Business Insurance

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To determine your business insurance needs, you should review your property and risks. Your property is the building and equipment you own. Your risks are the financial responsibilities you have for the people and property your business employs.

Business insurance coverage is available for every conceivable risk your business might face. Cost and amount of coverage of business insurance policies vary among insurers. You should discuss your specific business risks and the types of insurance available with your insurance agent or broker. Your agency can advise you on the exact types of insurance you should consider purchasing.

Finding the best business insurance plan to protect your business is one of the many important decisions a small-business owner makes. We will help find you the best business insurance to fit your needs at an affordable rate.

Types of Business Insurance:

	General Liability Insurance
	Workers Compensation Insurance
	Bonds
	Boiler and Machinery Insurance
	Business Income Insurance
	Extra Expense Insurance
	Cargo and Transportation Insurance
	Errors and Omissions Insurance
	Fidelity Insurance
	Flood Insurance
	Liability Insurance
	Professional Liability Insurance
	Commercial Property Insurance
	Product Liability Insurance
	Home-Based Business Insurance
	Business Owners' Policy
	Disability Income Insurance
	Glossary

General Liability Insurance

Business owners purchase general liability insurance to cover legal hassles due to accident, injuries and claims of negligence. These policies protect against payments as the result of bodily injury, property damage, medical expenses, libel, slander the cost of defending lawsuits, and settlement bonds or judgments required during an appeal procedure.

Workers Compensation Coverage

Workers' compensation coverage provides medical and partial wage replacement benefits to employees injured as a result of work-related activity. This coverage also provides the employer protection from the threat of a civil lawsuit by an employee with a work-related injury. This coverage is provided by a workers' compensation policy, secured by the employer.
The type of business-defined by classification codes as either construction or non-construction-and the business structure are the key factors in determining when coverage is required.
Applications for election of coverage or exemption from coverage must be filed with and approved by the Florida Department of Financial Services (DFS), Division of Workers' Compensation. These applications have specific requirements and may require submission of additional documentation. Applications and instructions are available at the Division's Web site at www.MyFloridaCFO.com/wc.
Florida law requires business owners to purchase workers' compensation and commercial automobile insurance under the following guidelines:
Workers' compensation insurance is required for any non-construction business employing four or more people and any construction business with at least one employee

Commercial Automobile Coverage

If your business owns, leases or operates motor vehicles, you must obtain commercial automobile coverage. Requirements and options vary, so check with your insurance agent to determine what types of coverage you need. You also should contact your city and county government and the U.S. Department of Transportation to check for any other requirements.
Commercial motor vehicle coverage is similar to the auto insurance most people carry on their personal cars. Most policies include property coverage for your vehicle, as well as liability coverage for damage caused by an employee driving a company vehicle. If you are using your personal automobile for business purposes, you may not be covered, as the rules and guidelines are different for each insurance company. Review the business use of your personal vehicle with your insurance agent to be sure you are covered. Commercial automobile coverage is required for businesses that own, lease or operate a motor vehicle.

City And County Requirements

While workers' compensation and commercial automobile coverage may be the only coverage required by Florida law, the city or county you operate in may have additional requirements. Call the occupational license office in your county or city to find out if you need additional insurance.

Banks or Lending Institutions

Though not required by law, your bank or lending institution may require you to purchase property coverage if you borrow money to pay for buildings, equipment or any other property for your business.
This protects the lender's interest, and it allows you to repair, replace or pay off loans for items that are damaged or destroyed. Leased equipment or property also could have insurance requirements. Check your lease agreement for details.

Business Owners' Policy (Packaged Products)

Even if the law does not require your business to carry insurance, you may want to purchase some coverage to protect you, your property and your assets. This coverage is sold as a package policy that includes several types of insurance. For example: Property, liability and automobile coverage could make up a package policy. Different businesses have different needs. Ask your agent to help you choose the type of insurance coverage that best suits you. Here are some brief descriptions of the many types of insurance available to business owners. Insurance can be purchased separately or in a package called a business owners' policy (BOP). Purchasing separate policies from different insurers can result in higher total premiums. A BOP combines typical coverages into a standard package, and offered at a premium that is less than if each type of coverage was purchases separately. Typically, BOPs consist of cover property, general liability, vehicles, business interruption and other types of coverage common to most types of businesses. BOPs simplify the insurance buying process and can save you money. However, make sure you understand the extent of coverage in any BOP you are considering. Not every type of insurance is included in a BOP. If your business has unique risks, you may require additional coverage.

Bonds

Bonds guarantee that you will perform a specific action or provide work of a certain quality. For example, if a bonded builder fails to perform as agreed, the client can get some money back through a settlement.

Boiler And Machinery Insurance

Boiler and machinery insurance pays for loss or damage to your property resulting from a sudden and accidental breakdown of equipment.

Business income

Business income or interruption insurance pays lost earnings if you must suspend operation of your business because of an insured property loss.

Extra Expense Insurance

Extra expense coverage reimburses your business for any added expenses incurred during the restoration period following damage to the business and impairment of its operations as the result of an insured loss.

