Law Firms

Law Firms

Attorneys, Independent Lawyers and Law Firms work in many different types of law. Some attorneys specialize in providing legal counsel to financial services companies. Other Lawyers specialize in disability cases. Still other law firms specialize in general practice. Each different type of law brings with it, the possibility to be liable for damages. With each unique type of risk there are specific insurance coverages that a business in the law profession may need. Here are 6 Coverages every all law firms should strongly consider.

Law Firms

Recommended Insurance Programs for Attorneys and Law Firms

Minimum recommended coverage:

  • General Liability
  • Professional Liability (Malpractice Insurance)
  • Property Insurance
  • Hired and Non-Owned Auto
  • Business Income with Extra Expense
  • Workers Compensation

Other coverages to consider for Law Firms:
Business Personal Property, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, Employee Benefits Liability, Umbrella Liability, Auto Liability, Building, Computer Fraud, Forgery, Employment Practices Liability (EPLI), Business Auto Liability and Physical Damage.

Insurance needs for Law Firms.

General Liability

General Liability Insurance is needed by all businesses. It is required by law in nearly all states for most businesses. This coverage will protect your business from the risks you face when the open public comes in to your facility. The risk of slips, trips, and falls is low because of the lack of a large volume of customer coming and going from the facility.

Professional Liability

Professional Liability risks are much higher in the Law Profession. Most Attorneys refer to this type of coverage as Malpractice Insurance. This type of coverage protects professionals who provide professional advice and services. This is at the heart of what lawyers do. If law firms offer advice to a client and the outcome is not desirable, the client has the ability to sue the lawyer for that advice. Even if the claims are unfounded, it can take an enormous amount of time, energy, and money for lawyers to defend themselves. This coverage can reimburse law firms for these costs up to the limits of the policy.

Property Insurance

Commercial Property Insurance is necessary if the law firm owns the property you operate your office. It is important to consult with your insurance agent about what exactly is and is not covered under your policy. The coverage will likely cover the building, structure and foundation; but if you have specialized equipment you may need additional coverage. If you live in an area where natural disasters are common (Floods, Hurricanes, Tornadoes, Etc.) you more than likely need this coverage or the damage resulting may not be covered.

Hired and Non-Owned Auto

If your business owns vehicles and you or your employees use those vehicles for business purposes than you need commercial auto coverage. More than likely, you do not own a business vehicle. Still you and your employees may periodically use your personal cars for business purposes. This is when a Hired and Non-Owned Auto Policy is necessary. Because the employee is in the car on business purposes than the liability to third parties is the liability of the business, not the individual. If your employee causes a wreck, the damages occurred as a result of that wreck are the liability of the business. This coverage will help in just these types of situations.

Business Income with Extra Expense

Business Income with Extra Expense Coverage will cover a law firm for loss of income suffered by a business when damage to its premises (by a covered cause of loss) causes a slowdown or suspension of its operations. Coverage applies to loss suffered during the time required to repair or replace the damaged property. The key part of this coverage is the covered loss portion of the policy. If your business is damaged because of a flood or an earthquake and you do not have this coverage, the business income and extra expense policy will not kick in. If the damage is because of a fire and it is covered by your commercial property policy, than the additional policy will kick in. For this reason it is wise to work with one insurance agent and make sure they are dealing with one or a few carrier to provide you optimal coverage. This will prevent gaps in coverage and speed up the time to process your claim.

Workers Compensation

Workers Compensation Coverage is required by law in most states for most attorneys. There are some exceptions in some states, so it might be worth your time to check with the proper governing agency in the state your law firm operates. Even if your business is eligible for an exemption it is more than likely beneficial for your law firm to still secure coverage. One expensive injury to an employee can result in a large cost to a business. In many scenarios the losses cause a business to close for good.

The risks associated with workers compensation are fairly low in this industry. Long term Repetition injuries like carpal tunnel may occur from employees sitting at a desk for long periods of time. Having adequate safety programs and offering desks that allow employees to stand may be beneficial to your business. This additional desk may be expensive, but an injured employee who is out of work for three months because of surgery can be significantly more expensive. Partnering with an experienced independent insurance agent can help you determine if you need this coverage.

