Business Insurance Basics
Business Insurance Coverages Chesterfield MO | Business Owners Policy (BOP)
The BOP combines coverage for all property and liability insurance risks as well as many other coverages into one package policy. This type of insurance is a good fit for most small businesses. The BOP is an adequate business insurance policy providing commercial insurance coverage that most small businesses need. The term “BOP” specifically refers to insurance policy language developed by experts at ISO. ISO is a leading source of information about property/casualty insurance risk in a broad spectrum of commercial and personal lines of insurance.
The BOP includes coverage for business income, when your business suffers a loss and you are not able to operate. This is often referred to as interruption insurance. Interruption Insurance pays the owner income they lost when their business is destroyed by a qualifying disaster. Quite often, disasters can stop business operations for an unknown period of time. This could also could force a business to move out of their current location. Business income insurance will also coves the extra expense that a business owner may have to payout if a business must operate out of a temporary location.
Business Insurance Coverages Chesterfield MO | Business Owners Policy Options
Alternatives Insurance® of Chesterfield offers optional coverages to increase your protection and tailor a policy to meet your specific needs. For example, Outdoor Property. This coverage pays for loss or damage to outdoor fences, antennas, trees, shrubs, or plants caused by specific losses. Debris Removal covers the expense of removing debris caused by the loss. Pollutant Clean-Up provides coverage for a loss if you had to remove pollutants from land or water at your business location. These are just a few options for your business owners policy. Alternatives Insurance® of Chesterfield can shop your policy needs to find the best coverage for your business.
Only small- to medium-sized businesses that meet certain criteria are eligible for a BOP. Alternatives Insurance® of Chesterfield agents will look at the size of the premises, the required limits of liability, the type of business and the extent of offsite activity. Premiums for BOP policies are based on those factors plus business location, financial stability, building construction, security features and fire hazards.
Business Insurance Coverages Chesterfield MO | Property Insurance
Property insurance will reimburse the business owner if their property, that is used for the business, is lost or damaged as the result of fire or theft. Property insurance covers the structure, personal property (furniture, inventory, electronics) and whatever the business needs to use to operate with the least disruption. Alternatives Insurance® Of Chesterfield can help business owners determine the best policy that meets their needs. For example, property insurance may include coverage for equipment breakdown, removal of debris after a fire or other destructive event, some types of water damage and other losses.
Business Insurance Coverages Chesterfield MO | Business Liability Insurance
Liability insurance (also known as Commercial General Business Liability) protects a company’s assets and pays for obligations, such as medical costs. Consider if someone gets hurt on your property or when there are property damages or injuries caused by you or your employees. Everyone is out to sue somebody to get paid. Liability insurance will cover the cost of your legal defense and any settlement or award if you should lose your case. Liability insurance can also protect you against any liability as a tenant if you cause damage to a property that you rent, such as by fire or other covered loss.
Business Insurance Coverages Chesterfield MO | Business Auto Insurance
A business auto policy provides auto insurance coverage for autos owned by a business – the autos must be used for the business and listed on the business insurance policy.
The insurance pays any costs to third parties resulting from bodily injury or property damage for which the business is legally liable, up to the policy limits.
Business Insurance Coverages Chesterfield MO | Workers Compensation Insurance
Workers’ compensation is a state-mandated, “no-fault” insurance system that pays benefits to workers injured on the job to cover medical care, part of lost wages and permanent disability. Workers compensation insurance will provide immunity to employers involved in civil lawsuits by employees over such workplace injuries. Most states require that businesses with five or more employees must be covered under workers compensation. Contractors are excluded from this rule and must have workers compensation insurance even with just 1 employee. Missouri law does not see any difference between employees of different employment statuses. The statutory definition of “employee” includes both full- and part-time employees, seasonal and even temporary employees.
Other Types of Business Coverages
Errors and Omissions Insurance/Professional Liability
Errors and Omissions Insurance is most common for businesses that offer advisory services, rather than a product. Examples of these type of businesses are CPAs, Attorneys, those providing physical care, can all lead to being sued by customers, clients or patients claiming that the business’s failure to perform a job properly has caused injury. Errors and omissions or professional liability insurance covers these situations. The policy will pay any judgment for which the insured is legally liable, up to the policy limit. It also covers legal expenses when there has been no wrongdoing.
Employment Practices Liability Insurance
Employment practices liability insurance (EPLI) covers wrongful acts emerging from the employment process. The most common types of claims covered under EPLI policies include: wrongful termination, discrimination, sexual harassment, and retaliation. EPLI policies also cover claims from a variety of other types of inappropriate workplace conduct, including employment-related: defamation, invasion of privacy, failure to promote, and negligent evaluation. The policies cover directors and officers, management personnel, and employees.
Directors and Officers Liability Insurance
Directors and officers liability insurance protects directors and officers of corporations or not-for-profit organizations if there is a lawsuit claiming they managed the business or organization without proper regard for the rights of others. The policy will pay any judgment for which the insured is legally liable, up to the policy limit. It also covers legal expenses when there has been no wrongdoing.
Key Employee Insurance
Life or disability income insurance can compensate a business when certain key employees die or become disabled. These coverages cushion some of the adverse financial impact that results from losing a key employee’s participation.
A Business Umbrella Insurance policy protects you in a claim when your general business liability limits are exhausted, and you are faced with a lawsuit and potentially risking the entire value of your business. An umbrella liability policy provides coverage over and above a business’s other liability coverages. It is designed to protect against unusually high losses. If a company has employment practices liability insurance, directors and officers liability, or other types of liability insurance, the umbrella could provide protection beyond those policy limits as well.
Please give us a call at (636) 449-1213 and have your insurance policy information ready. Our Commercial Insurance Specialist will obtain the information to begin working on your no obligation risk assessment and quote.