Cargo and Transportation Insurance

Cargo and transportation insurance covers your company's goods and products while they are in transit.

Errors and Omissions Insurance

Errors and omissions insurance protects professionals from losses caused by their errors or oversights.

Fidelity Iinsurance

Fidelity insurance covers business clients or owners for losses due to dishonest acts by owners or employees.

Flood Insurance

Flood insurance covers losses to your building(s) and its contents due to flooding.

Liability Insurance

Liability insurance protects your business from financial loss as a result of injuries, death or property damage caused by your products, business operations or employees. There are two types:

Premises-and-operations provides coverage for accidents, such as "slip and fall" incidents, on your property.
Products-and-completed-operations helps pay for monetary losses resulting from injury or damage caused by a product or completed job.

Professional Liability Insurance

Pays liability claims arising from wrongful practice by physicians, attorneys or other professionals. Business owners providing services should consider having professional liability insurance (also known as errors and omissions insurance). This type of liability coverage protects your business against malpractice, errors, negligence in provision of services to your customers. Depending on your profession, you may be required by your state government to carry such a policy. For example, physicians are required to purchase malpractice insurance as condition of practicing in certain states.

Commercial Property Insurance

Property insurance covers everything related to the loss and damage of company property due to a wide-variety of events such as fire, smoke, wind and hail storms, civil disobedience, and vandalism. The definition of "property" is broad, and includes lost income, business interruption, buildings, computers, company papers and money. Commercial Property Insurance protects business property and physical assets. There are three main types:

Named-peril coverage specifies the events that the policy will cover. For example, you may buy a named-peril policy as protection from losses caused by fire, explosion and smoke. Examples of peril-specific policies include fire, flood, crime, and business interruption insurance.
Comprehensive coverage provides broader coverage for all perils, except those specifically excluded in the policy.
Windstorm insurance pays for losses to buildings and their contents caused by windstorms (such as hurricanes and tornadoes) or hail. Finding the best insurance plan to protect your business is one of the many important decisions a small-business owner makes. This guide explains required and optional coverage you need to consider. To determine your business insurance needs, you should review your property and risks. Your property is the building and equipment and inventory you own. Your risks are the financial responsibilities you have for the people your business employs.

Disability Income Insurance

You also may offer your employees disability income insurance to provide them with income if they become disabled from illness or injury and cannot work. Disability income insurance replaces a significant portion of an individual's income through periodic payments while the individual is disabled due to sickness or injury. Disability income benefits provide monthly or weekly payments of a specified amount for a period of time stated in the policy. Disability income insurance comes in both short- and long-term coverage.

Short-term disability income insurance generally refers to policies with a maximum benefit coverage of two years or less, although some companies may apply this designation to policies with benefit coverage of up to five years.

Long-term coverage includes policies with maximum benefit periods of 10 years, to age 65, or in a few instances, for the lifetime of the insured. For the first 12 months of the disability, this type of income policy must provide benefits if the policyholder is unable to perform material and substantial duties of his or her regular occupation. After the first 12 months, the company may base the continuance of benefits on the person's ability to perform any work for which he or she is reasonably trained.

Product Liability Insurance

Companies that manufacture, wholesale, distribute, and retail a product may be liable for its safety. Product liability insurance protects against financial loss as result of a defect product that cause injury or bodily harm. The amount of insurance you should purchase depends on the products you sell or manufacture. A clothing store would have far less risk than a small appliance store, for example.

Home-Based Business Insurance

Contrary to popular belief, homeowners' insurance policies do not generally cover home-based business losses. Depending on risks to your business, you may add riders to your homeowners' policy to cover normal business risks such as property damage. However, homeowners policies only go so far in covering home-based businesses and you may need to purchase additional policies to cover other risks, such as general and professional liability.

Property Insurance:

REPLACEMENT COST VS. ACTUAL CASH VALUE

With property insurance, you can buy either replacement cost or actual cash value coverage.

Actual cash value (ACV) insurance pays the cost of damaged property and goods after deducting for their depreciation. For example, if you paid $2,000 for a computer five years ago, ACV would only pay its current value, say $500.

Replacement cost coverage is more expensive. It pays the cost of replacing your property without deducting for depreciation. You should compare the premiums for replacement cost versus actual cash value when buying or renewing a policy.

Purchasing Options:

In Florida, you have the option of purchasing your insurance through a variety of insurance organizations, depending on the type and size of your business. Many authorized insurers are licensed to sell commercial insurance in Florida. Also, surplus lines insurers can provide coverage for businesses and professionals in high-risk situations. There are risks and limitations associated with both types of insurance providers. The following sections outline these organizations and explain how they are licensed and regulated.

Authorized Insurers

An authorized insurer is a company authorized by the DFS to sell insurance. Most business owners seek coverage through authorized insurers and the licensed agents who represent them. The Department requires authorized insurers to regularly submit their rates, financial standing, premiums, claims and policy forms for review.

