Business Owners Package

Business insurance policies can be structured to combine protection from all major property and liability risks in one package. Coverage is also available separately and you should consult a business insurance adviser to learn what is best for your business. One package available is the business owners policy (BOP). The packaged policies are developed for businesses that generally face the same type of risk. If you have a larger business, it might be best to purchase a commercial package policy or customize your policy to meet the special risks your business faces.

Business Owners Policies cover:

1. Property insurance for buildings and contents owned by the company — there are two different forms, standard and special, which provides more comprehensive coverage.
2. Business interruption insurance, which covers the loss of income resulting from a fire or other catastrophe that disrupts the operation of the business. It can also include the extra expense of operating out of a temporary location.
3. Liability protection, which covers your company’s legal responsibility for the harm it may cause to others. This harm is a result of things that you and your employees do or fail to do in your business operations that may cause bodily injury or property damage due to defective products, faulty installations and errors in services provided.

BOPs do NOT cover professional liability, auto insurance, worker’s compensation or health and disability insurance. You’ll need separate insurance policies to cover professional services, vehicles and your employees. (credit the Insurance Information Institute)

Commercial Insurance

For small businesses without specialized risks, a Business Owners Policy—or BOP—may offer the basic property and liability coverage that you need. But if your company is growing and complex—or you face specialized risks due to the nature of your business—you may want to consider purchasing a Commercial Package Policy, or CPP for short.

CCP – Customized Insurance Under One Policy

Like a BOP, a CPP enables you to bundle various types of coverage within a single policy. However, while a BOP has limitations—it is only available for certain types of smaller businesses and covers only a few types of risk—Commercial Package Policies are available for a wide range of businesses and can be better customized to the specific needs of your business. Most CPPs begin with:

• Property insurance – Covers damage or destruction of buildings, equipment, inventory and more.
• General liability insurance – Covers costs if someone is injured at your business or from using your product or service.

From there, you can add a range of coverages to your CPP, including:

• Business income insurance – Also known as business interruption insurance, replaces lost revenues and covers extra expenses if your business must shut down or relocate due to fire, wind damage or other covered losses.
• Business vehicle (or fleet) insurance – Covers vehicles owned and used by your business.
• Business crime insurance – Covers losses from burglary, computer fraud, employee dishonesty and other business crimes.
• Commercial umbrella liability – Increases and broadens liability coverage, filling in gaps left by other coverages.
• Electronic data processing coverage – Covers costs associated with the loss or damage of electronic data processing media or equipment.
• Equipment breakdown – Also known as boiler and machinery insurance, this covers losses from the malfunction of heating, electrical, air conditioning, telephone systems and other equipment.
• Employment practices liability – Covers costs tied to disputes with employees over termination, discrimination, sexual harassment and other employment issues.
• Inland marine – Covers the transport of goods over water and land, providing comprehensive protection for assets that are moveable or mobile in nature, while in transit, such as from a warehouse to a store or in storage.
• Pollution liability – Covers costs related to pollution, including clean-up and personal injury.

A range of other types of insurance covering professional liability, supply chain risk, terrorism, farming or ranching losses, and more can also be included in a CPP.

A CCP Does Not Cover

A CPP can provide your business with coverage against a broad range of risks. That said, it’s important to recognize that your CPP will not include:

• Directors and Officers (D&O) liability
• Health and disability
• Life insurance
• Workers compensation

These coverages must be purchased separately; discuss your additional insurance needs with your insurance professional.

Contact one of our professional business insurance advisors to learn more.

Commercial Auto

A Commercial Auto insurance policy is a separate policy required to cover vehicles owned, leased or hired by your business. The policy is structured to cover collision and liability amounts which arise from accidents when an authorized person or employee uses your company owned vehicle. Coverages and amounts are determined by the specific needs of your business situation. The key thing to remember is that your company owned vehicles are not covered by your personal auto insurance or a business owner policy. You are required to maintain a separate Commercial Auto Policy for coverage.

Contact one of our business insurance advisors to learn what coverage is right for your commercial vehicles.

Workers Compensation Insurance

What is Workers Compensation Insurance?

Employers are legally obligated to take reasonable care to assure that their workplaces are safe. Nevertheless, accidents happen. When they do, workers compensation insurance provides coverage.

Workers compensation insurance serves two purposes: It assures that injured workers get medical care and compensation for a portion of the income they lose while they are unable to return to work and it usually protects employers from lawsuits by workers injured while working.
Workers receive benefits regardless of who was at fault in the accident. If a worker is killed while working, workers comp (as it is often abbreviated) provides death benefits for the worker’s dependents.

Each State is Different

Workers compensation systems are established by statutes in each state. State laws and court decisions control the program in that state and no two states have the same laws and regulations. States determine such features as the amount of benefits to which an employee is entitled, what impairments and injuries are covered, how impairments are to be evaluated and how medical care is to be delivered. In addition, states dictate whether workers compensation insurance is provided by state-run agencies and by private insurance companies or by the state alone. States also establish how claims are to be handled, how disputes are resolved, and they may devise strategies, such as limits on chiropractic care, to control costs. If your business expands to another state, you may have to deal with very different rules in the new state. The discussion here covers the general features of workers compensation programs.

Many business owners have questions about Worker Compensation and our advisors can help you with the following questions and concerns:

• What injuries are covered under Workers Compensation Insurance?
• What treatments do injured workers receive?
• What are the benefits that injured workers receive?
• As a business owner am I required to buy Workers Compensation Insurance?
• How do I purchase Workers Compensation Insurance?
• What determines my premium?
• What makes up the parts of a Workers Compensation Insurance Policy?
• What are my obligations?
• Are my employees covered if they work in another state?
• What is an assigned risk pool or plan?
• What Is A Second Injury Fund?
• How can I reduce my Workers Compensation Premiums?
• Can an Employee Who Has an accident Sue Me?

Workers Compensation Insurance and laws can be complex. To learn more about your obligations and your states regulations and requirements of Workers Compensation contact a CRFS advisor.

Special Business Insurance Packages by Trade and Risk

At Chestnut Ridge Financial Services, we work with many carriers and we have created partnerships with carriers who specialize in providing protection to industries which are viewed as high risk insureds within the industry. These industries include but are not limited to:

• Contractors
• Roofing Contractors
• Landscape Contractors
• High Past Claims History
• Startup Venture
• Alarm Installations
• Tree trimming and Removal
• Farm Insurance
• Jewelry Retailers
• and more

Contact a professional CRFS business advisor to discuss your business situation.