FREQUENTLY ASKED QUESTIONS

1. IS INSURANCE COVERAGE DIFFERENT FOR DIFFERENT BUSINESSES? Because businesses vary, it is impossible to have a standard policy to cover all contingencies. Also some businesses, regardless of their size, do not fit the profile of a standard business owners policy.  For example, wholesalers and garages have special liability needs that are not met in the standard business owners policy. The William Palumbo Insurance Agency can advise you of the best policy to protect you and your business.

2. WHAT TYPES OF PROPERTY DO I NEED TO INSURE?
Your business may not possess all the following types of property, but you can use this list to make sure that your have considered all the property coverages that may be needed. 

• Building and other structures
• Furniture, equipment and supplies
• Inventory
• Records of account receivables
• Improvements and betterments
• Machinery
• Boilers
• Computers and media
• Valuable papers
• Signs, fences and other outdoor property not attached to a building
• Leased equipment

To establish the amount of insurance you need on each, we can help you review the types of property you own and their uses.

3. WHAT IF SOMEONE SUES MY BUSINESS?
No business can afford to be unprepared for a lawsuit. Liability insurance protects your business assets when the business is sued for something the business did or failed to do, that contributed to injury or property damage to someone else.  Liability coverage extends not only to paying damages but also to the attorneys' fees and other costs involved in defending against the lawsuit-whether valid or not.  Generally, commercial liability insurance, whether purchased in a separate policy or as part of a standard business owners policy, will cover bodily injury, property damage, personal injury or advertising injury. The medical expenses of a person, other than employees, injured at a business or as a direct result of the operations of the business are also covered.

4. WHAT ABOUT MY COMPANY OWNED VEHICLES?
Whether you have one vehicle or several, you will need a business automobile policy.  Such a 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 and the driver is at fault.

5. WILL I NEED TO PROTECT MY EMPLOYEES IN CASE THEY ARE INJURED ON THE JOB?
Yes, most states require that you carry some form of workers compensation insurance.  This protects the employee and also offers the business owner a degree of immunity from a lawsuit by an injured employee.  Coverage is provided for medical bills and a percentage of lost wages for the employee.

6. I WORK OUT OF MY HOME. WILL MY HOMEOWNERS
POLICY COVER MY BUSINESS?
Yes, but on a very limited basis. Loss of business property is usually reimbursed up to $2,500 in the house and up to $250 away from the premises.  It is also important to know that no business liability coverage is included in a standard homeowners policy.  We can help you determine what, if any, additional coverage you may need. 

7. CAN I DO ANYTHING TO LOWER MY INSURANCE PREMIUMS?
Remember that all insurance premiums are based on the risks involved.  Therefore, deliberate steps you take to lower your risks not only help safeguard your business but also may make you eligible for lower premiums. Consider these steps…

• Install a sprinkler system, smoke and fire alarms and other adequate security devices.
• Maintain adequate lighting throughout your premises.
• Keep electrical wiring, stairways, carpeting, flooring, and elevators in good repair.
• Keep only a small amount of cash in the register.
• Keep good records of inventory, accounts receivable, equipment purchases and the like.  Back up any important computer files and keep off site.
• Make sure your employees have good driving records.
• Make sure your employees know how to lift properly and use all necessary safety equipment, such as goggles and gloves.
• Consider raising your deductible where appropriate to lower your premiums. How high to raise the deductible depends on how much you can afford to pay out of pocket. 
• Make sure your agent is familiar with your business and the risks associated with it.  He or she should be able to advise you on risk management techniques and their benefits to you.

8. WHAT CAN I DO TO RETAIN EMPLOYEES?

You can offer your employees all types of Group Products and different types of Retirement Plans. This may also reduce your business tax commitment.

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