| Think of business insurance as the copper
| |
| | liability policy, you should be aware
|
| solder that fuses a plumbing joint
| |
| | that there are two types of coverage,
|
| together; if the joint leaks, there can
| |
| | occurrence coverage and claims-made
|
| be major ramifications. The same holds
| |
| | coverage. Occurrence coverage is more
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| true with business insurance; if you
| |
| | expensive but covers you based on when
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| don't have the coverage that a backflow
| |
| | the loss happened, even if it was many
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| prevention contractor business really
| |
| | years ago. Claims-made coverage only
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| needs - you'll watch those profits flow
| |
| | covers you while the policy is in force
|
| right down the drain. You personally
| |
| | and the claim is made. With occurrence
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| cannot control or eliminate every
| |
| | coverage, as long as you always have some
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| potential risk that threatens your
| |
| | policy in force, you will not have gaps
|
| livelihood, but business insurance can
| |
| | in coverage. With a claims-made policy,
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| provide the added protection against
| |
| | it is possible to have gaps when you have
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| these risks ... if you carry the right
| |
| | not coverage in force.
|
| kinds.
| |
| | Commercial Auto Coverage
|
| Choosing the right policy with all of the
| |
| | If you use any vehicles in your business,
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| appropriate coverages can be a challenge
| |
| | you need commercial auto coverage.
|
| when you are a backflow contractor
| |
| | Personal auto policies generally exclude
|
| technician. Bob Smart, commercial lines
| |
| | coverage if the vehicle is used in
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| director of Compass Insurance in
| |
| | business; be sure to read your policy or
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| Highlands Ranch, Colorado, states:
| |
| | ask your agent. Otherwise, vehicles used
|
| "Everybody wants to lump each backflow
| |
| | in business need business auto coverage.
|
| contractor/tester/tech into the plumbing
| |
| | The good news is that commercial auto
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| category, when in fact they are not all
| |
| | coverage is usually very competitive and
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| plumbers; that was my point of contention
| |
| | can even be cheaper in some cases than
|
| with the insurance carriers. I explained
| |
| | personal auto coverage. As is the case
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| to Hartford [insurance carrier] that the
| |
| | with General Liability, you should
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| backflow techs test the backflow
| |
| | purchase at least $1 million in limits.
|
| apparatus - then they make a report on
| |
| | Worker's Compensation
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| the valve they tested or they repair or
| |
| | If you are a backflow contractor that
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| replace the valve. They are not going in
| |
| | employs other backflow techs in your
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| and tearing out water lines or sewer
| |
| | business, Worker's Compensation is
|
| lines.
| |
| | insurance you will want to carry. It is
|
| "What Hartford did…was to cover these
| |
| | surprising that this is often the most
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| backflow techs under an engineering class
| |
| | misunderstood business insurance coverage
|
| because it's obviously more about reports
| |
| | since it covers exactly what it says.
|
| and paperwork," he continues. "I had over
| |
| | This coverage reimburses workers who are
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| 30 backflow techs insured through
| |
| | injured on the job for lost wages,
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| Hartford under this engineering class and
| |
| | medical and rehabilitation costs. It is
|
| never had one claim." Hartford has since
| |
| | required by law in virtually every state.
|
| modified this particular class of
| |
| | Generally, there are two aspects of this
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| coverage with regards to backflow techs
| |
| | coverage: the first covers the lost wages
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| and currently does not cover backflow
| |
| | and medical costs of the injured
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| techs that work on fire lines, i.e.,
| |
| | employee; the second covers the
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| sprinkler systems, suppression systems;
| |
| | employer's liability should the injured
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| supplementary coverage is required or a
| |
| | employee or his family decide to sue. In
|
| different class should be selected.
| |
| | most states the worker's compensation
|
| Find an agent who understands your
| |
| | system is the sole remedy for an injured
|
| business.
| |
| | worker. As a small business owner you
|
| A key component in selecting insurance
| |
| | will likely have the option of excluding
|
| coverage for a backflow contractor
| |
| | yourself from worker's compensation
|
| technician/tester is to make sure that
| |
| | coverage in exchange for a reduction in
|
| your agent fully understands what it is
| |
| | your premium. Weigh this option carefully
|
| that you do and don't do in the course of
| |
| | in light of your personal medical
|
| your work day. "If one agent wants to
| |
| | insurance, which may have an exclusion
|
| place you in the plumber class - which
| |
| | for job-related injuries.
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| can cost upwards of five times the annual
| |
| | Business Interruption Insurance
|
| premium of let's say an engineer class -
| |
| | Additionally there is insurance business
|
| find an agent who is willing to listen
| |
| | owners may also want to purchase to
|
| and really understand your business, "
| |
| | protect their businesses from incurring
|
| says Smart. "If all you do is test
| |
| | the kinds of losses that can close their
|
| backflow apparatus, then you shouldn't be
| |
| | doors: Hurricane Katrina is just one
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| placed in a plumber class."
| |
| | example of an unforeseen natural disaster
|
| Regrettably, insuring your business is
| |
| | that could force you to suspend your
|
| not as simple as insuring your car.
| |
| | business operations; floods, tornadoes,
|
| Because this business is unique, you'll
| |
| | and wild fires are other examples. Or, on
|
| need to draft a package of insurance that
| |
| | a more commonplace level, your business
|
| meets your business needs and provides
| |
| | could be the victim of vandalism or
|
| the level of protection you're
| |
| | theft. Business Interruption insurance
|
| comfortable with.
| |
| | protects you from the loss of revenue
|
| Your first decision is to decide which
| |
| | incurred when you're forced to close
|
| types of insurance your business needs.
| |
| | down. It usually has an interesting
|
| Two types that all businesses need are
| |
| | deductible based on the number of days
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| property and liability insurance.
| |
| | you are out of business rather than a
|
| Property and Casualty Coverage
| |
| | dollar amount and will generally only
|
| Property insurance protects the assets
| |
| | kick in after your business has been down
|
| your business owns, including the
| |
| | X number of days. The premium for this
|
| building and equipment, from destruction
| |
| | coverage will be based on your business
|
| or damage. Even if you run your business
| |
| | income and reimbursement will be made
|
| out of your home, you'll need to protect
| |
| | according to your average of income.
|
| your business assets with separate
| |
| | Umbrella Insurance
|
| property insurance; your homeowner's
| |
| | Is it actually possible for you to buy an
|
| policy will not cover business equipment.
| |
| | insurance policy that can save you money
|
| There are two general types of property
| |
| | on other insurance policies? It is and an
|
| and casualty coverage: All Risk Coverage
| |
| | umbrella policy is a great example. An
|
| and Named Perils Coverage. As the names
| |
| | umbrella policy is a type of liability
|
| imply, "All Risk" will cover you for
| |
| | coverage that protects you if there is a
|
| almost any type of loss whereas "named
| |
| | judgment against you that is larger than
|
| peril" coverage will only cover you for
| |
| | your limits of coverage in your General
|
| specific named causes of loss, such as
| |
| | Liability or Commercial Auto policy. The
|
| fire. You need all perils coverage. Even
| |
| | good news is that since the umbrella
|
| with so called all peril coverage there
| |
| | policy is secondary, the premium can be
|
| will be exclusions. Make sure and review
| |
| | very inexpensive. What is even better, it
|
| the exclusions in the policy. If there
| |
| | may be possible for you to lower your
|
| are exclusions in the policy that are
| |
| | limits on your General Liability or auto
|
| important to you, you may want to try
| |
| | policy to something less than $1 million,
|
| another insurance company or purchase
| |
| | purchase a $2 to $3 million umbrella
|
| specific coverage for the excluded
| |
| | policy and save money overall.
|
| situations.
| |
| | Disability Insurance
|
| Property insurance is also written as
| |
| | Since you're a business owner, you should
|
| either replacement cost or actual cash
| |
| | also carry some kind of disability
|
| value. The first will cover the actual
| |
| | insurance. There are various kinds of
|
| cost necessary to replace the lost
| |
| | disability insurance available that are
|
| property (less the deductible). The
| |
| | tailored to the needs of business owners.
|
| actual cash value policy will only pay
| |
| | All of them involve paying premiums now
|
| you the depreciated value of the property
| |
| | to cover your lost income if you become
|
| -- almost never enough to replace what
| |
| | disabled or unable to carry on your
|
| you have lost. Unless the cost is
| |
| | business. If your business is dependent
|
| prohibitive, you should purchase
| |
| | upon the expertise or knowledge of
|
| replacement cost coverage. Even with
| |
| | particular people in your company, you
|
| replacement cost coverage you will need
| |
| | should also consider key person
|
| to make sure you have purchased a high
| |
| | insurance. This type of plan helps to
|
| enough limit. If your building and
| |
| | compensate a business for financial
|
| contents are worth $1.5 million and you
| |
| | losses due to the death or long term
|
| only have $1 million in insurance, a
| |
| | disability of a key person. The insurance
|
| total loss would still leave you $500
| |
| | provides additional funds to the business
|
| thousand in the hole.
| |
| | until the key person can be replaced, or
|
| To determine how much property insurance
| |
| | until he or she returns to work.
|
| you'll need, create an itemized list of
| |
| | Business Owner's Policy
|
| your business' assets and their
| |
| | Properly covering your business is a
|
| individual dollar values. Then decide
| |
| | complex task, involving multiple policies
|
| which assets you actually want to insure
| |
| | each of which has its own limits and
|
| and for what value, which will determine
| |
| | exclusions. Many small business owners
|
| the insurance premium. In some cases, you
| |
| | can satisfy many of these through a
|
| may decide against insuring a particular
| |
| | package policy known as a Business
|
| asset, because it just doesn't warrant
| |
| | Owner's Policy or BOP. Often the BOP
|
| the cost of the premium. In other cases,
| |
| | policy is priced very competitively and
|
| the premium may be well worth paying.
| |
| | allows some level of customization
|
| General Liability
| |
| | through purchasing of additional limits
|
| Liability insurance is the other kind of
| |
| | and coverages. It is only available for
|
| insurance no business should be without.
| |
| | businesses up to a certain size - ideal
|
| General liability is just that -- very
| |
| | for a small backflow contractor -- and
|
| general in nature and protects your
| |
| | varies from carrier to carrier. You
|
| business from liability arising from
| |
| | should ask your agent.
|
| negligence on your part that may cause
| |
| | Reading an insurance policy contract can
|
| injury to others, such as a customer or
| |
| | be a daunting task. Their structure can
|
| employee. It also protects your company
| |
| | be very confusing and they are loaded
|
| if someone is injured as a result of
| |
| | with special definitions. Despite this,
|
| using your service. When you consider
| |
| | it is critical that you understand your
|
| that the legal expenses, settlement or
| |
| | coverages; your agent can help. However,
|
| judgment expenses of a single lawsuit
| |
| | when all is said and done, just like
|
| could drive your business into
| |
| | everything else in your business, the
|
| bankruptcy, you'll see why this kind of
| |
| | final responsibility rests with you, the
|
| insurance is considered a "must-have".
| |
| | owner.
|
| Also check whether or not your general
| |
| | Being a successful business person means
|
| liability insurance policy also covers
| |
| | being able to anticipate events and plan
|
| product liability for the valves you may
| |
| | for the future. Business insurance is one
|
| be replacing. If not, you'll want to add
| |
| | way of ensuring that you're in control of
|
| this type of specific liability insurance
| |
| | your future rather than being controlled
|
| to your package. You should include
| |
| | by it. Unfortunately, there is no generic
|
| "Errors and Omissions" coverage which
| |
| | plan that will meet every small business
|
| protects you in the event you are sued as
| |
| | person's needs. You'll need to shop
|
| a result of a mistake in your work.
| |
| | around, just as you would for any
|
| What limits of General Liability should
| |
| | product, to get the business insurance
|
| you purchase? According to the Insurance
| |
| | that's most suited to you as a backflow
|
| Industry at-large, the absolute minimum
| |
| | contractor.
|
| in this day and age should be $1 million;
| |
| | Disclaimer
|
| most businesses should consider
| |
| | This article is intended to provide
|
| increasing this to $2 or $3 million. The
| |
| | general information on commercial
|
| good news is that insurance is not priced
| |
| | insurance for educational purposes only.
|
| on a straight line basis. Since smaller
| |
| | The material here is not intended to
|
| claims are much more likely than large
| |
| | provide specific recommendations for any
|
| ones, the first $1 million in coverage
| |
| | individual business or type of business.
|
| will cost the most; an additional $1 to
| |
| | Insurance is regulated in each state by
|
| $2 million will not cost double or triple
| |
| | that state's Department of Insurance.
|
| the amount.
| |
| | Only a licensed Insurance Agent or
|
| Different types of liability coverage
| |
| | Insurance Broker in your state is
|
| have developed over the years do address
| |
| | qualified to provide you with advice on
|
| specific business needs. When buying a
| |
| | your specific business insurance needs.
|
