Property and casualty insurance provides
coverage for losses due to the physical
damage or destruction of your business.
With the right policy, neither fire nor exploded boiler can put
you out of business. Everything from your office building to
your cabinets to your water cooler can be covered.
You can buy various types of insurance protection
separately, or you can purchase one package that covers
many potential hazards. Among the forms of
coverage you can purchase are:
- Building and equipment insurance: This
protects you if your facility or equipment
is damaged or destroyed
- Valuable papers insurance: This protects
you if the documentation supporting your
accounts receivable (or other valuable business
records) is lost or destroyed
- Business interruption insurance: This protects you by
replacing some or all of your operating cash flow if your
business is unable to maintain its normal operations for
a period of time (typically up to 12 months) due to a
covered event
What if you or a key employee dies or becomes disabled?
Unfortunately accidents happen not only on the job but
also at home, and illness can strike anyone. Though the
death or disability of an owner may be a minor issue for
large businesses, small businesses may find themselves in
a bind. And if you’re a sole proprietor, you’re personally
responsible for all of the debts of your business, so
everything you own could be repossessed if you’re unable
to pay your bills.
To survive a money crunch, your business can purchase
life insurance and disability insurance to cover you, with
the business named as the beneficiary. Upon a triggering
event (death or disability), the policy will pay your business
a certain amount of money, which it can use to cover its
normal operating expenses.
Your business can also purchase life insurance and
disability insurance on a key employee--someone who is key
to the success of your business (i.e., this employee brings
in substantial accounts or has specialized knowledge or talent). Again, on the triggering event, your business would
receive a sum of money to compensate for the lost income
generated by the event, or for the cost of replacing the
employee.
Note: These types of policies are different from workers’
compensation insurance, which nearly all states require
businesses to have. Workers’ compensation insurance
provides medical coverage and income replacement to your
employees if they’re injured at work or get sick from job-related
causes. Once an employee opts to receive benefits
under such a policy, he or she is usually prohibited from
suing your business for the same injuries.
Protect business assets from claims and lawsuits
With a general liability insurance policy, the
insurance company will pay (up to policy
limits) third parties who claim they were
injured or their property damaged by your
product or service. If a lawsuit is threatened
or filed, the insurance company will hire and
pay (again, up to policy limits) a lawyer to defend
you.
You can purchase general business liability insurance
separately or as part of a commercial package policy, which
combines this coverage with other types of coverages,
such as property and casualty insurance. Certain small
businesses, including retail outfits, can buy a business
owners policy, which includes a general liability insurance
line. If your business needs broader coverage or higher
liability limits than these policies offer, you can purchase
supplemental liability insurance with a commercial
umbrella policy.
An important point: If you provide professional services
(e.g., doctor, lawyer, accountant), a general liability policy
doesn’t cover you for losses incurred by third parties
arising from your professional acts. In this case, you may
need to buy professional liability insurance, which protects
you against liability for injury done to others due to
your misconduct or lack of skill; or errors and omissions
insurance, which protects you against liability for things
that you did improperly or failed to do.
You’re invested in your business, so it makes sense to
protect that investment with smart insurance coverage.
With our insurance services, we shop and compare rates,
and you pick the quote – online CNBank.InsuranceAisle.com
or by phone (844) 427-7338. Let us customize an insurance
plan based on your needs. That way you can rest easy,
knowing your business is protected.
Source: ©2016 Broadridge Investor Communication Solutions, Inc. This material provided by Margaret M. Whelehan.
CNB Insurance Agency is a wholly owned subsidiary of Canandaigua National Bank & Trust. Investments and insurance products offered through CNB Insurance Agency are not FDIC insured, not bank deposits, not obligations of, or guaranteed by Canandaigua National Bank & Trust or any of its affiliates. Insurance Companies offering products through CNB Insurance Agency are independent of and not affiliated with Canandaigua National Bank & Trust, any of its affiliates, or CNB Insurance Agency. Canandaigua National Bank & Trust will not condition an extension of credit on either the consumer’s purchase of an insurance product or annuity from Canandaigua National Bank & Trust or any of its affiliates, or the consumer’s agreement not to obtain, or a prohibition from obtaining, an insurance product or annuity from an unaffiliated entity.