Five Tips for Buying Business Insurance

1. Assess Your Risks

Insurance companies determine the level of risk they'll accept when issuing policies. This process is called underwriting. The insurance company reviews your application and determines whether it will provide all or a portion of the coverage being requested. Each underwritten policy carries a premium and a deductible. A premium is the price you pay for insurance.

Premiums vary widely among insurance companies, and depend on a number risk factors, including your business location, building type, local fire protection services, and the amount of insurance you purchase. A deductible is the amount of money you agree when making a claim. Generally, the higher deductible you agree to pay, the lower your premium will be. However, when you agree to take on a high deductible you are taking on some financial risk. So, it's important to assess your own risks before you go shopping.

2. Shop Around

The extent and costs of coverage vary from company to company. Some brokers specialize in insuring specific types of business, while others can connect you with policies specific to your business activities. For example, if you operate a tow truck service, you'll want to find an agent that can help find policies that specifically cover automotive service businesses. Often specialist brokers can get you the best coverage and best rates. This is where we come in. We will comparison shop your insurance to find the best quote, and top-rated insurance company to fit your needs.

3. Consider a Business Owners' Policy

Insurance can be purchased separately or in a package called a business owners' policy (BOP). Purchasing separate policies from different insurers can result in higher total premiums. A BOP combines typical coverages into a standard package, and offered at a premium that is less than if each type of coverage was purchases separately. Typically, BOPs consist of cover property, general liability, vehicles, business interruption and other types of coverage common to most types of businesses. BOPs simplify the insurance buying process and can save you money. However, make sure you understand the extent of coverage in any BOP you are considering. Not every type of insurance is included in a BOP. If your business has unique risks, you may require additional coverage.

4. Find a Reputable, Licensed Agent

Commercial insurance brokers can help you find policies that match your business needs. Brokers receive commissions from insurance companies when they sell policies, so it's important you find a broker that is reputable and is interested in your needs as much as his own. Make sure your broker understands all the risks associated with your business.

Finding a good insurance agent is as important as finding a good lawyer or accountant. You should always look for one that has a license. State governments regulate the insurance industry and license insurance brokers.

We are business owners. We understand the challenges that come with owning and running a business, and can help you with all of your insurance needs.

5. Assess Your Insurance Coverage on an Annual Basis

As your business grows, so do your liabilities. You don't want to be caught underinsured should disaster strike. If you have purchased or replaced equipment or expanded operations, you should contact your insurance broker to discuss change in your business and how they affect your coverage.

Glossary

Loss - A loss is an occurrence or event resulting in damage or destruction of property, injury or death. A policy may cover, limit or exclude certain losses, depending on the terms of the policy.

Named Perils - Named perils are specific, named causes of losses that are covered in a property policy. Some examples are fire, windstorm, theft and smoke damage.

Pool - A pool is an organization of insurers that band together to write insurance jointly for applicants who are unable to get coverage through ordinary methods.

Preferred Provider Organization (PPO) - A PPO offers another kind of provider network to meet the health care needs of consumers. A traditional insurance carrier provides the health benefits. An insurer contracts with a group of health care providers to control the cost of providing benefits to consumers. These providers charge lowerthan- usual fees because they require prompt payment and serve a greater number of patients. Consumers usually choose who will provide their health services, but pay less in coinsurance with a preferred provider than with a non-preferred provider.

Risk - Risk is a chance of loss to insured persons, liabilities or properties.

Risk Management - Risk management is the management of the various risks that might affect a business. Its purpose is to identify potential loss situations and to control or reduce them through safety and insurance programs.

Third-Party Administrator - A third-party administrator is a business licensed by DFS to handle claims for insurance companies or self-insured programs.

Unauthorized Insurer - An unauthorized insurer is an insurance company not issued a Certificate of Authority to conduct business in a particular state.

Agent - An agent is a person who sells and services insurance policies. Agents must be licensed by DFS to sell insurance in Florida.

Authorized Insurer - An authorized insurer is an insurance company that has a Certificate of Authority from DFS to operate in Florida.

Commercial Liability - Commercial liability is an insurance policy written for businesses to cover negligent acts that cause injury or damage to persons or property unrelated to the business.

Deductible - A deductible is the amount that a policyholder must pay before the insurance company pays.

Domestic Insurer - A domestic insurer is an insurance company formed under Florida laws.

FIGA (Florida Insurance Guaranty Association) - A non-profit corporation of licensed property and casualty insurance writers that pays most claims for policyholders if an insurer becomes insolvent.

FLAHIGA (Florida Life and Health Insurance Guaranty Association) - An association comprising all life and health casualty companies authorized to operate in Florida that pays most claims for policyholders if an insurer becomes insolvent.

Foreign Insurer - A foreign insurer is an insurance company formed under the laws of a state other than Florida, but which offers policies in Florida.

Group Insurance - Group insurance is an insurance policy written on a group of people under a single master policy.

Insured - The insured are persons and items covered under an insurance policy.

Insurer - The insurer is the company that provides the insurance.

Liability Limits - The liability limit is the maximum amount of benefits your insurance company will pay for liability claims or losse