 

Justice is found through the work done in Law Firms.

Attorney Liability Insurance Classification Codes

Commercial insurance companies use various liability classification systems in order to classify and rate coverage premiums for Lawyers. Here are the most common business insurance classifications for Attorneys:

Business Liability Category: Service Business

SIC Business Insurance Codes:

  • 8111: Legal Services
  • 9222: Legal Counsel and Prosecution

NAICS Liability Classifications:

  • 541110: Law Office or Legal Firm
  • 922130: Legal Counsel and Prosecution
  • 541120: Notary Office
  • 541199: All Other Legal Services

Business ISO General Liability:

  • 66122: Lawyers Offices

Common Workers Compensation Class Codes:

  • 8820: Attorneys—All Employees

Golf Courses

My Insurance Question - Golf Courses

5 Types of Insurance Coverage all Golf Courses Need

The industry surrounding Golf Courses is a diverse industry. Some of the businesses serve very high end customers and professional tournaments. Other courses serve people with middle-class incomes in a rural setting. Some of the businesses do not have a full course and only offer a driving range putting green. Most of the businesses offer some form of lessons, food and beverage as well as retail offerings. Depending upon which type of golf course you own or operate, the type of insurance coverage you need may vary dramatically. Here are five coverages most golf courses need.

  • General Liability
  • Liquor Liability
  • Commercial Property
  • Hired and Non-Owned Auto
  • Workers Compensation

Golf Courses

General Liability Insurance

General Liability Insurance risks can be substantial due to both the number of visitors and the nature of the activity. Golf is a physical endeavor and not everyone who partakes in the activity is of the highest athletic ability, nor are many in the best physical condition. The safety of the customers is a major concern. Slips, trips, and falls are always are a concern; as are flying golf balls. Golf carts can overturn and that may cause additional risks. If you have employees that are interacting with children, it is important to conduct proper background checks on those employees.

Liquor Liability

Liquor Liability Insurance is commonly referred to as dramshop liability. Most golf courses sell and serve some types of alcohol and in most states this requires them to purchase some form of liquor liability insurance. There are many types of risks associated with alcohol use at a golf course. Those risks include selling to an intoxicated customer, contributing to the over-intoxication of a customer and serving alcohol to a minor. These and many other risks associated to alcohol consumption make liquor liability a necessary coverage for golf courses.

Commercial Property Insurance

Commercial Property Insurance Exposure might be minimal if limited to a clubhouse facility or a maintenance shed, but not all golf courses are this simple. Many golf courses offer retail, food and beverage, restaurant facilities and instruction.  Many golf courses are located in remote areas. These locations add additional risks due to fires and how quick first responders can get to injured employees or customers.

Hired and Non-Owned Auto

If your business owns the vehicles employees are operating as part of their work, a commercial auto policy is necessary. Hired and Non-Owned Auto Liability Exposure is generally limited to employees using their own vehicle for running errands or when an employee is travelling for work and using a rented vehicle. If your employees partake in any of these actions your business needs Hired and Non-Owned Auto Insurance.

Workers Compensation Insurance

Workers Compensation Insurance Risks can be high for golf courses. If the golf course has employees who do its own grounds maintenance and chemical applications, it can cause the amount of injuries to rise. Other employees face normal slips, falls, strains, sprains and being hit by errant golf balls or equipment.

Golf Courses Insurance Needs

Painters

Painters or painting, staining and decorating contractors fill a great role within the construction industry. As the economy continues to recover the need for painters continues to grow. With the growth in this industry comes an increase in risk and a need for more insurance coverage. The risks in this industry are much different than if you run an auto repair shop or an HVAC company.

There are certain types of information you will need for a general liability and workers compensation quote. Here are 5 policies every painting contractor needs to secure in order to completely cover them and their employees.

Find the best info about insurance coverage for painters at My Insurance Question.

