Property & Casualty Insurance From Independent Insurance
Professionals
There are
many reasons businesses should obtain property and casualty
insurance policies. The biggest reason is that they
provide protection from losses caused by legal liability and
from damage to or loss of property. If there was any
property damage caused by theft or loss, the proper policy of
insurance would provide replacement for it, typically at
replacement cost. Property and casualty insurance also provides
coverage for: lost income; liability for negligent acts; and
coverage for automobiles and worker’s compensation, among other
exposures.
Policies
It is wise for a business to purchase, at a minimum, basic types
of insurance. Some types of insurance are even required by law.
Below are some of the different types of policies offered in the
state of NY.
Monoline
These policies provide a single line of insurance such as
liability insurance, auto, or fire.
Business Owner’s Policies (BOPs)
Some insurance companies bundle liability and property insurance
together. This is commonly referred to as a business owner’s
policy. These BOPs typically equate to more affordable premiums
with broad coverage and are created by combining two or more
monoline coverages into a single policy.
Types of Business Insurance
Property Insurance
This type of insurance protects the contents of a business
against theft, fire and other dangers. Since every business is
different and requires varied coverage amounts, it is important
to know the level of insurance needed to replace or rebuild and
what property needs to be insured. A complete understanding of
the limitations of the property insurance policy and other
applicable insurance terms is also crucial. In addition, a
proper analysis would require an complete understanding of
the difference between replacement cost, the actual cash value,
agreed amount and functional replacement cost.
Casualty Insurance
This type of insurance covers the cost of lawsuits caused by
accidents that result in property damage or bodily injury.
Casualty insurance will also pay the attorney fees and other
costs associated with the defense of a lawsuit. It could also
cover the cost of other claims like false advertising, libel and
slander. There are some things that might not be protected with
liability insurance including wrongful termination of employees,
sexual harassment, or non-performance of a contract.
Business Interruption
This insurance can provide the funds needed to pay for
lost business income* and fixed expenses during the time
period when a business is not operational. Although property
insurance will pay to cover the replacement of damaged or
destroyed buildings or equipment, it will not cover the payment
of continuing expenses during the period between when the damage
occurred and the property is replaced.
Commercial Auto
A business-owned vehicle should be insured for physical damage
and liability. Non-owned automobile coverage should also be
obtained if a personal vehicle is used by employees or owners on
company business. This non-owned auto policy covers the
businesses liability for any damage that may occur from such
usage. The commercial auto policy could also cover rental cars
if used on business travel.
Workers Compensation
This type of insurance covers workers against a job-related
accident or disease. Worker’s Compensation pays for disability
income benefits, medical bills, and death benefits to dependents
of an employee whose death was job-related. The rates for this
type of insurance is grossly dependent on the type of industry
the business is in as there is more danger involved in certain
fields than others.
New York State Disability Benefits Law (NYS DBL)
This is an insurance coverage mandated by New York State – NYS
DBL is another employee disability coverage that provides
disability income for injury or illness for an employee off the
job.
Employment Practices Liability
This insurance protects a business if any employee sues for job
discrimination, wrongful termination, or another claim that
accuses failure in the company’s employment practices.
Officer And Director’s Liability
This type of policy covers a liability if a director/officer of
a corporation (any entity) is, potentially, personally
accountable for their actions on behalf of the business.
Office At Home
This coverage protects office equipment and business liability
if an employee or business owner establishes an office in their
home. This is not automatically included in a standard
homeowner’s insurance policy.
Excess Liability – Also known as an
“Umbrella Policy”.
This takes effect when the limit of the basic fundamental policy
is reached. The amount of coverage extended with an excess
liability policy should be based on the total value of a
company’s assets.
Key Person
This type of insurance policy is needed if the owner or another
individual within the company is so vital that the business
could not continue if that person died. The key person policy
can also provide cohesiveness in operations during a period of
ownership transition that was caused by the incapacitation or
death of a key employee or owner.
National Flood Insurance Program (NFIP)
An NFIP provides protection from losses resulting from flooding
if the property is in an area designated as a special flood
hazard area that implements and enforces measures to reduce
future flood risks. For the most part, this type of coverage is
not provided in monoline of BOP policies. Click here for more
information on flood insurance.
*Net income that would have been earned as well as
continuing normal operating expenses incurred including
payroll.
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