on websites with malicious content or plugins
- Public-facing applications – Thieves target vulnerabilities related to SSH network services, web servers and file-sharing platforms
- Phishing attachments – Introducing viruses via attachments embedded in emails
- Phishing links – Emails that include links to malware or infected sites
- Phishing services – Introducing threats via social media networks or personal email accounts
What do Cyber Thieves Want?
Cyber thieves often target "personal identifying information", including:
- Social security numbers
- Bank account numbers
- Credit card numbers
- Passwords
- Network access passcodes/identifiers
Cybercriminals then exploit the data in a variety of ways:
- Steal identities
- File for a social security number
- Establish credit
- Take out loans
- Commit fraud under someone else’s name
- Buy goods and services
- Sell the information on the dark web
What is Cyber Liability Insurance?
General commercial liability protects your business from financial losses relating to property damage or injuries. It will cover you if you get sued and need help pay legal fees, court costs or judgments against you.
Cyber liability insurance protects you from hacks, data breaches, denial of service attacks and computer viruses.
If your data is stolen or compromised, you could face lawsuits from customers and clients. Government agencies and credit card networks might impose steep fines or penalties.
There are many other costs associated with cyberattacks, beyond lawsuits. You will have to spend time and money investigating the cause of the breach and take steps to ensure that such an event never happens again. This can entail installing more sophisticated security software and firewall protection.
You may also have to hire a computer consultant to recover your lost data, not to mention PR and advertising costs for damage control, both with your customers and in the media.
What Does Cyber Liability Insurance Cover?
Most cyber insurance includes first-party and third-party coverage. First-party coverage applies to direct losses to your company. Third-party coverage applies to claims made against your company.
First-party cyber insurance coverage:
- Loss or damage to electronic data
- Legal and police services to investigate how the breach occurred
- Loss of income or extra expenses
- Business interruption costs
- Credit and fraud monitoring schemes
- Cyber extortion losses (ransomware schemes)
- Notification costs to affected customers, clients, vendors, and employees
- Damage to your reputation
- Public relations to restore faith in the business
Third-party cyber insurance coverage:
- Settlements related to judgments or damages after a data breach
- Coverage for employee privacy
- Government fines and penalties
- Errors and omissions
- Cost of reissuing cards (for banks and other financial institutions)
Other types of cyber insurance coverage:
- Hacker damage - Protects against attacks and covers the cost of recovery and repairs. It also covers PR fees for security and forensic consultants.
- Multi-media liability - Applies to data shared via emails, social media and other online platforms.
- Business interruption and income – This coverage helps you stay afloat while you are trying to recover from a cyber incident.
Who Needs Cyber Liability Insurance?
As discussed earlier, it is not only large corporations who need to worry about cyber attacks. Certain industries are frequent targets of cyber thieves.
Vulnerable industries include:
- Financial institutions
- Investment firms
- Hospitals/medical clinics
- Insurance companies
- Retail stores
If you store identifying or sensitive information, consider buying cyber liability insurance. This applies to any company that collects and saves any of the following data:
- Credit card numbers
- Bank or payment information
- Personal information: Names, email addresses, phone numbers, addresses, social security numbers, driver’s license numbers
- Health and medical information
- Trade secrets or patent applications of clients
Be sure to look into state and federal regulations. Certain states might require businesses to carry cyber liability insurance.
Protect Your Business with Cyber Liability Insurance
Now that you know the risks and results of cybercrime, it’s time to protect your business.
You never know when you might be the victim of a cyber attack. Don’t wait until after an incident to protect your business from financial ruin.
Protect yourself now with cyber liability insurance and any other commercial insurance you might need.
Liability Insurance for Freelancers: Professional vs. General
These days there is so much choice in terms of the employment opportunities. More people are going into business for themselves and freelancing. If this is a career path that you have taken, it is important you are prepared.
This means taking steps to ensure you are doing all you can to become more successful as a freelancer. There are so many elements involved in going down this career path, and it is important to think about how you can improve things. Considering the insurance you need to get as a freelancer is important, one of the big concerns is liability insurance. It is important to make sure you understand what liability insurance is, and why you need it as a freelancer.
What work do freelancers do?
Freelancers can do many jobs these days, and it is important to think about what you might do as a freelancing professional. "Freelancer" is a broad term given to anyone who is self-employed and works for themselves, with a pool of clients they work for. Freelancers often run businesses, but sometimes they are just individuals working for themselves.
The work freelancers might do includes graphic design, blogging, photography, web design, marketing, bookkeeping, and writing. Businesses often outsource content to them rather than hiring permanent staff. As a freelancer, you need to have measures in place to protect yourself (and your clients) from legal issues.
Why do they need insurance?
Why do freelancers need insurance? As a freelancer, you are not part of an organization, and therefore you are liable in the event of any legal issues. As an independent contractor, you are in business for yourself, and this is why it is so important to protect yourself with business insurance.
You’ve got to safeguard your assets as a freelancer, and this could mean covering your premises in the event of fire damage, or to protect yourself if clients claim you’ve caused them financial loss. Lawsuits are not something you want to deal with as a business owner, and they will not do your future business prospects justice.
Why aren’t they covered under client policies?
It’s true that many traditional business policies are not designed with freelancers in mind. This is due to the fact that freelancers have a less rigid structure to the jobs they do, and this can make it more difficult to pigeon hole. Business insurance will generally cover the company for liabilities, but as a freelancer, you are more exposed to more risks than you would be as an employee.
You'll also be responsible for any damages or legal claims that arise. Since you aren’t covered by traditional policies, you are not protected in the event of things like discrimination.
This goes back to the National Labor Relations Act passed by Roosevelt in the mid-1930s, which stated that independent contractors would not be afforded the same insurance and protection as employees. You need to know about the different forms of insurance necessary for you, as a business owner, to protect yourself better.
Professional liability
Professional liability insurance is one of the most important components you need to get right. This will provide you with coverage and protection against legal issues when a client claims that your professional negligence led to financial losses on their part. This is something that can (and does) happen when you are a freelancer, so you need to make sure you are protecting yourself against it. This form of liability insurance for freelancers is crucial for dealing with the legal side of your career.
Sometimes known as errors and omissions, professional liability insurance policies exist to give freelancers watertight protection if any claims are made against them. There are many factors that could cause a client to take legal action against a freelancer, and often it's something that is nobody’s fault, it’s simply the nature of the business world.
General liability
Another form of insurance you should look into as a freelancer is general liability insurance. This differs from professional liability insurance because it doesn’t cover specific work you might have done for a client. Instead, this is a policy to cover personal injury or damage to property that may occur on your premises or because of the work you are doing. This can also sometimes cover instances of slander or plagiarism.
One important component of general liability insurance is that it can protect you in case your equipment is damaged. As a freelancer, you need access to your equipment, and general liability insurance can be combined with coverage for items essential for your work, such as a laptop or camera. Make sure you find the best general liability insurance that suits your needs as a freelancer to protect yourself as much as possible.
These are some factors you have to consider when sorting out your business liability insurance. There are many factors that contribute to your success or failure as a freelancer. Determine the right insurance for you and your freelancing business because it will protect your future and give you a legal shield from any issues that might arise because of freelancing. Now that you understand the difference, it is important to make the right choice and move forward.