 

General Liability

General liability insurance is normally the first coverage any small business purchases. This is no different for a painting contractor. In most states this coverage is required by law to be in business. General Liability coverage will cover your liability to third parties for accidents that occur as a part of normal business operations. For painting contractors who work at remote locations, it is important to speak with your independent insurance agent about what exactly is and is not covered when you are operating on the premises of a third party. If you interact with a general contractor who has many contractors operating at one location it is important for you to make sure all of the other contractors have the proper insurance required for the work taking place.

Inland Marine Coverage

Inland marine coverage will cover any specialized equipment you or your employees use as part of your daily operations. This is an important coverage to secure, especially if you have expensive specialized equipment, because most basic policies will not cover this equipment when it is damaged. For instance if you have a van or a vehicle with a trailer carrying extra tools, when a wreck occurs your commercial insurance policy will cover your liability to the other person hurt in the accident and to fix your vehicle, but it will not pay to cover your specialized equipment. This is a coverage your agent can help you determine if you need it or not. Depending upon how much the equipment costs, you may be able to do without this coverage.

Commercial Property Insurance

Commercial property insurance is different from your personal home owners insurance policy. It is different primarily because it is sold one of two ways: Replacement cost or on an agreed upon value of the property. It may be tempting to go with an agreed upon value to save on premium, but this is almost always a mistake. This is because the agreed upon value is usually what the property is appraised at currently. This amount does not include the cost to tear down the dwelling and remove all the debris after a disaster occurs. This additional cost can be extensive.

Commercial Auto Insurance

Commercial auto insurance is also different from a personal auto policy. Commercial auto can be purchased for vehicles your business owns, but it can also be purchased for employees who drive their own vehicles or rented vehicles while on the job. This type of policy is called hired and non-owned auto coverage. Again, with this coverage it is important to take some additional time to speak with your agent about the daily operations of your business. If you are honest with them about what you do on a daily basis they can do their best to prevent occurrences from taking place where your business or your vehicles are not covered.

Workers’ Compensation

Workers compensation insurance is the second coverage a business purchases because like general liability insurance it is required by law in most states. Workers compensation is like general liability, but it applies only to your employees and not to third parties. If your employees are injured at work as a part of what would be deemed normal business operations, workers compensation coverage will pay them for some of their lost wages (typically 60%) and medical expenses. Depending upon the state in which you operate in and the accident occurs, there are time limits on how long the employee can collect workers compensation benefits. Having adequate safety programs and a strong return to work program will help your business from experiencing excessive damage to your experience modification rating.

 

Here at My Insurance Question you can find the best advice on the insurance policies all painters need.

Recommended Insurance Programs for Painters

Minimum recommended coverage:

•   General Liability

•   Inland Marine Coverage

•   Property Insurance

•   Commercial Auto Insurance

•   Workers’ Compensation

Other coverages to consider for Painters:
Business Personal Property, Employee Dishonesty, Contractors’ Equipment (Inland Marine), Umbrella Liability, Commercial Auto Liability, Goods in Transit, Environmental Impairment Liability, Stop Gap Liability and Employment Practices Liability Insurance (EPLI).

Rental Property Insurance

When you own rental property with it comes a certain amount of risk. There are ways to lessen the amount of risk your or your business faces by properly preparing your business and purchasing adequate insurance coverage.  Here are 3 types of insurance you or your business need to secure when you own rental property.

If you own Rental Property, you need to determine what kinds of insurance your business actually needs?

 

If you or your business own rental property, there are certain insurance coverages you need to secure. Find out the best info at My Insurance Question.com

Three Policies every rental property owner should have. 

General Liability Coverage

General Liability Insurance in most cases is the first type of insurance a business or investor purchases. General Liability and Workers’ Compensation Coverage are required by law in 48 out of 50 states. For this reason, most business owners start with these two coverages and later determine if they need additional insurance.  GL Insurance covers a property owner for any liability they might face to thirds parties.  Some liabilities you may face include when a tenant or visitor are injured due to the landlord’s negligence, when a property maintenance issue results in a tenants’ injury or personal property loss or when a tenant is injured as a result of the landlord’s failure to keep the premises safe and in good working order.  Now these are just a couple of the types of liability a property owner may face.  Other risks you or your business face include losses due to fire, storm, tenant or employee theft and even discrimination lawsuits filed by tenants or employees. A lawsuit does not have to be legitimate to cause you or your business to incur enormous legal costs. Having the proper insurance in place can limit the damages to you or your business if you do face a lawsuit.

