FRIDAY, MARCH 15, 2019
Workers' compensation provides financial protection to businesses. If an employee suffers an injury resulting from the work they do, this policy covers some or all of their losses. This minimizes the financial loss your business may suffer. Some states require businesses to maintain this insurance. If so, it is important to have proper protection. Here is where to start.
What Factors Apply to Your Requirements?
States have different laws regarding workers' compensation insurance. In some states, the requirement is clear - all employers need to maintain a policy. In others, there are limitations. Your first step should be to determine the requirements in your state. Your business insurance company can provide very specific information here.
Keep in mind that even if not required, workers' comp can still be a valuable asset for you. It offers protection from financial loss that can amount to thousands of dollars.
What Some States Require
The rules to remain in compliance vary from one state to the next. If you fail to maintain coverage, you may face a fine. Here are a few things to think about:
As you can see, maintaining proper workers' compensation insurance is critical. It safeguards your company financially and ensures you meet compliance requirements.
- Some states require workers' comp if the company has more than five, 10, or another set number of employees. Failure to maintain this insurance results in fines. For example, in New York, all companies with at least five employees must maintain coverage.
- In some states, such as Pennsylvania, if you don't carry coverage, it can result in a felony charge. This includes if you fail to disclose the true number of employees you have.
- In California, Illinois, Massachusetts, Michigan, and Pennsylvania, failure to carry proper workers' compensation insurance can result in criminal charges. This may mean fines and jail time.
- Texas is one of the only states that does not require employers to maintain this coverage. However, it does still hold employers liable for employee injuries in most circumstances. Employers therefore should carry coverage.
How to Ensure You Don't Make a Mistake
If you are unsure if you need workers' comp, call your business insurance agent. Discuss the type of business you run. Talk about the number of employees you have.
Think about the risks. Can employees suffer injuries? Could someone get sick? Chances are, the can at any time. Proper insurance is not just about compliance.
It is also about keeping your company safe.
It does not have to be hard to get this coverage. Most states offer competitive insurance policies. You can find affordable policies that fit your needs. Then, you do not have to worry about an employee injury on the job.
If you need workers' compensation insurance coverage, contact Insurance Planning Service today at 734-421-9900.
Also Read: Reducing Worker Falls on Icy Outside Surfaces
FRIDAY, FEBRUARY 8, 2019
You strive to keep your business property durable, clean and secure. However, at times, you cannot keep out every pest. Termites might be small, but they can wreak major damage on your business if you don’t control them. If termites create damage, you might wonder if your insurance will pay for their removal and structural repairs? Here are a few more details.
Property Insurance Limitations for Termites
Unfortunately, property insurance and termites have a complicated relationship. Therefore, your best bet is to try to prevent termites from taking hold.
Most termite infestations happen slowly. They might invade your business over time, and it might take years for noticeable damage to occur. Ordinary operations might continue with no inkling that pests have entered the building.
Once you notice termite problems, it might be too late to avoid severe damage. Therefore, you might face countless dollars in repair bills. You might even face a total loss of your structure should the damage prove too severe. Should structural integrity become compromised, it might prove unsafe to even enter the property. Therefore, operations could grind to a halt.
If a termite problem arises, you might wonder if your insurance will cover repairs. Unfortunately, you will likely find that property insurance won’t offer any recourse.
Property insurance generally only covers unavoidable, unpreventable damage to your property. In most cases, you can prevent termites with vigilance and maintenance. These tasks usually prove relatively inexpensive. Such care therefore usually falls under regular maintenance. Insurance almost never covers standard costs that are your responsibility.
Responsible business owners should always undertake regular preventive actions to keep termites out. Doing so can reduce the chances of ever having to file a property insurance claim.
One of the simplest ways to prevent termites is to engage in simple pest prevention measures. Have a pest service professional visit your property at regular intervals. They can spray a repellent in and around the space to prevent termites from getting inside. Most services will spray every few months at regular intervals. The ongoing prevention can almost certainly cut termite risks.
Furthermore, certain pest services also offer regular termite inspections. Professionals will inspect the structure for signs that termites have slipped past any chemical agents. Your pest inspector can likely catch small infestations before they get worse.
Don’t hesitate to call a registered pest elimination service today. It might help you prevent significant termite damage down the road.
Also Read: Will Commercial Property Damage Cover All Roof Repairs?
THURSDAY, JANUARY 10, 2019
If you run a furniture store, you’ll often offer repair services. You might even refinish certain pieces. This might mean working with everything from delicate antiques to malfunctioning contemporary pieces. Clients expect you to make repairs professionally. If you accidentally damage an item, you might place the client (and yourself) in a bind. Why do these risks occur? How can you avoid them?
Property Damage Risks in Furniture Businesses
Repairing furniture means you’ll take a client's belongings into your care. You might repair them in your store, or in the client’s home. The client will expect you to do your job professionally. So, if an accident happens, they might want compensation for their losses.
Think about some of the ways you might damage your clients’ belongings:
- You spill a solvent on an upholstered chair, staining and burning it.
- A fire breaks out in your business, and in the process damages client belongings.
- An antique piece falls off a work bench, splintering beyond repair.
- While visiting a client’s home to pick up an item, you accidentally damage an item. For example, you break a window when trying to move a piece out of the home.
