Rethinking Insurance Coverage

Like most small businesses, you probably can’t have Insurance Coverage yourself (pay losses out of pocket). Because you can’t afford the risk of significant financial exposure. You need insurance. However, you may not have the type or amount of coverage necessary to protect you at this time. Most small business owners routinely renew policies year after year. Without thinking about how changes in their business affect their risk exposure and coverage needs. Here are some areas that need to be re-examined before auto-renewing. As well as other areas that may require new Insurance Coverage.

Car insurance

If you have a vehicle 100% used for business, such as a truck or van. You probably have a business policy. When renewing, just check the extent of coverage that is currently in the policy.

However, if you use your personal vehicle for business driving (excluding commuting that is personal) and have a personal policy, reconsider your coverage. Your vehicle’s personal insurance may not cover you if you are involved in an accident while driving for work. You may have to pay out-of-pocket for damages to your vehicle as well as injuries – both personal and property – to a third party.

If work driving is only occasional, your personal policy may be fine. However, if you use the vehicle primarily for business (driving to customers, to or between multiple sites; transporting tools and equipment; making deliveries; driving by “unregistered drivers” such as employees), get a business policy – even though it may cost more.

Health Insurance Coverage

Do you provide coverage for your employees? Do you have coverage for yourself and your family? Here are some points to keep in mind:

  • Watch for application deadlines for coverage in 2018. Open enrollment is currently open for individual coverage from November 1, 2017. Through December 15, 2017 (maybe later for some state plans). For those already enrolled in Medicare. The annual period to sign up to change coverage for 2018 runs from October 15, 2017, to December 7, 2017).
  • There is a new healthcare option for small employers (fewer than 50 full-time and part-time employees). Those who do not have a health plan, are called the Qualified Small Employer Health Insurance Reimbursement Arrangement (QSEHRA). This allows a small employer to reimburse employees for their individually obtained coverage up to a specified dollar limit. (in 2017, this was $4,950 for self-only coverage or $10,000 for family coverage, prorated for partial coverage). This way you can help employees pay for their coverage tax-free; your payments are not subject to payroll tax.Insurance Coverage

Workers Compensation

You probably know that businesses in every state are required to provide this coverage to employees (including family members). Although the rules and costs vary from state to state. (The NFIB offers a state-by-state* comparison of workers’ compensation laws.)

What you may not know and may want to consider is the option of coverage if you are self-employed. Sole proprietors, partners, and members of a limited liability company. Those who are not employees are generally not covered by workers’ compensation; state law may allow them to sign up. This may make sense if you run a store or other business where injuries are common.

Basic principles of a business owner

A business owner’s policy (BOP) provides coverage for your property (equipment, inventory) and liability coverage (for injuries to third parties). When your policy is renewed:

Determine the level of coverage you want now. For example, if you’ve added expensive machinery, you may want to increase your coverage. Buy. There are many conditions (such as deductibles and exclusions) in each policy that can affect the cost. Compare coverage under different policies to see if you’re (1) getting the coverage you expect. And (2) paying the best price for the coverage you need. Depending on the nature of your work, make sure the policy is tailored to your needs. For example, the Tradesmen and Service Providers Policy covers the unique risks of tradespeople performing their services to customers. Also, consider adding data breach coverage to any BOP. Which provides funds to notify and compensate customers and employees who are victimized when your company is hacked.

A BOP does not cover flood damage, so depending on your location, you may need separate flood insurance. This is available through the National Flood Insurance Program. Read moreCar Insurance Fuquay Varina NC All details

Other Insurance Coverage

The above types of insurance are not the only ones you may want or need. Some other examples:

Business interruption insurance. This will help pay your bills if a storm or other event shuts down your facility. Depending on the policy, it may also cover some lost profits. Errors and omissions coverage. This is usually for professionals (“malpractice coverage”) to provide protection against errors and negligence in the performance of services. Product liability insurance. If you are a manufacturer, wholesaler or distributor, you may want coverage in case your products cause injury to others. Costs

Deciding on insurance can be expensive. Maybe you want it, but can you afford it (or can you afford not to have it)? You can buy insurance online or through an insurance agent (a person who usually represents one company). Or an insurance broker (who represents multiple insurance companies. And can provide you with a formal review of your risk exposure and potential solutions). Whether you choose to work with a broker who is paid a percentage of the premiums so it costs you nothing depends on how much time you have for your own fieldwork and how knowledgeable you are about insurance. So, For example, ambulances are not part of the legislation.

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