Commercial Property Insurance

Commercial Property Insurance is frequently the second coverage a property owner will secure.  When looking to acquire a commercial insurance policy it is important to secure an accurate valuation of the property. A Commercial Property Insurance Policy are just a little bit different than a personal home owners policy in that they are sold on either a replacement cost or on an agreed upon value. For most businesses the replacement cost policy is almost always the best type of policy to secure. This type of policy will pay to not only rebuild the property but also to demolish and haul away any and all debris. This additional cost can be substantial.

Business Loss of Income

Business Loss of Income Coverage is the third and final type of insurance all rental property owners should purchase. A business loss of income insurance policy will cover you or your business for the income lost during the period when a rental property is uninhabitable.  For example, if your building is damaged by a hurricane; this coverage kicks in to cover missed rent payments you or your business would have collected while the property is being repaired. Frequently this coverage is paid based upon documented actual revenue, which is good for property owners because you have a lease stating how much revenue the property generates.  Depending upon the policy you can collect payments for lost rent for up to 12 months after a loss.

 

Business Interruption Insurance

Business Interruption Insurance is the key when disaster strikes your business.

Business Interruption Insurance is the key to protect your business when disaster strikes.

Having good commercial insurance is essential to the long term stability of your business.  It is a product that is necessary for you business, but a product you hope you never have to use. When there is a disaster that strikes your business, the quality of your coverage can mean the difference between a bump in the road and the end of your business.  One key policy to help your business whether the storm when a disaster strikes is business interruption insurance.

According to the Insurance Information Institute, “Business interruption insurance compensates you for lost income if your company has to vacate the premises due to disaster-related damage that is covered under your property insurance policy, such as a fire. Business interruption insurance covers the revenue you would have earned, based on your financial records, had the disaster not occurred. The policy also covers operating expenses, like electricity, that continue even though business activities have come to a temporary halt”.

This policy is normally offered as part of a Business Owners’ Package, but not always.  It is important to confirm with your agent if this is included in your package.  If it is not they will more than likely bring it to your attention as an add-on.  It is a policy to strongly consider for your business.  This business can help you pay necessary bills, retain key employees and may just be the difference between success and failure when a claim occurs.

In most states general liability and workers compensation insurance is required by law, but those are the bare minimum coverages any business should secure. Most businesses need several additional coverages to properly protect the organization.  If you own property or vehicles their is a need for commercial property and auto coverage.  If you own specialized equipment there may be a need for inland marine coverage.  The one frequently forgotten coverage is business interruption coverage.  Many small business owners fail to anticipate how they will pay their bills in the event a claim causes their business to be closed for a period of time.  When this occurs the bills keep coming and payroll has to be met.  If you are a cash strapped company, failing to secure this coverage may cause the ultimate failure of your business.

Difference between “actual cash value” and “replacement cost”

There are many ways your insurance company can go about calculating the amount you will get paid in the unfortunate circumstance that you have an insurance claim.  The two most common ways are referred to as ‘actual cash value’ and ‘replacement cost’.   The price you pay in premium is dramatically different between the two coverages and so is the amount the insurer will pay out when a claim does occur.

Actual Cash Value

Actual cash value refers to an insurance policy that covers your property and some possessions for and agreed upon fair market price at the time they are lost or stolen.  Since the items are damaged in the claim are used, “market value” means that depreciation will be factored in when your insurance company pays you for your claim.

Replacement Cost

Replacement cost refers to the amount it costs to replace what is destroyed.  This policy will pay out a substantially larger amount than an actual cash value policy. This is because a replacement cost policy will pay to tear down a piece of property, haul off the damaged material and repair or rebuild the property to its original state.  If the construction costs are higher now the policy will pay for the difference.

