Business Owner's Policy (BOP)

Refers to the insurance package, which is a combination of both property insurance and liability insurance. It can be attractive to small businesses because it eliminates having to purchase separate policies for property insurance and liability insurance. A Business owner’s policy is not suitable for the large businesses because they do not meet the eligibility criteria for this policy. Insurance companies feel that large businesses involve greater amount of risk so they do not consider them for BOP.

Employment Practices Liability

It provides protection for an employer against claims made by employees, former employees, or potential employees. It covers discrimination (age, sex, race, disability, etc.), wrongful termination of employment, sexual harassment, and other employment-related allegations. It covers your business, including its Directors and Officers.

It is needed as soon as you start to hire employees. Most investors and directors will require that you carry this coverage as part of your Directors and Officers Liability Insurance since they can also be held liable in suits relating to employment practices.

Cases against employers are on the rise. It is estimated that three out of five firms will be sued by an employee. Companies are finding that they are vulnerable from the pre-hiring process through the exit interview.

It could be an individual you had to fire or that person you chose not to hire.
New businesses are especially vulnerable because there are oftentimes no real rules or procedures set by management.

Every employer faces the reality that it will be the target of legal action from past, present and prospective employees. Even if the claim is groundless or fraudulent, the defense of a suit can be expensive in time, resources and financially.

We definitely recommend this coverage to anyone with Employee’s.

Directors and Officers Liability (D & O)

Directors and Officers Liability Insurance provides financial protection for the directors and officers of your company in the event they are sued in conjunction with the performance of their duties as they relate to the company. Think of Directors and Officers Insurance as a management Errors and Omissions policy.

Directors and Officers Liability Insurance is needed when you form a board of directors

Directors & Officers Liability Insurance can usually include Employment Practices Liability and sometimes Fiduciary Liability. The former involves harassment and discrimination suits, and is where the majority of your exposure will be.

You will need Directors & Officers Insurance because claims from stockholders, employees, and clients will be made against the company, AND against the directors of the company. Since a director can be held personally responsible for acts of the company, most directors and officers will demand to be protected rather than put their personal assets at stake.

You will also need Directors and Officers Insurance because: Investors and members of your board of directors will not be willing to risk their personal assets to serve as a corporate director or officer, no matter how strong their belief in your company.

Lastly, employment practices suits constitute the single largest area of claim activity under D&O policies. More than 50% of D&O claims are employment practices related.

Errors and Ommissions Insurance (E & O) - Professional Liability

Errors and Omissions Insurance protects your company from claims if your client holds you responsible for errors or failure to perform as promised in your contract.

Coverage includes legal defense costs - no matter how baseless the allegations. Errors and Omissions Insurance will pay for any resulting judgments against you, including court costs, up to the limits on your policy.

Errors & Omissions Insurance coverage extends to both W2 employees and 1099 subcontractors, and can be worldwide in scope.

We generally recommend Errors & Omissions Insurance be at the foundation of every company’s insurance portfolio. Usually it is wise to purchase the coverage prior to product launch, or when you have customers. It can be required by investors, particularly Venture Capitalists.

Professional Liability - Errors & Omissions Insurance - coverage is not provided by a Commercial General Liability policy. Commercial General Liability does NOT provide coverage for errors, contract performance disputes or any other Professional Liability issues. Companies who have General Liability without Professional Liability - Errors and Omissions Insurance -coverage are taking a serious risk. It’s like a doctor practicing medicine without Malpractice Insurance.

Mistakes Happen. Every company messes up at some point. You Can’t Be Everywhere. Sometimes you can’t personally handle every job. Errors and Omissions coverage insures not only your mistakes, but also the mistakes of your employees and Independent Contractors you hire.
Most Importantly: Errors and Omissions insurance might save you from extreme embarrassment, a lost client, or worse than that… a bad reputation.

We generally recommend Errors & Omissions Insurance be at the foundation of every company’s insurance portfolio. It is wise to purchase the coverage prior to product launch, or when you have customers.

