THURSDAY, FEBRUARY 4, 2016
Ohio Small Business Insurance: What Brand New Businesses Need to Know
You’ve started a business. You’ve got business cards & stationery, maybe even a website and have been spreading the word that “Hey I’m in business” via traditional and digital methods. Maybe you’ve even appeared at a local event, such as a trade show. In the mad excitement that followed, did you even give more than a passing thought about insurance for that business?
If you’re a typical small biz owner just getting started, you won’t have the capital/resources to pull from if someone is injured or who’s property is damaged due to your business’s operation. And what about replacing inventory (or business contents inside if you're not a retail location)?
Ohio Small Business Insurance: What Established Businesses Need to Know
OR maybe you've been in business for awhile, but bought a policy in a hurry to satisfy a landlord or lender and haven't thought about the policy since.
But do you know what you really have and if it's the right coverage to protect your business?
So whether you're a new or established business, the following article is a great place to start to understand Ohio business insurance, the basics and how they apply to your business. When you're done, call us at (937) 592-4871 or visit our Ohio business insurance resources to discuss your business and how we can help you. You can also request a business insurance quote quickly, easily and securely.
Ohio Small Business Insurance 101: For both new and established businesses
Commercial General Liability Insurance
At its core, this insurance is designed to pay for bodily injury and/or property damage to others for which your business is legally liable. It consists of two main components-premises/operations and products/completed operations. Here’s an example of each:
• Premises/operations- your storefront. Also could be an off-site event, such as a trade show.
• Products/completed operations- any product/item you produce has the potential to cause harm. Provides coverage once the item is in the end user’s possession. Or after the work is completed (contractors are a great example).
Commercial Property Insurance
Protects your building and contents inside. Contents can include your stock (inventory) and office equipment (chairs, desks, etc.).
A word of caution- any contents items that leave the property lose coverage. The solution? List items that leave the premises on an Inland Marine Schedule (examples include laptops, iPads, or if you’re a contractor, tools & equipment).
Business Income Insurance
A subset of Commercial Property Insurance, but important enough to list on its own. Think of Business Income as disability insurance for your business. It provides money to keep your business operating should a loss occur that makes you temporarily cease operations. It can also provide Extra Expense should you have to relocate altogether.
Commercial Auto Insurance
Big surprise to many, but personal auto policies say absolutely no coverage if you’re using the vehicle for commercial purposes (read an earlier post describing this). And claim time is when you’ll find this out. No good. And you may be surprised to find out that commercial auto insurance isn’t as expensive as you might think. We use Erie Insurance almost exclusively for commercial auto policies and premiums are extremely competitive. Obviously it depends on what type of work you do, but still……
Commercial Umbrella Insurance
The commercial umbrella insurance policy is a liability policy that works with your other business insurance policies to provide additional coverage should those policies be exhausted in a claim. Here's an example of how it works: Your commercial auto policy has a bodily injury limit of $300,000. You run a red light, T-boning another driver, causing massive injuries. Your commercial auto policy will pay up to the $300,000, then pay no more (a limit is a limit). The commercial umbrella policy will then take over and continue paying that claim up to the limit of the policy. Minimum policy is $1 million, and sold in increments of $1 million thereafter.
As far as insurance value goes, it's simply the best money you'll spend for what you get. You never want to have to use it, but if you do, you'll be glad you have it.
So that's our "crash course" on Ohio Small Business Insurance: What You Need to Know. Questions? Want to discuss your Ohio business insurance? Please call us at (937) 592-4871 to discuss your business and how we can help you. You can also visit our Ohio business insurance resources and request a business insurance quote quickly, easily and securely.
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