When a catastrophe happens, many business owners are happy they secured a replacement cost policy.  For some business owners, the difference between the two policies can be the difference between keeping the business open and being for to close the doors for good.  I strongly recommend you consider purchasing a replacement cost policy.  At the very least you should have an honest conversation with your insurance professional about what risks your business faces and how much risk you are comfortable taking on.

Now a replacement cost policy does come at a substantial cost.  The premium is substantially more for a replacement cost policy compared to an actual cash value policy.  For new businesses just getting on their feet, an actual cash value policy is the only option because of their financial situation.  This can also be the case for seasonal or cash strapped businesses.  If this is the case, do not just settle for a lesser policy.  Talk with your insurance professional about the difficulties you are facing to properly in sure your business.  Many times they can find find a different policy or a different payment method to benefit you unique needs.

 

HVAC Contractors

Heating and Air Conditioning Contractors ( HVAC Contractors ) are those business that provide services for and repair heating and air conditioning units.  They provide these services for both commercial and residential clients.  They have to be knowledgeable about both duct and vent work, the different types of fuel sources for heating equipment, which can be natural or LP gas, electric, steam, solid fuel, coal, or fuel oil.  Many contractors also install, service, and repair air conditioners. While air conditioning units are normally electric-powered, they are charged with different coolants, some of which may be hazardous.

All of these different types of work bring their own unique risks to the contractor. For this reason, it is very important for you to have an extended conversation with your insurance agent about all of the types of work you do and do not participate in.  It is equally important to inform your agent if there are certain types of work you do not partake in. There are more than one classification code for this industry and the types of risks you take on can dramatically impact what you pay in premium for a number of commercial insurance policies.  Below are 6 policies most HVAC Contractors need to secure in order to protect their business properly.

•   General Liability

•   Property Insurance

•   Hired and Non-Owned Auto (full commercial auto if vehicles owned)

•   Inland Marine

•   Business Income with Extra Expense

•   Workers’ Compensation

General Liability Insurance

General Liability Exposures at the contractor’s office or shop are generally limited due to lack of public access to the premises. Retail sales increase the possibility of customers slipping, falling, or tripping if customers visit office to view products.

Property Insurance

Property exposures at the heating contractor’s own location are generally limited to those of an office, shop, and storage of materials, equipment, and vehicles. Operations may also include retail sales. The fire exposure is generally light unless repair operations involving welding take place on premises. Welding involves the use of tanks of gases that must be stored and handled properly to avoid loss. The absence of basic controls such as chained storage in a cool area and the separation of welding from other operations may reflect a greater risk.

Commercial Auto

Automobile exposures are generally limited to transporting workers, equipment and supplies to and from job sites for HVAC Contractors. Hazards depend on the type and use of vehicles and radius of operation with the main hazards being upsets. Vehicles may have special modifications or built-in equipment such as lifts and hoists. Large heating systems may be awkward and require special handling and tie-down procedures. Age, training, experience, and drivers’ records, as well as the age, condition and maintenance of the vehicles are all important items to consider. If employees utilize their own personal vehicles for work related tasks then Hired and Non-Owned Coverage should be purchased.

Inland Marine Coverage

Inland marine exposures include contractors’ tools and equipment, including ladders and scaffolding, hoists, and portable welders, the transport of materials, and installation floater. Goods in transit consists of tools and equipment as well as products purchased by the customer for installation at the job site. HVAC units can be of high value and susceptible to damage in transit; they frequently require expertise in loading to prevent load shift or overturn.

Workers’ compensation

Workers compensation exposures vary based on the size and nature of the job. Both residential and commercial work involves lifting, work with hand tools, wiring, and piping. Cuts from the fabrication and installation of sheet metal for ducts and vents are common. Lifting injuries such as hernias, strains and sprains plus back injuries may occur. Electrical burns are common; electrocution can occur from the use of high-voltage lines. Any time work is done above ground, injury or death from falls and being struck by falling objects can occur. Slips and falls, foreign object in eyes, major and minor burns, and inhalation of fumes are all potential hazards.

Florist

I only own a small florist, how much insurance do I really need?

 

Here are 6 insurance coverages every floral business should have.  

