FREQUENTLY ASKED PERSONAL INSURANCE QUESTIONS
Q. What Insurance Company Should I Choose for My Business?
Answer: Each company insures certain industries of their choice. Important credentials to look for in any insurance company is their financial stability, coverage's offered within their commercial policy, and customer satisfaction with claims. Personal service sets Jacob Insurance Service apart from others.
Q. What Is A Business Owners Policy, (BOP)?
Answer: A business owner’s policy or “BOP” is insurance coverage designed specifically for small or medium-sized businesses. Depending upon the insurance company, the size of business that qualifies for a business owner’s policy may be based on revenues or number of employees. A BOP combines several types of insurance coverage in a packaged format, and can be customized to suit a particular business. Generally, this type of policy includes both property and liability coverage.
Q. Is My Home Business Covered?
Answer: Some homeowners policies cover certain aspects of a home-based business. For example, a homeowners policy may cover up to $1,000 of business personal property. If the entity is a corporation or LLC then it would be best to have its own insurance policy due to the fact that most homeowner policies cover the individual(s) who live on premise and not the entity of the business. Typically, depending on the nature of the business, a home-based business can be insured under a BOP (business owners policy). A BOP typically will cover the business personal property and general liability for the business.
Q. What Is Business-Interruption Insurance?
Answer: Business Interruption Insurance is also referred to as business income insurance. It covers the loss of income that a business suffers after a covered peril disaster. The income loss covered may be due to disaster-related closing of the business facility or due to the rebuilding process after a disaster.
Q. Do I Need Workers Compensation Insurance?
Answer: If your business has employees, you are most likely legally obligated to carry worker’s compensation insurance, either on a self-insured basis or through a commercial insurance carrier. With that said, employers are liable for injuries even if the employee may have contributed to the injury or illness. Worker’s compensation laws vary by state.
Q. What Is Co-Insurance?
Answer: Commercial property insurance policies generally have a coinsurance clause of either 80%, 90%, or 100%. If a policy has an 80% coinsurance clause, you must carry a limit of insurance of at least 80% of the replacement cost at the time of loss, to avoid the “coinsurance penalty.”
Q. What Does General Liability Cover?
Answer: This covers most liability insurance claims that may be brought against you. It protects against payments for bodily injury, property damage, libel and slander. It will also cover court costs and legal fees associated with covered events.
Q. What Is Product Liability?
Answer: This is important for companies that manufacture, distribute, or sell products. If a product defect results in illness or injury, your company may be sued. This will provide coverage for this type of lawsuit.
Q. How Much Does Business Insurance Cost?
Answer: The cost of business insurance (commercial insurance) varies. A number of factors affect how much business insurance will cost, because it depends on the type of business and types of coverage appropriate for the commercial operation. Cost also depends on the size of business.
A small, home-based business can often be adequately insured for $500 per year, while insurance for a very large company with many employees and a wide range of business risks could be $500,000 per year.
Q. What Business Insurance Do I Need?
Answer: Because business insurance needs to be tailored to each business based on its risks, it is critical to work with an agent who will get to know your company and ensure that your coverage is adequate and protects your business investment. The following are a few of the most common coverages:
General Liability: Covers against accidents, injuries, and negligent claims.
Product Liability: Covers against defected products
Professional Liability: Covers professionals against malpractice, negligence, or errors and omissions.
Commercial Property: Covers damage against your business property, such as from fire or storms.
Business Interruption: Also known as business income, covers your business if you are no longer able to continue operations due to a covered loss.
Q. What Is False Pretense Coverage?
Answer: False Pretense will pay for a "loss" to a covered "auto" under False Pretense Coverage caused by:
a) Someone causing you to voluntarily part with the covered "auto" by trick or scheme or under false pretenses.
b) Your acquiring an "auto" from a seller who did not have legal title.
Information (FAQ) is provided for your convenience and does not constitute professional advice. If you have additional insurance questions, please contact our agents for a personal meeting.