What insurance coverages do I need for my business?
The variety of insurance coverage available for most businesses is so broad your best bet is to call an experienced independent insurance agent to guide you through the buying process. Some of the available coverages are located on our webpage with clear definitions. There are several emerging insurance items that you might hear about including cyber liability and drone insurance. Again, your best bet is to seek the advice of a trusted insurance advisor, preferably one specializing in business insurance.
How do I save money on my insurance?
Most customers want to save money, especially because insurance can be one of the larger expenses for a small business. The first step is to find an independent insurance agent that has access to multiple insurance carriers. An agency that might have programs specific to your industry is even better, as agents that specialize in specific industries know what coverages are needed. They will also know what competitive markets are relevant for you. The second step is to confirm your business is being rated appropriately and that you are not overcovered. The last step is to go through an evaluation or discovery phase with your agent to uncover hidden liability issues that could end up costing your business more than the cost of insurance.
Do I need commercial auto insurance?
There are several factors that determine if a vehicle should be insured on a commercial policy. The first item is ownership – vehicles should be insured on a policy that matches the registered owner, whether a business or individual. Secondly, if the vehicle is used primarily for business, then a business policy might need to be considered as a more appropriate option. However, even though an outside sales representative may use her car to make sales calls once a week, a personal auto insurance policy would still fit their needs.
Will my homeowner’s insurance cover my business if I work from home?
Homeowners policy has many variations and even more when reviewing them state by state. A general rule of thumb is “no” but with a few small exceptions. Most homeowner’s policies will have a small sublimit of contents coverage under business personal property – range of $1,500 to $2,500 is normal. However, anything above that is not covered. Why risk a homeowner’s insurance claim when you could have a business policy – most homebased businesses can obtain separate coverage for a very reasonable premium.
What is the difference between Replacement Cost and Actual Cash Value?
Replacement cost valuation is the more common coverage type and is defined as the actual cost to replace the insured property. For a building, that means the cost to rebuild the structure today, not what it cost 20 years ago, or its market value. Actual Cash Value means replacement cost minus depreciation for age, wear and tear. This coverage is common on older structures and properties that you would not able to replace.