New York Commercial Insurance Basics
Insurers often combine a number of New York commercial insurance into a package that is sold as a single contract. The most common policy for small businesses is the Business owners Policy (BOP).
The BOP combines coverage for all major property and liability insurance risks as well as much additional coverage into one package policy suitable for most small businesses.
The BOP includes business income insurance, sometimes called business interruption insurance. This compensates a business owner for income lost following a disaster.
To cover specific risks associated with a business, a variety of additional coverages may be added to the basic BOP, i.e., if a business has an outdoor sign, the BOP doesn’t cover it unless coverage is specifically added for an additional premium.
Only small- to medium-sized businesses that meet certain criteria are eligible for a BOP. Factors insurers consider include the size of the premises, the required limits of liability, the type of business and the extent of offsite activity. Premiums for BOP policies are based on those factors plus business location, financial stability, building construction, security features and fire hazards.
Most small businesses need to purchase at least the following four types of insurance.
1. Property Insurance. Property insurance compensates a business if the property used in the business is lost or damaged as the result of various types of common perils, such as fire or theft. Depending on the type of policy, property insurance may include coverage for equipment breakdown, removal of debris after a fire or other destructive event, some types of water damage and other losses.
2. Liability Insurance. Liability insurance pays damages for which the business is found liable, up to the policy limits, as well as attorneys’ fees and other legal defense expenses. It also pays the medical bills of any people injured by, or on the premises of, the business.
3. Business Auto Insurance. A business auto policy provides coverage for autos owned by a business. The insurance pays any costs to third parties resulting from bodily injury or property damage for which the business is legally liable, up to the policy limits.
4. Workers Compensation Insurance. Workers comp insurance, as this coverage is generally called, pays for medical care and replaces a portion of lost wages for an employee who is injured in the course of employment, regardless of who was at fault for the injury. In case of death as a result of injuries sustained while working, the insurance provides compensation to the employee’s family.
It may seem a little scary but New York commercial insurance can only do the right thing and protect you.
