Business Insurance FAQs
Below is a list of our most commonly asked Business Insurance questions and answers. Should you need additional information not found here, please Contact Us.
Business income coverage is not necessary for every business. However, if you decide to not purchase this coverage, it’s important to understand what won’t be covered in the case of a loss.
Business income provides reimbursement for lost revenue after a covered insurance loss . For a company that does not have a physical address that is crucial to its business, such as a contractor, business income is probably not necessary. For store fronts or main street businesses, like a coffee shop, business income insurance is a must.
General liability handles bodily injury and/or property
damage sustained by a third party from something like a slip, trip or a fall. A
woman walks into your store and slips on a puddle, breaks her hip and sues your
business for the medical damage. That’s general liability.
Professional liability is protecting your business against bad advice or guidance. Any time you give professional opinion, advice or guidance you are opening yourself up to a professional liability claim.
Commercial general liability insurance is one of the most common insurance coverages purchased by businesses. It covers more than just slips, trips and falls, but is not a catchall coverage. There are many liability related accident and incidents that can happen in your business that are not covered under commercial general liability. For instance, general liability insurance will not protect against things you do on purpose and will not cover your building or property.
You need commercial auto insurance for any automobile, taxi, limo, bus or small truck that you use for business because a personal auto policy will not cover vehicles used for business. Your commercial vehicle coverage will protect you and your business from the costs of property damage, injury and liability claims you may incur in the use of your commercial vehicles.
For larger commercial vehicles such as tow trucks, cement trucks, construction vehicles, tractor trailers or semi-trucks, you will need a commercial truck insurance policy. Not only is your commercial vehicle policy critical for protecting your business financially, but it is required by law.
In New York state, you are required to purchase workers’ compensation (and short-term disability) starting the first day you have an employee working for you. Most often you can take a workers’ compensation policy out with the same insurance carrier that provides your business insurance or general liability insurance. There are select cases where only the New York State Insurance Fund will provide coverage.
Either way, if you do not have coverage starting the first day you have an employee, the state can fine you or put a “Stop-Work” order on your business.
New York state short-term disability insurance is a mandatory insurance coverage for all businesses with employees. Short-term disability is provided by the employer and covers any injury sustained by an employee. That injury can be sustained at work or at home.
Equipment breakdown is usually associated with a sudden event and is evidenced by damage such as arcing, seizing, fracturing, rupturing and bursting with the ceasing of operation. Wear and tear usually occurs over time and is evidenced by damage such as corrosion, erosion, rusting, leaking, squeaking and wearing with declining performance, capacity and/or functionality. In certain instances, wear and tear may result in an equipment breakdown, which is where the benefit of the proper insurance is realized.
As an employer, you have a fiduciary responsibility to act in the best interest of your employees as it pertains to their pensions, retirement accounts, and health and benefits. If you misappropriate or embezzle funds, let a policy cancel or don’t make employees aware of a policy cancellation, if you change benefits and don’t notify employees or any number of other acts that impact the benefits you have fiduciary responsibility for, you and/or your business can be held liable.
Fiduciary Liability Insurance provides defense and coverage in the event your business is found negligent in a fiduciary liability lawsuit.