Business owners need multiple policies to cover their company fully. These policies prevent major financial losses based on accidents, injuries, and other unforeseen occurrences. The following are frequently asked questions about insurance requirements for companies.
What Provisions are Needed for a Business Insurance Plan?
The business owner reviews the commercial property insurance to determine if they acquire the true value of the property if a total loss occurs. The true value of the property is based on what it would cost to rebuild the property and purchase replacements for equipment. On the other hand, the market value is not the exact value of the property. It is based on the expected value in which the property could sell in the current market. This value fluctuates and could present the owner with a financial loss.
When Do Companies Need Worker’s Compensation Insurance?
Companies are required by federal law to purchase worker’s compensation insurance after they hire two or more employees. This includes relatives of the owner as well. The insurance coverage offers immediate payment for medical expenses related to a work injury. If the worker cannot return to work immediately, they may qualify for monthly benefits. These benefits equate to around sixty percent of their wages.
When Does a Company Need Standard and Commercial Auto Coverage?
They need commercial auto coverage for all vehicles that are used for their services. The coverage pays for any damage or accidents associated with the business. However, if the company owner will use any of the vehicles on their personal time, they need standard auto insurance as well. This covers all possible liabilities associated with operating the vehicle.
Does Liability Coverage Prevent a Lawsuit?
No, global or general liability coverage doesn’t stop a lawsuit. The policies lessen the impact of these events and prevent a major loss. The owner can file a claim through their insurance provider after they sustain a loss.
Business owners evaluate possible insurance options for protecting their company from liabilities. These liabilities relate to workers, partners, and other vehicle owners. Company owners who need these policies or auto insurance contact their preferred insurance provider today.