How to Develop a Better Understanding of Business Liability Insurance

Your business provides goods and services as well as jobs to the community. Running your business requires many detailed and well thought out decisions on a daily basis. Leap/Carpenter/Kemps Insurance Agency is in the business of protecting your business from unforeseen losses or claims. A well-designed business insurance policy will go a long way toward keeping your business open and thriving. A commercial liability policy can protect your company from actions by yourself and employees if a third party is damaged or injured.

We get asked many questions regarding commercial insurance so we thought we would share the most common ones with you.

1. Does my business need a commercial umbrella policy? Yes, we recommend every business have at least a $1,000,000 commercial umbrella insurance policy. A commercial umbrella policy provides an added layer of limits above your primary liability coverage.
2. What can a commercial liability policy cover? A commercial liability insurance policy can generally cover the business’s legal liability for operating. The insurance is designed to protect you, your business, and employees from claims by third parties such as customers, vendors, and others.
3. Can employees use a privately owned vehicle for business purposes? There is no perfect answer here as it depends on the use. If your employee uses their personally owned vehicle occasionally to drive to get the mail or drop something off to a customer, then it may be covered—but not under the businesses commercial auto policy. The employee would need to confirm with their personal auto insurer regarding coverage. If the employee uses a personally owned vehicle for business a majority of the time, then it may be excluded. We recommend you have us review this exposure, as each situation is different and will require a different approach.
4. How can I get the best business insurance program possible? The foremost way to get the best possible business insurance program is to use an independent agent like Leap/Carpenter/Kemps insurance agency. We have access to many markets and can design a program specifically to meet your business’s needs.
5. Who helps us through a claim? Your agent should be there to help you understand all aspects of your claim and advocate on your behalf with the insurance company. Your agent should guide you and help you understand how to get the best possible claim settlement under the policy you have.
6. How are my business insurance premiums determined? Your business insurance premiums are determined through an evaluation of many factors including the industry you are in, the size of your business, location, revenue, losses, the value of your property, equipment, and inventory.

Here are the kinds of insurance products that should be included in your business insurance program. Your business may not need every kind of business insurance coverage, but it is likely you need most of these.

Workers’ Compensation – Every business that has employees is required to have workers’ compensation insurance. Workers’ compensation covers your employees for on-the-job injuries.

Commercial Liability Insurance – A good commercial liability policy is made up of many different individual coverage's including bodily injury, property damage, personal injury, advertising liability, products and completed operations, and premises medical coverage.

Commercial Property Insurance – Property insurance is just as it sounds and can cover your buildings, personal property, equipment, stock, computers, and any other property you may own.

Commercial Auto Insurance – If your business owns vehicles they will need to be insured under a commercial auto policy.

Employment Practices Liability – Like workers’ compensation, if you have employees we recommend employment practices liability insurance. This coverage provides protection from litigation brought by employees for such things as wrongful termination, retaliation, defamation, invasion of privacy, sexual harassment, breach of contract, as well and many others kinds of claims. The good thing about employment liability policies is that most policies will provide a defense to prove that you are right, or pay if you are proven wrong.

Professional Liability – Many businesses do not think they have a risk in the professional liability area, but think again. You do not have to be a lawyer, doctor, or engineer to have professional liability exposure. If you offer advice to your clients in any way, you may have a professional liability exposure. If the advice you give causes a loss to your client, they will look to you to make them whole. Unless you have this specific coverage, your claim would be excluded.

Commercial Umbrella Insurance – A commercial umbrella policy provides added limits over and above your primary commercial liability policy. It is recommended that most businesses have at least a one million dollar commercial umbrella policy.

Leap/Carpenter/Kemps Insurance Agency offers free, comparative quotes on commercial insurance from multiple insurance carriers so you can get the best possible rate. Our team of commercial insurance professionals is here to help protect your business from the unknown.