Worker’s Compensation Insurance

Employers have a legal responsibility to their employees to make the workplace safe. However, accidents happen even when every reasonable safety measure has been taken.

To protect employers from lawsuits resulting from workplace accidents and to provide medical care and compensation for lost income to employees hurt in workplace accidents, in almost every state, businesses are required to buy workers compensation insurance. Workers compensation insurance covers workers injured on the job, whether they're hurt on the workplace premises or elsewhere, or in auto accidents while on business. It also covers work-related illnesses.

Workers compensation provides payments to injured workers, with no regard to who was at fault in the accident, for time lost from work and for medical and rehabilitiation services. It also provides death benefits to surviving spouses and dependents.

Each state has different laws governing the amount and duration of lost income benefits, the provision of medical and rehabilitation services and how the system is administered. For example, in most states there are regulations that cover whether the worker or employer can choose the doctor who treats the injuries and how disputes about benefits are resolved.

Commercial Auto

As a businessowner, you need the same kinds of insurance coverages for the car you use in your business as you do for a car used for personal use. Many business people use the same vehicle for both business and personal. If the vehicle is owned by the business, make sure the name of the business appears on the policy as the "principal insured" rather than your name. This will avoid possible confusion in the event that you need to file a claim or a claim is filed against you.

Whether you need to buy a business auto insurance policy will depend on the kind of driving you do and sometimes by the type of vehicle you own. We’ll ask you many details about how you use vehicles in your business, who will be driving them and whether employees, if you have them, are likely to be driving their own cars for your business.

While the major coverage’s are the same, a business auto policy differs from a personal auto policy in many technical respects. Ask one of our agents to explain all the differences and options.

If you have a personal umbrella liability policy, there's generally an exclusion for business-related liability. Make sure you have sufficient auto liability coverage.

Business Insurance Package Policy

A General Liability and property package policy includes General Liability insurance to cover your commercial liability and property insurance for physical assets, such as contents, that are leased or owned. The package insurance policy may also cover loss of business income and extra expense resulting from a covered peril.

A business insurance package policy generally insures lost or damaged property for replacement value, which means you'll receive a settlement amount sufficient to replace the property without deducting for depreciation. The Property insurance portion of a General Liability and property package policy also covers other people's personal property to the extent that the business owner is legally liable for the damage.

Commercial General Liability Insurance - CGL

The General Liability insurance coverage of a BOP is comparable to a typical Commercial General Liability (CGL) policy, providing protection against claims of bodily injury or property damage for which your business may be liable.

Insurance to Protect You Against Lawsuits Unfortunately for every business owner, the chances of getting sued have dramatically increased in the last decade. Fortunately for small business owners, Here are just a few of the ways liability insurance can protect your business.

The General Liability Policy extends liability protection to a number of people involved in your business.

• If your business is a partnership or joint venture, this policy would cover all partners or members and their spouses -- but only if they're sued because of something they did while acting in an official capacity for your business.

• If your business is a corporation or association, this policy would also cover all executive officers, directors, and stockholders -- while acting in these official capacities.

• Your employees would also be protected -- while they are acting in their capacity as employees.

• Your policy would also extend liability coverage to any subsidiary for which you own more than 50% of the voting stock.

• Any person or organization, such as a vendor, with whom you have a written agreement to indemnify, would also be protected against liability claims for any bodily injury or property damage that results from distributing or selling your products.

• Any newly acquired organization would also be protected under your policy for 90
days to newly acquired companies.

• Your legal representatives would also have liability coverage under this policy -- for any liability arising from the maintenance or use of your property in their care.

• While acting under your direction and within the scope of their responsibilities for you, any volunteers for your business would also be extended liability coverage.

A General Liability Policy is designed to provide financial protection in case your business is ever sued or held legally responsible for some injury or damage. Typical expenses this policy may cover include:

• Amount the insurer spends to investigate or defend the claim or suit brought against you;

• Other costs incurred directly by the insurance company, such as attorney's fees, witness fees, and police report costs;

• Any court costs or other costs assessed against you in a lawsuit;

• Reasonable expenses you incur at the insurance company's request to aid in your defense against a claim (such as your loss of income for a day spent in court);

• Any judgment or settlement arising from a covered suit;

• Any required interest on the judgment if the defense is unsuccessful;

• Medical expenses for injured parties;

• Premiums for any bonds required by a liability suit.

