Question 1

What insurance do I need to run my business?

Accepted Answer

The type of insurance you need depends on your business type, size, and industry. Generally, most businesses need general liability insurance, and if you have employees, workers' compensation is required by law in most states. We can help assess your specific needs.

Question 2

What's the difference between general liability and professional liability?

Accepted Answer

General liability covers bodily injury, property damage, and personal injury claims that occur on your premises or as a result of your operations. Professional liability (errors & omissions) covers claims related to professional mistakes, negligence, or failure to perform professional duties.

Question 3

Does my insurance cover subcontractors?

Accepted Answer

Generally, subcontractors should have their own insurance. However, you may need additional coverage or endorsements to protect yourself if a subcontractor's work causes damage. We can review your specific situation and recommend the appropriate coverage.

Question 4

Why do I need workers' compensation if I have just one or two employees?

Accepted Answer

Workers' compensation is required by law in most states, regardless of the number of employees. It protects both you and your employees by covering medical expenses and lost wages for work-related injuries, while also protecting your business from lawsuits.

Question 5

Am I covered if my employee uses their own car for business?

Accepted Answer

Typically, your commercial auto policy doesn't cover employees' personal vehicles. You may need hired and non-owned auto liability coverage to protect your business when employees use their own vehicles for work purposes.

Question 6

How much coverage do I really need?

Accepted Answer

Coverage amounts depend on your business size, industry, assets, and risk exposure. We'll conduct a thorough assessment of your business to recommend appropriate coverage limits that protect your assets without over-insuring.

Question 7

What's an umbrella policy and do I need one?

Accepted Answer

An umbrella policy provides additional liability coverage beyond your primary policies. It's valuable if you have significant assets or face higher liability risks. We can help determine if an umbrella policy makes sense for your situation.

Question 8

Why did my premium go up if I didn't file a claim?

Accepted Answer

Premiums can increase due to industry-wide trends, changes in your business operations, increased risk exposure, or general market conditions. We'll review your policy and help you understand any changes and explore options to manage costs.

Question 9

What happens if I don't have insurance and something happens?

Accepted Answer

Without insurance, you're personally liable for damages, legal fees, and settlements. This could result in losing business assets, personal assets, or even bankruptcy. Insurance protects your business and personal financial security.

Question 10

What's the difference between replacement cost and actual cash value?

Accepted Answer

Replacement cost coverage pays to replace damaged property with new items of similar kind and quality. Actual cash value (ACV) pays the replacement cost minus depreciation. Replacement cost provides better protection but typically costs more.

Frequently Asked Questions About Commercial Insurance

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