Owning your own business in the Florida area is an outstanding accomplishment. It shows you had the stamina to take your vision from dream all the way to finish. You are feeling quite proud of yourself, as you should. It requires a lot of hard work, perseverance, and financial investment to get things up and going. Then, once they are up and going, it is essential for you to keep things moving in the right direction. Now that you have the doors open for business, it is no time to stop – no time to take a chance of losing what means so much to you. Business insurance is assurance; it is the single most important next investment you should make to protect your livelihood.
You have considered obtaining business insurance but are not exactly sure what is involved, how it works, or what is covered. Let’s take a closer look at the structure of business insurance and how it works. Business coverage protects three primary areas.
Property loss
Sometimes unfortunate events happen, such as fires. The monetary loss due to fires in 2011 was $11.7 billion. The number of fires that same year was 1,389,500. Even small fires cause damage. Having property loss coverage safeguards your business from ultimate loss. In the event of a fire, depending on the size of the damage, you can rebuild or repair.
Another area of property loss that is not pleasant to think about, but a reality, nonetheless, is that of theft. Theft can occur in many ways. It can take the form of burglary, robbery, embezzlement, or shoplifting. In the case of a burglary, damage to the property is likely to occur, in addition to money or goods being stolen. No matter how it happens, theft results in a loss of money if you are not covered by insurance.
Finally, if your property should experience a loss due to damage from inclement weather, vehicle damage, acts of nature, or other accidents, this will be covered under the property loss portion of the insurance.
To summarize, property loss occurs in three main categories: fires, theft, and damage. You may be wondering just what will be covered with property loss insurance. The most important items for your business are your inventory, equipment, and fixtures; these items are replaced or fixed. It is relevant to note here that when constructing your business policy, there are two main types of insurance you can choose from — Named Peril or All Risks. A Named Peril policy means you are covered if the “named” situation occurs (fire, theft, etc.); the All Risks policy indicates you are protected for all of the risk factors listed EXCEPT the ones specified.
Interruption
Every day your doors are closed, it is a day without pay. When your business is interrupted, it is a huge crisis – this is where business insurance, again, steps in to help until you get back on your feet. What is covered? With the interruption policy you will get coverage for lost revenue, payroll, and expenses of the business. Additionally, you can buy added insurance for any of the following scenarios:
- You need to relocate temporarily while your business is in the rebuilding phase.
- Your business relies on a supplier, but due to problems at their end, you cannot gain access to their store or warehouse.
- There is damage to the neighboring area of your business and therefore, you cannot gain entrance to your business.
So, even if unforeseen circumstances interrupt business as usual, you won’t have to lose out over it. Also, keep in mind your agent can tailor your insurance to fit the needs of your business.
Liability
Over 100 million lawsuits are filed in the U.S. courts every year. From slip and fall accidents to contract disputes, businesses stand to lose a lot from lawsuits. Even if you are not in the wrong, the whole ordeal is costly. Liability insurance is necessary for businesses; the amount and type you choose depends on your line of work and can be customized to suit your business. There are four types of liability insurances for businesses.
- Product liability covers your customers in the event they get hurt on your property; for example, slipping and falling on the sidewalk.
- Professional liability covers you if you or an employee is sued due to negligence or malpractice. Doctors and dentists are often targeted with these types of lawsuits.
- Employment practices liability covers lawsuits filed over situations like discrimination, harassment, wrongful termination, and so on.
- Workman’s compensation is coverage for the employees if they get injured while on the job. For many states, workman’s compensation is required insurance.
Finally
Statistics reveal that 25 percent of businesses never do recoup from a disaster. It takes so much to get a business going, both financially and mentally, that a setback can be devastating to the business and the owner. Without business insurance, this kind of setback shuts down the doors for good. It does not have to be that way. If an emergency occurs, be prepared to keep going by having a good business policy in place.
Oyer, Macoviak and Associates, established in 1953, have a reputation for expertise in Florida insurance, which can be quite complex. Their personable, friendly, and professional approach is evident through these many testimonials. If you have made that leap to business ownership and now need peace of mind to ensure you are protected from loss, damage, or theft, contact us today to discuss your options.
Robert Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953. Oyer, Macoviak and Associates are vested members of the community who are committed to doing business face-to-face and being your insurance advocate in times of need.
