Commercial Insurance FAQs
- Just starting a business, do I need insurance right away?
- Is insurance coverage different for different businesses?
- What type of business customers do you insure?
- What are my coverage options?
- What is included in Building coverage?
- What is Business Personal Property?
- What type of property do I need to insure?
- If I rent office space in a building, do I need to insure my Business Personal Property?
- What is Business Income coverage?
- What is D&O coverage?
- What is EPLI (Employee Practices Liability Insurance) coverage?
- What happens to my equipment and/or inventory not typically at my named location?
- What is Flood Insurance and is it included on my Business policy?
- Who has to provide workers’ compensation insurance?
- Can the insurance company cancel my Workers Compensation policy mid-term?
- Can an executive officer be excluded from workers’ compensation insurance coverage?
- Do I need a Business Auto policy for my company-owned vehicle?
Q. Just starting a business, do I need insurance right away?
A. Yes, it is important to get insurance the first day of your business. If you are renting a space, landlords will require that you have insurance, insuring your Business Personal Property and General Liability. The proof of insurance is usually forwarded by us to your landlord via a Certificate of Insurance. Workers Compensation is statutorily needed as well.
Q. Is insurance coverage different for different businesses?
A. All businesses vary, so it is impossible to have a standard policy to cover all types of businesses. Also some businesses, regardless of their size, do not fit the profile of a standard Business Owners policy (BOP). For example, garages have special liability needs that are not met in the standard Business Owners policy. We can find the best coverage and policy to protect you and your business.
Q. What type of business customers do you insure?
A. We help all types of businesses and property owners with their insurance needs. The following list is a sample of some of our customers just to a name a few;
- 1. Small businesses, Medium sized businesses, & Large diversified businesses
- 2. Commercial Buildings
- 3. Manufacturing Companies
- 4. Wholesalers & Retailers
- 5. Commercial Real Estate Developers
- 6. Apartment Buildings
- 7. Restaurants
- 8. Technology Companies
- 9. Schools
- 10. Gas Stations
- 11. Service Stations
- 12. Transportation
- 13. Contractors
- 14. Consultants
- 15. Law Offices
Q. What are my coverage options?
A. You have a wide range of COVERAGES, limits and deductibles available to you and your business depending upon a number of factors. Whether you own a small business or a large diversified business, we will tailor your coverage to your specific needs and exposures, by first learning about your business, listening to your individual needs and requirements, and then delivering the coverage to you.
Q. What is included in Building coverage?
A. BUILDING COVERAGE includes the building or structure described, including completed additions, fixtures, permanently installed equipment & machinery. Building Property coverage will protect and pay for direct physical loss of or damage to Covered Property subject to exclusions.
Q. What is Business Personal Property?
A. BUSINESS PERSONAL PROPERTY is all your Furniture, Machinery, equipment, “Stock”, all other personal property owned by you and used in your business, personal property of others in your care custody and control and leased personal property in which you have contractual responsibility. Business Personal Property coverage pays for direct physical loss of or damage to Covered Property subject to exclusions.
Q. What type of property do I need to insure?
A. You business could have some of the following types of property that should be insured, such as Building and other structures , furniture, equipment and supplies, inventory, improvements and betterments, machinery, boilers, records of account receivables, valuable papers, signs, fences and other outdoor property not attached to a building, computers and media, leased equipment. You can use this listing as a reference to consider all your property coverages that you may need and we can help you establish the amount of insurance you may need on each.
Q. If I rent office space in a building, do I need to insure my Business Personal Property?
A. Yes, insuring your building or your contents in a building you rent or lease is important. Some of the factors you should consider when evaluating what and how much to insure; What is the cost to replace the property in the event of a total loss? How likely is it for the value of your property to fluctuate? Will inventory vary over the course of the policy year? Do you have peak season? Is your property subject to any unique causes of loss? Do you have perishable inventory?
Q. What is Business Income coverage?
A. BUSINESS INCOME INSURANCE (also known as BUSINESS INTERRUPTION INSURANCE) Commercial coverage that reimburses a business owner for lost profits and continuing fixed expenses during the time that a business must stay closed while the premises are being restored because of physical damage from a covered peril, such as a fire.
Q. What is D&O coverage?
A. DIRECTOR & OFFICERS LIABILITY INSURANCE (Also known as D&O coverage) protects the Directors and Officers of a company for negligent acts or omissions, and for misleading statements that result in suits against the company, often by shareholders. Directors and Officers (D&O) insurance policies usually contain two coverages:
1.Personal coverage for individual directors and officers who are not indemnified by the corporation for their legal expenses or judgments against them – some corporations are not required by their corporate or state charters to provide indemnification; and corporate reimbursement coverage for indemnifying directors and officers.
2. Entity coverage for claims made specifically against the company may also be available.
Q. What is EPLI (Employee Practices Liability Insurance) coverage?
A. EMPLOYMENT PRACTICES LIABILITY COVERAGE is Liability insurance for employers that covers employers for alleged wrongful termination, discrimination, or sexual harassment charges made by the insured’s employees or former employees.
Q. What happens to my equipment and/or inventory not typically at my named location?
A. Certain businesses take their tools and equipment with them, such as Contractors, repair or service businesses and certain manufacturer rely on equipment that is off-site. Also, companies can be at risk for equipment stored off premises or in transit. We can design a policy that will insure this type of property is covered anywhere in the world.
Q. What is Flood Insurance and is it included on my Business policy?
A. FLOOD INSURANCE coverage is excluded under most commercial property policies. Flood Insurance coverage for flood damage is available from the federal government under the National Flood Insurance, or can be added by endorsement.
Q. Who has to provide workers’ compensation insurance?
A. Most states require that you carry some form of workers compensation insurance. Specifically, every Massachusetts employer is required to provide workers’ compensation insurance coverage for their employees. Refer to M.G.L. Chapter 152, Section 25A. An employer may be an individual, partnership, joint venture, corporation, limited liability company, association, or a fiduciary such as a trustee, receiver or executor, or other legal entity.
Q. Can the insurance company cancel my Workers Compensation policy mid-term?
A. Yes, the insurance company can cancel a policy mid-term for one of the following reasons only: non-payment of premium, fraud or material misrepresentation, or substantial increase in the hazard being insured.
Q. Can an executive officer be excluded from workers’ compensation insurance coverage?
A. According to M.G.L. c. 152, Section 1(4) as amended by Chapter 169 of the Acts of 2002, workers’ compensation coverage is elective for an officer or director of a corporation who owns at least 25% of the issued and outstanding stock of the corporation. For corporate officers to become exempt from coverage, a Form 153 must be filed with and approved by the Department of Industrial Accidents in accordance with Regulation 452 CMR 8.00. A copy of the filed and approved Form 153 must be mailed by the employer to their insurance carrier. Insurance carriers who receive an approved Form 153 should endorse the policy with NCCI endorsement WC000308 – Partners, Officers and Others Exclusion Endorsement. Refer to Circular Letter No. 1902.
Q. Do I need a Business Auto policy for my company-owned vehicle?
A. Yes, you will need a business automobile policy, whether you have one company-owned vehicle or several being used for company business. The policy covers any motor vehicle used in your business including cars, vans, trucks and trailers pulled by trucks and offers coverage if they are damaged or stolen. It also covers liability if the business vehicle is in an accident which cause, Bodily Injury or Property Damage.
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