If any of these damages occur, you might have a duty to replace the item, repay the client or both. You might even face legal action by the client.
Any such loss might create particularly high cost burdens. You might even put your business’s finances or assets on the line trying to reach a settlement. Thus, you might want to use your commercial insurance to help ease some of this burden.
If you have property damage liability insurance, you can often file a claim for damage to a client’s possessions. This protection exists to cover damage you cause to others’ belongings. So, since you will handle a lot of client belongings in your business, make sure you have this coverage. Most policies will have financial limits. Therefore, make sure you have enough to cover the value of most items in your care. This will likely amount to several hundred-thousand dollars.
Create a Safety Process
You’ll naturally not want to have to file a property damage liability claim. Create a plan to protect client belongings, and you can often reduce such chances.
Your safety practices will likely vary. However, careful handling should remain front and center. Only follow tried-and-true practices when repairing furniture. Never place these items in harm’s way and make ample use of anchors and shields to keep them safe. With attention to detail, you’ll likely create a better degree of safety for items in your care.
Also Read: Prevent Business Insurance Claims with These Risk Reduction Tips
FRIDAY, DECEMBER 7, 2018
When you have liability insurance, you expect it to protect you from the harm you cause others. However, liability policies can only go so far. At times, this means they won’t cover all your losses. You’ll still want protection, nonetheless. This might mean investing in commercial umbrella insurance. What are these policies? What will they cover?
Commercial umbrella insurance is critical in cases resulting in high liability losses. So, carefully consider how your coverage can help your business.
How Umbrella Policies Work
All basic commercial liability policies have financial limits. Thus, if you face a financial claim above these limits, you’ll might have to pay out of pocket for the excesses. With umbrella coverage, however, you’ll get extra funds for hangover losses left by your original policy limits.
Umbrella coverage, because it provides more money, will often prove instrumental to solvency. Coverage can also insure liabilities not covered by your standard insurance policies. Therefore, protection often offers more security in the end.
Umbrella insurance often can apply to a variety of your commercial liability policies. You might be able to claim funding related to losses on your:
1. Bodily injury liability insurance
If someone gets hurt in your business, coverage can help you pay their medical costs. Umbrella insurance can come in handy in case these costs exceed your liability limits.
2. Property damage coverage
If you damage your clients’ property, this coverage can help you repay their losses. Extra umbrella coverage might help if you damage exceptionally-valuable items.
3. Professional errors/malpractice coverage
Professionals like accountants, lawyers or doctors often carry this coverage. It covers the damage you cause your clients, which often prove expensive. Many umbrella policies will often cover extra losses.
4. Commercial auto insurance
If your company vehicles cause an accident, the harm to others could become costly. With umbrella coverage, losses above the cost of your existing commercial auto liability coverage can have coverage.
5. Advertising/personal injuries
You might accidentally commit defamation, libel or slander, either spoken or printed. You’ll often need a specific liability policy in your commercial plan for these risks. In case you have exceptionally costly losses, see if your umbrella coverage will help.
Keep in mind, umbrella insurance is a fluid world. Therefore, policies will vary in what they cover. Some might not include all the coverage listed above.
Therefore, you should take a close look at your commercial liabilities. Ensure any umbrella policy you obtain pertains specifically to your industry and operations. Don’t forget, these policies will have financial limits as well, so ask your agent to increase coverage as necessary.
Also Read: What to Consider When Launching a New Business
FRIDAY, NOVEMBER 9, 2018
You have work to do. You rely on your vehicle to make it happen. When you are hauling valuable, special, or high-risk equipment, be sure you have a commercial auto policy that protects it. Your policy should represent the types of risks you face. It should also meet any requirements for transport. Here is how to choose coverage.
Why What Is On Board Matters
Your commercial auto insurance covers the value of your vehicle. It can also sometimes cover the value of the contents of the vehicle. However, you’ll need to specialize coverage for vehicle contents. Depending on the type of car, you may need coverage designed for your load. The value of the items you plan to carry plays a role in how much coverage you need. Here are a few examples.
#1: Your company transports people to and from locations. You carry just the people and their personal belongings. Here, you generally do not have any added contents to worry about. A basic policy usually applies.
#2: Your company transports expensive manufacturing materials to and from locations. They may not be large components, but they are very valuable. An accident could be high risk. Here, those valuable items need protection.
#3: Another example occurs for companies using equipment for their work. For example, your truck contains equipment to allow you to handle tasks at customer homes. Here, your coverage needs to be enough to cover damage to those items.
For those hauling large loads in trucks, where the specific task is just moving the equipment, special trucking policies offer load protection. Still, you may need to adjust how much coverage you have here.
What to Do About Coverage
Talk to your business insurance agent. Gather insight into how much contents coverage your policy currently offers – some may not offer any contents coverage upfront. Discuss the valuables you routinely haul. Do you need more protection? Do you need to add a cargo rider to your policy? If so, your team can help you to obtain it. Additional coverage is possible to cover specific items on your truck. Or, you may just need different property insurance from your general commercial insurance.
Commercial auto insurance is flexible. This is why it is so important that your agent understands your business. Be open about how you operate. What do you do? What do you haul? How frequently do you do so? This information allows your agent to provide specific protections. It can make all of the difference if an accident occurs. It may be essential for your company.
Also Read: Insuring Trailers Used by Your Business