How much and what types of insurance coverage a floral business needs really depends on the size, type and scope of your business.  If your business only sells flowers at one location than you may not need all of these coverages, but if your business designs flower arrangements or provides delivery service it opens up your business to an enormous amount of additional risk.  Here are 6 insurance coverage’s all floral businesses should strongly consider securing.

General Liability

General Liability Insurance will protect your business from property damage and bodily injury claims of third parties.  Third parties can be anyone not associated with your business that is harmed by the actions of your businesses operations.  Included in this group of people can be customers, vendors delivering products to your facility or even a plumber who comes to work on your toilet.

Professional Liability

If you are designing floral arrangements for special occasions like weddings, funerals, Valentines Day or Christmas you can be sued if the designs are not up to the expectations of the customer.  The lawsuits do not have to be founded to cost your business immensely in legal fees and reputation management.  This coverage will help your business withstand the costs to defend your self in court and for missed time at work spent defending you and your business.

Commercial Auto/Hired and Non-owned Auto

If your business uses vehicles as a part of normal business operations than you need to secure one or both of these coverages. If the business owns a vehicle and that is the only vehicle used for business purposes than a commercial auto policy should suffice your business, but if you have employees who use their own vehicle or rented vehciles for any part of their job than you need to secure the addition of hired and non-owned auto coverage.

Commercial Property 

A commercial property insurance policy is needed if your business owns and operates any property as a part of your operations, no matter the size. It is different than a traditional home owners policy.  Commercial property policies are sold on a replacement cost or on an actual value basis.  It is usually best to purchase a replacement cost policy.  This type of policy will cover the cost to tear down, haul off and replace the property that is damage.  An actual value policy will pay you an agreed upon value of what the property is worth.  In most cases this will not pay the entire amount to make your business whole again.

Inland Marine 

If you own any specialized equipment or equipment that is designed to be in transport frequently, you have a need for Inland Marine Coverage.  A commercial property will cover your facility.  A commercial auto policy will cover your vehicles.  If you have specialized equipment you use to design and maintain the arrangements or an attachment to your vehicle like a trailer it will not be covered by either of these policies. This is where an inland marine policy can be added to cover this specific equipment. Taking additional time with your agent to explain all the details of your business can make sure you secure all of the policies your business needs.

Workers Compensation

Workers Compensation Insurance is required by law for most businesses in 48 out of 50 states. The system is managed by the individual states, so it is important for you to check with the proper state governing agency to ensure you are compliant with your states laws and regulations. Even if there is an exclusion for your business to not carry the coverage, it is usually in your best interest to still secure workers comp coverage. This insurance policy will protect your business from being sued for most injuries that occur as a part of normal business operations. It also provides medical coverage and reimbursement of some lost wages for workers injured as a part of normal business operations.

Beauty Salons

How much insurance coverage do Beauty Salons need?

 

There are many Beauty Salons all across the country. Each one has their own unique set of risks depending upon the scope and scale of their operations. THe risks facing a beauty salon are very different from the risks of a real estate agency, a day care center or even an electrician.  All of these industries have their own individual needs and that is why each need their own package of insurance protection.  Here are four insurance coverages’ every Salon should have in order to properly protect their business. There may be more coverages that may be needed based on the actions of your employees. For this reason, it is extremely important to spend additional time speaking with your insurance agent about what exactly your employees do and do not do on a daily basis.

Beauty Salons

 

✓ General Liability
✓ Professional Liability
✓ Inland Marine
✓ Workers Compensation

 

 

General Liability

General Liability Coverage will protect most beauty salons from property damage and bodily injury claims to third party.  Because of the high amount of traffic coming in and out of the business there is a likelihood to have more than average claims due to slips trips and falls.  Keeping the premises clean and not cluttered can go a long way towards limiting these types of claims.

Professional Liability

Professional Liability Coverage is a coverage specifically designed for businesses that provide specialized advice or services.  The need for this coverage will be higher the more high end your business is or if you work with customers around special occasions like weddings, birthdays, religious celebrations, proms, etc.  This policy will cover most legal fees if your business is sued by a customer for not providing the proper service for their occasion.  The lawsuit does not have to result in a judgment against your business to rack up an enormous cost. Even if you are innocent, you still have to hire a lawyer to defend yourself in court and you may have to take time away from your business to defend your reputation.

