What is Business Insurance?

If you only take away one thing from this post, let it be that you should make sure your coverage is the right fit for you and your business before disaster strikes.

The purpose of business insurance is to minimize the financial risk that comes with running a business. Whether you’re running a company on your own or building a seven-figure or more empire with hundreds of employees, your business carries certain risks.

When it comes to commercial insurance, there are six key, main categories:

  1. General Liability Insurance – this will protect your business for anything it’s legally obligated to pay for due it’s business operations
  2. Product Liability Insurance – this would help with a financial loss due to a defect in product
  3. Professional Liability Insurance – negligence, malpractice or errors when providing your service would be covered by this
  4. Commercial Property Insurance – inventory. equipment, tools, machinery or buildings owned by your company would need this
  5. Workers Comp Insurance – provides wage replacement and medical benefits to employees injured in the course of employment
  6. Commercial Auto Insurance – Vehicle insurance providing liability, uninsured motorists bodily injury, medical payments, comp and collision coverage, rental benefit, hired and non-owned auto liability and physical damage and more….all designed to protect your business

If you run a business, it’s safe to say that you will need business insurance. This may seem like just another cost, but you might find it’s not as much of a dig in your budget as you might expect. If you are a client of Stromsoe Insurance Agency, you’ve already made one huge step towards savings! The beauty of using an independent insurance agency, is that we do the shopping around for you.

Here are some of the claim scenarios businesses have been sued over from our industry claim journals:

  • At Oktoberfest, an intoxicated person did the chicken dance on a table. He fell off, broke his arm, and sued the city! He won an undisclosed amount. Now you know where to get your next “accidental” injury!
  • Convenience stores are a target. During a drive-by shooting, a person pumping gas was shot and sued the store.
  • People fighting in a parking lot get injured and sued the store. Talk about misplaced anger.
  • One winter, there was an icy parking lot. A man slipped, fell, and injured himself. He then sued the store for not clearing the ice, despite winter weather warnings nationwide. Convenience stores don’t have it easy!
  • In a correctional facility, a day visitor and an inmate were getting cozy on a picnic table. The table broke, injuries were sustained, and the prison was sued.
  • A consumer bought frozen raspberries and laid them on her kitchen counter to thaw. The package leaked and her countertop got stained. She then sued the food packaging company and ended up with all-new kitchen counters!

Bottom line: Make sure to partner with your local, independent insurance agents who cares about you to make sure you understand how to insure your business so you leave nothing to chance —  raspberry stains and all.

Questions? Want to learn more?

Here’s 4 easy ways to reach us:

Phone: 877.994.6787
Email: insure@siaonline.com
Text: 951-482-8144
Web: www.siaonline.com

PS Here’s a few words from one business owner that trusts Stromsoe Insurance Agency:

“AMAZING Staff, Service and Protection! I wouldn’t trust my business insurance to anyone else! Thank you for always looking out for me!”
Dione Moser – Co-Working Connection and Impact Marketing – Murrieta, CA – Client Since 2013

PPS Every policy is backed by our iron clad, 100% complete satisfaction guarantee. Ask for your copy today!

Insuring Your Home-Based Business

As the commonality of home-based business continue to rise, it is becoming increasingly more important to make sure that your business is adequately protected. Many business professionals that run their business from their home are misinformed and assume their assets will be covered under their existing homeowners’ insurance policy or business insurance policy that applies in the office. However, depending on your line of work, you may need additional coverage in order to receive full protection.

If you answer yes to any of the following questions, you may need to purchase additional coverage:

  • Does your standard homeowners’ insurance policy have a limit in coverage of business equipment?
  • Do you work from home on a regularly basis as opposed to your office at work?
  • Do you ever conduct business in contacts’ homes or allow contacts or employees to visit your home?
  • Is any of your business data stored at home?

Typical Home-Based Business Insurance Policies Include:

  • Rider to a Homeowners/Renters Insurance Policy – This is the least expensive option because it only provides limited additional coverage. If your business is run by a one-man operation system with limited liability exposure, this may be the perfect choice for you.
  • In-Home Business Policy – This will offer you coverage for business liability protection, and replacement of lost income from fire, theft, or any other disaster. This will act as a single policy, eliminating any gaps or duplications in coverage.
  • Business Owner’s Policy (BOP) – This will over you the most comprehensive coverage, protecting you from unexpected business interruption, damage to data or business equipment, and protection from malpractice or professional liability claims.

Stromsoe Insurance Agency is available for all of your California business insurance needs. Contact us today and allow us to provide you with the peace of mind knowing your assets are adequately protected.

Running A Home-Based Business – Do You Need A Small Business Policy?

Like most new home-based business owners, you might believe that your Homeowners or Renters insurance coverage offers sufficient protection. That is unfortunate, because in most instances these policies offer little to no coverage for business-related losses.  Homeowners policies are not designed to cover business losses. Most offer a small amount of business property coverage, meant to cover incidental items, such as a computer used for office work.

Take a look at the following list. If one or more of the items below apply, you might want to consider a Business policy for your business:

  • 1. Business Property, Stock or Equipment greater than $10,000 in value. A Business policy will allow you to insure your office contents, equipment, and stock. A Homeowners policy will likely have little, if any, coverage for business-related items.

 

  • 2. Clients visit your office/use your product/depend on your service. Liability insurance can help cover your exposure to lawsuits resulting from slip and falls, product liability claims, personal injury claims, etc. Perhaps even more importantly, it will provide defense costs for such actions. Homeowners policies do not have coverage for business liability. In a few instances, you might be able to purchase an endorsement to allow coverage for slip and falls due to customer visits, depending on your type of business.

 

  • 3. Damage to your office/workspace would require you to relocate/find a temporary substitute. Extra Expense coverage in a Business policy will provide funds for a temporary office/workspace or cost of a mobile trailer near your damaged office site.

 

  • 4. An Error or Omission could result in a lawsuit that would need to be defended/could seriously damage your business. Errors and Omissions coverage will protect you from judgments and defense costs resulting from past mistakes.

 

  • 5. Damage to your workplace could cause you to lose business, perhaps even lose some customers permanently. Business Interruption coverage will help pay for expenses until your property is repaired or sales return to normal (depending on the policy form).

 

  • 6. Your employees use their vehicles to make deliveries or run errands for your business. Non-Owned Automobile Liability will protect your business in the event that your employee has a serious accident during the course of running an errand for your business.

 

Contact our office today for more information about your home-based business insurance needs!  Here are 4 easy ways to reach us:

1. Phone  877-994-6787  
2.  Fax  951-677-6265  
3.  Email – insure@siaonline.com  
4.  Visit www.SIAonline.com