Business Insurance Overview


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Business Insurance Overview

  1. 1. Business Insurance Overview     Daniel M. Brown
  2. 2. Specific Types of Insurance Policies     <ul><ul><li>General Liability </li></ul></ul><ul><ul><li>Property </li></ul></ul><ul><ul><li>Workers Compensation </li></ul></ul><ul><ul><li>Business Auto </li></ul></ul><ul><ul><li>Professional Liability </li></ul></ul>
  3. 3. General Liability Insurance     <ul><li>A companies G eneral Liability insurance should be designed to pay defense costs and lawsuit costs in the event of a claim. Covered claims include: </li></ul><ul><ul><li>Bodily injury. </li></ul></ul><ul><ul><li>Property damage. </li></ul></ul><ul><ul><li>Personal injury. </li></ul></ul><ul><ul><li>Advertising injury. </li></ul></ul><ul><li>  </li></ul><ul><li>Example: If a food manufacturer is sued because their product caused a consumer bodily injury, the manufacturers General Liability insurance should pay to defend that claim and pay the amount of the lawsuit up to the policy limit. </li></ul><ul><li>  </li></ul><ul><li>Typically, the policy limit can be up to $1,000,000 per claim (sometimes a larger sum is available). An umbrella policy should be considered to cover any claims above the General Liability policy limit. </li></ul>
  4. 4. Property Insurance     <ul><li>Property Insurance is designed to cover property that the company owns. Offices may have a number of computers. Manufacturers may have expensive machines. Contractors may have tools and equipment that are stored off-site and on-site. </li></ul><ul><li>  </li></ul><ul><li>Business owners must evaluate their exposure (their agent should help with this) and decide how much insurance is needed and what deductible is necessary. </li></ul><ul><ul><li>     A deductible is the amount the insured (business) pays before the insurance carrier will pay, much like your car insurance deductibles.  </li></ul></ul><ul><li>  </li></ul><ul><li>Some businesses may temporarily store the property of others (ex: dry cleaners, computer repair shop, auto repair garages) and a separate coverage is available. </li></ul>
  5. 5. Workers Compensation Insurance     Most states require W orkers Compensation insurance if there is anyone on the payroll. Fines may incur if workers compensation insurance is not placed.   Workers compensation pays employees for medical costs and lost time due to work related injuries/illnesses.   Rates are based on the type of work each employee is performing. Your agent can help you determine the amount of payroll that goes in to each &quot;rate class.&quot;  
  6. 6. Business Auto Insurance If a company owns vehicles, a B usiness/Commercial Auto policy should be in force.   Many companies have employees drive their own personal vehicles to run errands, make sales calls, and make service calls. Non-owned auto  coverage should be purchased if a company has this exposure.   Hired auto coverage should be purchased if anyone from the company rents vehicles as part of doing business.
  7. 7. Professional Liaiblity Insurance This coverage focuses on the failure to perform, financial loss and error or omission of the products or services sold. Additional coverage for breach of warranty, intellectual property, personal injury, security and cost of contract can be added.   On a General Liability policy, professional services are usually excluded. For the many business who have a professional exposure, this is an important coverage to speak to your agent about.    
  8. 8. ...In Closing <ul><li>Business Insurance should be designed to offer the businessowner peace of mind in the event of a claim. </li></ul><ul><li>  </li></ul><ul><li>As each business is unique in its operations and coverage should be tailored accordingly. </li></ul><ul><li>  </li></ul>
  9. 9. Contact Information <ul><li>Daniel Brown </li></ul><ul><li>Johnson, Kendall, and Johnson </li></ul><ul><li>109 Pheasant Run </li></ul><ul><li>Newtown, PA 18940 </li></ul><ul><li>Phone - 215-579-6465 </li></ul><ul><li>Email - </li></ul><ul><li>web - </li></ul><ul><li>  </li></ul>