Insurance Coverage For Small BusinessesThe purpose of
insurance is to transfer a risk that you can afford (i.e. the payment of a insurance premium with no guarantee of its return ) to cover a risk you cannot afford. For example, what homeowner does not
insure their personal residence from damage due to fire?
Besides your attorney and accountant, another professional you need is your insurance agent. It may be helpful to have one agent who can handle all of your insurance needs like the Dearborn Agency. There are policies available that are specifically designed to cover small businesses that, will cover most of your insurance needs.
Insurance is not only important to you but it will be important to your other business relationships in Dearborn Michigan. For example, if you lease office space, the landlord will typically require a certificate of insurance or be listed as an additional insured on your policy as assurance that your business will not disappear overnight in the event a loss occurs.
Here are some risks to be protected by insurance:
Business Property Insurance Property insurance should include a broad form of coverage to protect you from a wide variety of losses. Your insurance should include:
Buildings: Insurance Coverage would be required here if you own the building your business occupies in Dearborn. In the event you lease premises, your landlord should provide this coverage.
Business personal property includes your tables, desks, chairs and equipment. Also, you will want to include the tenant's improvements you might make to leased premises. An example would be a room divider you add, or a display case, or a custom built counter that forms part of reception area for your clients. Earthquake Insurance
Flood Insurance(which may or may not be available)
Keep in mind that an all-risk policy can be structured to cover all of your equipment, including computer hardware and software, plus your valuable records. A properly written policy will include loss of income , as well as loss of income from other hazards that would close down your business.
Liability Insurance A Comprehensive General Liability (CGL) policy is designed to provide coverage to third parties for the following:
Personal Insurance and Advertising Injury
Fire Legal Liability, which is often mandatory if you lease your premises. This protects you in the event your negligence results in damage or loss to your Dearborn landlord's property. For example: you mistakenly leave a small electric space heater running and go home for the evening. During the night, the heater shorts and starts a fire, resulting in fire and smoke damage to your landlord's building. This is where Fire Legal Liability protects your investment.
Medical Insurance or Medical Payments
Medical Insurance from many providers.
General Liability for your premises. The best illustration is the common "tripping over the torn carpet, resulting in an injury" loss.
Some insurance policies will exclude Products and Completed Operations and/or Personal Injury and Advertising Coverage depending on the services your business provides. In these instances, a Professional Liability, Malpractice Insurance, or Errors and Omissions Policy might be available for your type of operation that will cover the suits against your company. This is particularly true of professions that are held to a higher degree of care or standard, for example, attorneys, engineering consultants, insurance agents, realtors, doctors and dentists.
Worker's Compensation Insurance If your business has employees,
Worker's Compensation insurance will be mandatory. Startup operations typically find that the State Compensation Fund can accommodate their needs. As the business grows, you can get better prices for the coverage. In addition, some worker's compensation insurers provide additional services such as risk management and loss control services that may be beneficial. These services are typically helpful in holding down claim costs over the long term. The insurance company should assume 100% of the worker's compensation insurance risks.
Auto InsuranceAuto Insurance coverage for company vehicles. (Liability, Comprehensive, Collision and Uninsured/Underinsured Motorists.)
Health insurance plans tailored to fit the size of your business. This coverage will help give you an edge when recruiting good employees.
Here's a type of insurance you might not think about: when you're not there-and when only your answers will do, it is good idea to have a guide prepared for your employees to know what-to-do, who-to-call and where-to-find-it information so as to maintain the momentum of your business.
Excess Liability Coverage by our
insurance agentsThese are liability limits available over and above the maximum limit your carrier of choice may write. They can be accomplished in two ways:
Excess limits can typically be added at extra cost to the underlying package policy in "chunks" of $500,000 or $1 million dollar layers sometimes up to $5 million. Dearborn Michigan is our home.
Commercial InsurancePurchasing what is called a " commercial umbrella " This can typically provide excess coverage over and above most underlying package policies, including the
business policy,
business auto, and worker's compensation.
Employment Practices Liability Coverage in Dearborn MI
Employment Practices
Liability insurance is a coverage that is starting to be carried by more insurance companies, with premiums exceeding $2,000 annually for $1 million of coverage. While employment practice liabilities are rarely encountered in small operation, the threat of wrongful termination lawsuits, excluded under most business policies.
Life InsuranceIf you have a partner, your buy-sell agreement can be funded by
life insurance in the event of the death of a partner. As your business grows this insurance can be increased. And so you can see our
insurance claims.