What General Liability Protection Can Provide

Bodily Injury
Of course, no small business owners like to think that something their company does or doesn't do could injure, even kill someone else. But it's comforting to know that if you are ever held legally responsible for such an injury, sickness or disease, General Liability coverage will pay the affected person or organization for:

• The cost of care;

• The loss of services; and

• Restitution for any death that results from the injury.

Property Damage
Regardless of how careful you are, you may find yourself in a situation where something your business does or doesn't do damages someone else's property. Even if you don't physically injure that property, you may do something that actually prevents its owner from continuing to use it. If so, you'll rest easier knowing that General Liability coverage will compensate the property's owner for either:

• The physical damage to the property; or

• The loss of use of that property.

Products-Completed Operations
General Liability typically includes liability protection for your company's completed products or services. This means that, if an injury ever resulted from something your company made or some service your company provided, your policy would pay for the resulting damages and any legal expenses (up to your policy's limit). And if you were sued because of these damages, your policy would cover related defense costs regardless of who was at fault -- in addition to your policy's limit.

Contractual Liability
General Liability coverage extends to any liability you may assume by entering into a variety of different types of contracts, including:

• A building lease;

• Any easement of license agreement;

• An agreement to indemnify a town or city if required by ordinance;

• An elevator maintenance agreement

• Liquor Liability

As long as you're not in the business of manufacturing, distributing, selling, serving or furnishing alcoholic beverages, the General Liability policy will protect you in case someone claims you are legally liable for a liquor-related accident. This means that, as long as you don't charge for the alcohol, you would be covered if you occasionally distribute alcoholic beverages -- such as at any annual company picnic or a holiday office party.

Employee Injuries
If one of your employees ever sues you for an injury you supposedly caused, your General Liability policy would not cover any damages. Rather, this type of protection would be provided by your Workers' Compensation policy.

Fire, Lightning or Explosion Damage
Whether you rent or own your business property, you'll find it reassuring that the insurance plan for small businesses includes coverage for damage to property of others resulting from fire, lightning or explosion damage caused by you. Better yet, this coverage applies to other parts of the building you occupy that may be damaged due to your negligence. For example, if you rent the second floor of a building, and through your negligence cause fire damage to the first floor, your liability policy will also cover the damage you've caused to your neighbor's office space.

Hired Auto & Non-Owned Auto
Hired Auto & Non-Owned Auto coverage is typically added as an endorsement on a General Liability policy. When there are no vehicles titled in the company name this coverage will meet the contract requirement for Commercial Auto coverage.

Hired Auto coverage replaces or augments the liability coverage offered by auto rental agencies. However, the vehicle must be rented in your company's name and this does not replace the physical damage coverage that applies to any damage you cause to the vehicle you are renting. You should still obtain physical damage coverage from the rental agency.

Non-Owned Auto coverage protects your company in the event that your company is sued as a result of an auto accident that you or one of your employees has in a personal vehicle while on company business. This coverage will not protect you or your employee personally, only your personal auto policy will do that.

Legal Defense Costs
Even if your company is not legally responsible for some claim someone makes against you, it can be quite expensive to defend yourself against such claims. Fortunately, your liability policy will typically pay for:

• Any defense costs incurred directly by the insurance company, including attorney's fees, witness fees, and police reports;

• Any court costs or related costs you're charged in connection with a lawsuit;

• Reasonable expenses you incur at the insurance company's request to assist in your defense (such as loss of earnings if you have to testify in court). Your liability policy will also pay the premium for any bond the court requires, making sure judgment will be paid if you are found legally liable for some injury or damage.

