Tuesday, January 24, 2012

Business Insurance: "How much would it cost to insure my space-based taco-creating transmogrifyer?

You'll never believe some of the businesses I've been asked to insure...  But ultimately, they just want to know how much.  (Rugby players are long on stories, short on patience...)

Rarely do they ask questions about Products Liability, or Medical Payments... they just want to know the price.  (I've included some convenient definitions for General Liability insurance below...)

Premiums are, usually, based on risk and revenue/payrolls.  Obviously, a lumber yard with lots of business would be more expensive GL-wise than a small PR agency.  But, again, don't just assume that your rate will be cheap.  Get multiple quotes.  And, look for an association for the class of your business.  They may have a program for its membership that'll satisfy your needs.

Other things to be concerned about:

1.  Being a "named insured" on a subcontractor's policy. (If your sub doesn't have GL, don't use them.)
2.  Property Coverage (You'll want the Special form that includes theft.)
3.  Cyber Liability (Hackers...losing private client data...etc.)
4.  If you're a team or league or sport association:  Abuse Molestation Liability, and Certified Trainers Liability

This is one of the funner parts of insurance, so don't hesitate to call me:  800-605-5024

Here are those terms:

General Liability
This coverage protects your business from claims arising from alleged bodily injury, personal injury or property damage liability.  It includes protection for services you render or products you sell.  Coverage payments can include judgments, attorney fees, court costs, or other related expenses.
Personal and Advertising Injury Liability
This coverage is used to insure against claims of libel, slander, product disparagement, piracy, infringement of copyrights, etc. that arise out of the advertising of your goods, products, or services.
Medical Payments
This coverage reimburse, without regard to your liability, all reasonable medical expenses incurred by persons as a result of bodily injury sustained by accident as defined in your policy.
This coverage is used to insure against claims arising out of your ownership, maintenance or use of premises including any operations that are in progress.
Products/Completed Operations
This coverage is used to insure against claims arising out of bodily injury and property damage that result from products you have sold, manufactured, handled, distributed or disposed of; or for work you have performed, provided the accident occurs away from premises you own or rent.

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