Inland Marine

Inland Marine Insurance Coverage will protect your property that is highly specialized or frequently in transit.  Exposures to this equipment may come if employees provide their own tools.  If they do, there may be an employees, tools and equipment exposure. If your stylist goes to the client’s premises to perform services, there may be goods off premises or in transit. There may be a bailees exposure with wigs or other hairpieces, or from storage of customers’ goods at all-day events offered by some high-end salons.  If any or all of these exposures exist than your business needs to add this coverage.

Workers’ Compensation

Workers’ Compensation Insurance is required by law in 48 out of 50 states. Depending upon the rules and regulations of your state, you may or may not need to secure this coverage.  How your business is structured and whether or not your employees are W-2 or 1099 employees can impact the requirement for this coverage as well. Workers Comp Coverage will cover your business for most lawsuits that occur from injured workers who were hurt because of a normal business activity. It will provide your employee with medical costs and some lost wages while they are hurt and not able to work.

Electrical Contractors

Insurance needs and concerns for Electrical Contractors

Electrical contractors carry unique risks that many other businesses in the construction industry do not face.  With those risks come additional types of insurance needs.  Each electrician is unique in the scope and capacity in which they operate their business.  Depending upon the type of work each electrician partakes’ in, there may be a number of types of coverage an electrician needs to secure in order to properly secure their business.  Here is a list of 5 commonly carried coverages most electricians secure.

 

  • General Liability
  • Commercial Property
  • Commercial Auto
  • Inland Marine (Tools and Equipment)
  • Workers Compensation

General Liability

Exposures at the contractor’s office are generally limited because of the lack of access to the premises. Storing materials outdoors may create vandalism and attractive nuisance hazards.  Electrical voltage is always a risk for electricians.  This is due to the risk of electrical burns or electrocution to employees or other third parties.  An electricians’ employees can cause damage to the client’s property and can cause bodily injury to members of the household, the public, or employees of other contractors.  These are risks that are covered by a general liability policy.

Commercial Property

If you own a property; no matter how small, your business needs to secure commercial property coverage. Property exposures at the contractor’s premises typically are fairly low for electricians.  This is generally limited to those of an office and storage for supplies, tools, and vehicles.

Commercial Auto

Automobile liability exposure is higher for electrician than other brick and mortar businesses.  Most electrical contractors are in transit to transport workers, equipment and electrical supplies to and from job sites.  A driving hazard is a huge risk for insurance companies to insure.  The more time your business spends driving the higher the likelihood of claims.  Those claims tend to rise in both frequency and severity.  Implementing a safe driving program and keeping up to date driving records for all employees can help limit what you pay in premium.  Age, training, experience, and drivers’ records, as well as the age, condition, and maintenance of the vehicles, are all important items to consider.

Inland Marine

Inland marine is also commonly called ‘Floaters’ coverage.  It is meant for specialized equipment that is frequently in transit as a part of business operations. The exposures often include owned or rented equipment, building materials, as well as materials being transported to and from the job site.  This is commonly needed for businesses that transport their equipment to a third party site for use delivering a service.  The most basic example of an industry that needs this coverage is a landscaping company.  It can also include any business that takes equipment away from the premises for use as a part of normal business operations.

Workers’ Compensation

Workers compensation insurance is required by law in 48 out of 50 states.  Each state has their own specific exclusions depending upon the number of employees and the scope of your work.  It is important to check with the proper governing agency in your state to determine if you are required to purchase this coverage. Even if you are not required to purchase this coverage in many cases it is still beneficial to your business to secure it.  The coverage provides you with protection from lawsuits that may result from injured employees who are injured as a result of normal business practices.  Employees give up the ability to sue for normal injuries, but get back coverage for their medical expenses and some portion of their wages while they are hurt and not able to work.  Typically they are reimbursed 60 percent of their normal wages for the time they are not able to work.