Medical Payments
If someone is accidentally injured either by you or at your business site, General Liability coverage will pay for medical and funeral expenses incurred within one year of the accident (up to your policy's liability insurance limit). For example, if a customer slipped and fell on your premises and had to undergo medical treatments.

Personal Injury
Something your business either does -- or fails to do -- may not physically harm a person, but it may personally injure them. If so, you'd want to know that your liability coverage would protect you from any lawsuits arising from such an injury. Most General Liability policies provide coverage if you are accused of: • publishing (either verbally or in writing) inaccurate information that slanders or libels a person or organization; • publishing material that violates a person's right of privacy; • falsely arresting, detaining or imprisoning someone; • maliciously prosecuting someone; • wrongfully evicting someone.

Advertising Injury
If you are ever sued because of something that happened during the course of advertising your company's own goods, products or services, this policy will provide valuable liability protection. Such advertising injuries may result from:

• publishing (either verbally or in writing) inaccurate information that slanders or libels a person or organization;

• publishing material that violates a person's right of privacy;

• copying some other company's advertising ideas or style of doing business;

• infringing on another company's copyright, title or slogan.

Inland Marine Insurance

Inland marine insurance is primarily aimed at providing coverage for goods actually in transit, goods held by a bailee, a motor carrier or a warehouse operator, and coverage for a portable type of goods. However it also encompasses coverage for projects under construction and coverage for complete constructions when they are instruments of transportation and communication (bridges, tunnels and transmission towers).

Initially the term "inland marine" referred to transportation on the nation's inland waterways (rivers, lakes, seas and canals), but now inland marine insurance is mostly applied in reference to insurance for property transported by land. Most waterborne cargo now is ensured as ocean or wet marine, while cargo transported by land is known as inland marine and has its own standards of liability, policy forms and underwriting criteria. Inland marine policies are known as floaters because originally the insured property was floating.

The property covered on the equipment or inland marine floater might range from simple hand tools to very large cranes. Virtually any type of mobile equipment or tool can be insured: drag lines, crance, conveyors, power drills, concrete mixers, caterpillar tractors, or engines.

The equipment covered can be used in a wide variety of operations such as, home improvements to strip mining. It might be used to build roads, buildings, pipelines, or many other types
of structures. The coverage provided is for direct physical loss to the equipment.

Rental reimbursement coverage can be added by endorsement to cover the cost of renting substitute equipment if covered property is out of service by a covered cause of loss. Coverage can also be added for Hired and/or Borrowed equipment. With come carriers, separately scheduling this equipment generally provides broader coverage for perils such as flood and/or
earthquake.

BOILER AND MACHINERY COVERAGE

Today, boiler and machinery insurance is an integral part of most insurance programs. Boiler and machinery coverage fills in the gaps created from exclusions in a standard property insurance policy. B&M provides coverage for three causes of loss, including electric arching, mechanical breakdown and steam explosion. Business owners often do not realize that without B&M coverage, they are not buying an ‘all-risk’ policy.

Whether a small office or a large production plant, B&M coverage provides protection needed to mitigate significant costs and potential catastrophic revenue losses in the event of a sudden or accidental equipment breakdown.

Every business has B&M exposure. Most business owners think because they do not own any steam boilers or production machinery that they don’t need such coverage. In fact, any company with a heating and cooling system or even just simple electrical outlets needs B&M coverage. Equipment or electrical failure can occur in water heaters, cookers/kettles, presses, refrigerators, compressors, generators, transformers and even switchboards. As equipment and electrical lines age, accidents and failures will happen.

All businesses should have coverage either included with their property section or purchased as a stand-alone supplemental policy.

What causes boiler and machinery losses?

Losses occur from a variety of causes. Some common reasons for B&M failures include:

• Old or fatigued equipment and electrical panels
• Lack of proper maintenance
• Machinery/circuits used beyond capacity
• Lack of safety devices
• Operator error
• Dirty or dusty operating environment To help prevent such losses, business owners should routinely inspect equipment and provide continuous education to employees who operate or maintain machinery.

Why is boiler and machinery coverage important?

