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:
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)
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:
From there, you can add a range of coverages to your CPP, including:
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:
These coverages must be purchased separately; discuss your additional insurance needs with your insurance professional.
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.
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:
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.
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: