Covering the Startup
JOHN DOETZER: There are probably as many insurance policies as they are different types of businesses. Some policies are very broad in nature. They referred to as Business Owners Policies. That would be typical for the small retail store and a shopping center. Other businesses have to buy all their insurance on an ala carte basis.
EDWARD HILLER: And you want to get a good an insurance agent, who will understand the nature of your business and what your risks are.
JOHN DOETZER: Specifically you need to look at Property Insurance, Liability Insurance, Workers Compensation Insurance, and Automobile Insurance right out of the shoots.
EDWARD HILLER: Most important is to have a Liability Insurance.
JOHN DOETZER: Every business needs to protect them selves from claims from other people for bodily injuring or property damage as a result of their operation.
EDWARD HILLER: In a commercial space, your landlord is more than likely going to require you to have your own insurance.
JOHN DOETZER: You need pursuance a General Liability Policy.
EDWARD HILLER: You are going to require the Liability Insurance. They are going to require that you care your own Personal Property Insurance because their policies is not covered what is inside the store.
JOHN DOETZER: A Landlord General Liability Policy will cover claims for bodily injury and property damage that occur in the common areas, the lobby, the elevator that sort of thing. Once the general public walks into your suite or through your office doors, if they trip over a power cord that is going to be clearly on your shoulders.
EDWARD HILLER: If you are operating out of your home. The home based business is not typically covered then a Homeowners Policy. You need to add some type of rider to your Homeowners Policy.
IRWIN KRAMER: And if you plan to ride your car for business, you are going to need a rider for that as well.
JOHN DOETZER: And generally it is about a 30% increase in premium in order to have that vehicle classified for business use.
IRWIN KRAMER: If your business owns a vehicle, you need a Business Auto Insurance Policy for it. Your personal auto insurance will not cover a car titled with the name of your business.
JOHN DOETZER: One of the most important coverage is to consider is Business Interruption Insurance, it is tied to the property policy and continues the income stream to the business during the restoration period. Most business fail to get back-end, because they fail to buy Business Interruption Insurance.