Boiler and machinery insurance covers sudden and accidental failure of equipment and any resulting damage, such as spoilage or loss of income due to unexpected temporary business shutdown. Some of the most significant costs associated with equipment failure are not so much the direct cost of the failed machine but rather the indirect costs, such as downtime, product spoilage or utility interruption.

For example, let’s say a power surge causes electric arching in a server room control panel housing a telecommunications system, and a company’s phone and computer systems go down. As a result, revenue is lost while the system is restored. With B&M coverage, the cost to repair the control panel and phone system and any loss of income suffered would likely be restored.
What should business owners be aware of when considering B&M coverage?

Business owners and agents should review their insurance policies closely to determine whether or not B&M coverage exists within their program. Insurance buyers should be advised about their coverage and feel confident they are making informed decisions. Business owners should remember to choose a policy that includes not only direct physical loss to property but also any loss of income or consequential loss, known as spoilage. There are very few businesses, if any, that do not have a B&M exposure.

Commercial Umbrella Liability

Umbrella liability insurance protects you when accidents happen and your existing liability insurance policies cannot cover all expenses. Standard business liability coverage will take care of you in most situations, but when serious situations arise, umbrella liability insurance will help ensure that your business is protected. While no one wants accidents to happen, they do - and people sue. Here are a few possibilities:

• Your company holiday party gets out of hand resulting in various injuries and damages

• Your building has a carbon monoxide leak that results in multiple injuries and/or deaths

• Your business fails to render the appropriate professional services

A business umbrella policy picks up where your business auto liability, general liability or other liability coverage stops. Umbrella insurance is an inexpensive way to provide extra coverage against bodily injury and/or property damage.

For example, if your current policy covers you for $1 million and you are successfully sued for $1.5 million, your business umbrella coverage can pay the outstanding $500,000—which is a lot less painful than having it come out of your business profits.

Crime Coverage

Also known as Business fidelity insurance is designed to protect your company from many types of crime. Because crime is a common worry for businesses, The policy will offer protection to cover your company when employees decide they are entitled to the company’s inventory or robs you of your cash. Working through such losses takes time and money – resources that would be much better spent running your business.

Business crime insurance coverage includes but isn’t limited to:

• Employee dishonesty

• Forgery or alteration

• Theft of money and securities

• Burglary or robbery

• Computer fraud

GARAGE LIABILITY INSURANCE

Also called motor trade insurance, garage insurance is liability insurance for garage owners and car dealerships. Garage insurance protects businesses from claims involving customer's automobiles while on business premises.

The term garage here refers to any automobile dealers, repair garages, service stations, storage garages, parking lots, valet services, and delivery and towing operations. It applies to liabilities involving "garage buildings, contents, stock and equipment, and automobile liability."

But there are also a number of limitations for garage insurance. Consider the following points from an article by LeRoy H. Utschig :

• Garage insurance will not cover liabilities unless directly related to the garage or vehicles themselves. Other services may not be protected.

• Businesses purchasing garage insurance need to decide if they want auto dealer's liability coverage over customers while driving garage-owned vehicles.

• Large dealerships should be sure that they select the appropriate coverage limit so that their insurance plan covers storage at new lots.

Business Income Coverage

Business Income is the net profit or loss that would have been earned or incurred if a loss had not occurred…plus any normal operating expenses that must continue during the downtime of the business.

Business Income insurance pays the actual loss of business income sustained by the insured because of a necessary suspension of the insured's operation during the period of restoration following a loss. The suspension must result from direct physical loss or damage to real or personal property. Coverage is provided against the same causes of loss covered under the insured's property policy.

•  Flood Insurance

•  A standard homeowner's policy does not include flood Insurance.

•  You cannot depend on disaster assistance from the government. Monies available are for those that the president declares a disaster. Less than 50% are declared a disaster, therefore most people are on their own. It is much cheaper to buy a policy than it is to re-pay the government for the assistance.

•  20-25% of claims come from the Lower risk areas- Flood Zones A or X.

What coverage's for flood are available for basements?

A basement is defined as the floor being below ground level on all four sides .

