Protect Your Investment. got justice? got insurance?

Transcription

1 Protect Your Investment got justice? got insurance?

2 INSURANCE IS CHEAP. BUY LOTS OF IT.

3 Insurance transfers risk of loss. Insurance companies are of three types: 1) Stock (such as Allstate), 2) Mutual (such as State Farm), or 3) Reciprocals (such as Lloyds). Most insurers of businesses are stock companies.

4 COMMERCIAL GENERAL LIABILITY INSURANCE Property Casualty Liability

5 CGL Property & Casualty Coverage Property and casualty insurance insures against loss or damage to the location of the business and its contents. It can also insure the property of others in your control when the loss occurs. Property insurance can be for a specific risk. The insured location can be owned, leased or rented. Carry sufficient limits to replace your property in the event of a total loss.

6 LIABILITY INSURANCE Liability insurance insures against liability legally imposed upon your business because of the negligence of the business or its employees. Put another way, it protects your business when the business is sued for negligence.

7 COMMERCIAL AUTO Your personal automobile policy does NOT cover vehicles used by your business. If your business uses vehicles or anything that is required to be titled by your state, then you need a commercial auto policy. Commercial auto coverage insures against property damage to vehicles and damage caused to others by those vehicles. Make sure your policy carries uninsured motorist coverage. Automobile coverage is excluded by your CGL policy.

8 WORKERS COMPENSATION You will need to insure your employees against on-the-job injuries. Every state is different. But, most states have put into place some form of workers' compensation system. Workers' compensation is a system where the employee is not allowed, by statute, to sue their employer for on-thejob injuries; but, in return, the employer must participate in a system that provides nearly automatic payment to the employee in case of injury for medical bills and damages. There are many options for workers' compensation coverage. Some states allow an employer to opt-out of the system if the employer is self insured, some run the system through private insurers while others use state agencies. This coverage is excluded in every CGL, commercial auto, and professional liability policy.

9 BUSINESS INTERRUPTION (Optional) Business interruption insurance insures against loss or damage to the cash flow and profit of a business caused by the business being unable to operate because of interruption. The easiest example is to think about a critical piece of machinery being struck by lightning. The repairs to the machine may be covered by other coverage such as property or casualty insurance. But, if you can not make widgets for three months, than there is no replacement of that income without this coverage. The same is true for a professional service business. This is excluded from all policies unless purchased as a rider or as a separate policy.

10 HEALTH INSURANCE To be competitive, most businesses need to offer their workers health insurance. This insurance offers a health coverage benefit to your employees (and you). Extremely costly and increasing every year. Good Luck!!!

11 LIFE & DISABILITY INSURANCE Life and disability insurance protects the business against the death or disability of key employees. For example, one partner carries a life insurance policy naming the partnership as a beneficiary. If that partner dies, and the business has planned properly, the proceeds of the policy can be used by the business to buy out the share of the decedent's partnership interest from the estate. Consider Key Man Coverage.

12 EMPLOYMENT PRACTICES LIABILITY INSURANCE The newest type of liability coverage insures a business against the actions of the employer. The increase in lawsuits filed for wrongful termination, sexual harassment, and/or discrimination has fueled the need for employment practices liability insurance (EPLI). This type of insurance protects you as the employer against such claims made by employees, former employees, or business associates. Such claims always excluded in CGL policies.

13 COMMERCIAL UMBRELLA INSURANCE Umbrella liability insurance protects you when accidents happen and your existing liability insurance policies cannot cover all expenses. Standard business liability coverage will take care of you in most situations, but when serious situations arise, umbrella liability insurance will help ensure that your business is protected. Here are a few possibilities: Your company holiday party gets out of hand resulting in various injuries and damages Your building has a carbon monoxide leak that results in multiple injuries and/or deaths Your business fails to render the appropriate professional services Also buy a personal umbrella policy. Very inexpensive because it is excess over other policies.

14 HAVE YOUR POLICIES REVIEWED TO INSURE PROPER COVERAGE At the Martindale Law Group, we will review (at no charge) your personal and business policies to determine if you are properly covered. Contact Rick at: Office Location 1511 E. Robinson Street Orlando, FL Phone (407) Toll Free (866) Fax (407)