Coverage is provided for foundation elements including posts or other support systems. Coverage is also available for utility connections, mechanical equipment necessary for the building, such as furnace, hot water heater, clothes, washer and dryer, food freezer, air conditioner, electrical junction, etc. Items such as paneling, carpeting, furniture, etc. are not covered in a basement.

The individual policy should contain a complete list of elements and equipment covered. It's important to note that some items are included under building coverage and others are covered by content coverage. It is advisable to purchase both building and contents coverage for the broadest protection.

•  Health Insurance

Health is undeniably a needed product for everyone…and one that never seems to have any slowdown in increasing cost. No one wants to get sick as no one wants to get into trouble being unable to afford expensive medical treatment when required. Health is as costly as valuable at all times, and especially nowadays. Along with proper diet, exercise, peace of mind and preventive care, health insurance is a wise and necessary investment into your health.

Health insurance is an agreement between you and your insurance company (a government agency or a private organization), according to which the insurer pays medical benefits that are referred to covered services in case you, as an insured person, become sick or accidentally injured. Your health insurance policy lists medical services that are covered as well as services that are not covered and which you will have to pay for.

It is important to choose the most suitable health insurance plan. Private Health Plans are usually offered at work by your employers. Medicaid is a health care plan funded by government for families and individuals with low income. Medicare is another government funded health insurance plan offered for people aged over 65. Health insurance coverage pays for routine visits to your doctor, lab tests and other not very expensive stuff; however the major reason why you should be covered by health insurance is to get protection against enormous expenses of potential illness or injury.

Group Health Quote System

•  Dental Insurance

Dental insurance covers the costs of routine dental care along with accidental damage to your teeth. Dental insurance normally pays for general treatment such as dentures and crowns, root canal work, bridges, as well as emergency treatment.

Cosmetic work, implants and braces are usually excluded. Dental insurance means discounts on dentistry costs, selecting a dentist you trust, fast and easy approval process and other benefits that are so helpful and comforting when you are at the dentist's.

Group Dental Quote System

•  Life Insurance

No matter whether you belong to an optimistic or pessimistic lot, life tends to answer both expectations. One of our biggest worries in life is the well-being of our loved ones. Life insurance is a guarantee that if the day comes when you can no longer care for the people you love, they will still be supported financially and taken care of.

Life insurance is a contract between you (the insurance policy owner) and the insurer, according to which the policy owner is paid a reimbursement in case the insured event occurs (i.e. the policy owner's death). You, as the policy owner, agree to pay a fixed premium on a regular basis. Life insurance deals with such insured events as death and accidental death, excluding suicide, war and some other factors from the insurer's liability.

Whether you are single, married, a single parent, retired, a business owner with self-supporting children, retired, or fall under some other category, life insurance applies to all situations and should be seriously considered to fit into your long-term plans and budget.

:: Life Insurance Calculator ::

• Long Term Care Insurance (LTC)

A long term care insurance policy pays some or all costs of nursing home care for qualified individuals. Premiums are based on the age of the applicant and are projected to remain stable for the life of the policy. Premium payments stop when the insured meets the qualifications for long-term care, which include medical necessity, cognitive impairment, and inability to carry out certain activities of daily living. Group LTC policies are available.

• Disability Insurance

There are 2 types:

Short-term disability insurance: This policy extends to not more than two years with a waiting period of zero to fourteen days.

Long-term disability insurance: Based on the premium amount, this policy can extend from a few years to your entire life. However, it has a long waiting period which can last several months.

An individual disability insurance policy has two types of protection features. With a non-cancelable policy, one can renew insurance every year at the same premium and coverage benefits. The insurance company has no right to deny renewal or cancel insurance except for the nonpayment of premium. However, in a guaranteed renewable policy, the insurance company holds the right to increase your premium with increasing cost.

Making a claim for disability insurance benefits is not easy. It requires proper documentation regarding how disability occurred and how it prevents the employee from working.

Need to insure something you don't see on our web site? Please call us to discuss your needs!