Driving for Uber or another ride-sharing is an awesome way to earn extra money, but it also comes with some risks. On top of that, most standard auto insurance won’t fully cover you while on the job.
That’s why it’s crucial to understand the types of coverage you need, the average cost, and how to find the best policy to ensure that you and your passengers are protected.
Luckily, we’ve developed a simple guide exploring all of these key points. Let’s dive in!
Why Uber Drivers Need More Than Just Personal Auto Insurance
When you drive for Uber, basic personal auto insurance is not usually sufficient. Here’s why:
The Difference Between Personal Auto and Commercial Insurance
Personal auto insurance is intended for personal, not commercial, usage. When you drive for Uber, you are using your vehicle for commercial purposes, which alters your risk profile in the eyes of insurance companies. This means that many personal motor insurance policies will not cover incidents while driving for Uber.
Let’s take a look at some specific driving situations and which insurance coverage would apply during each:
Offline or Personal Use: If you are using your vehicle for personal purposes, and not online in the Uber app, you’ll have to rely on your personal vehicle insurance policy.
Waiting to Receive a Ride Request: Uber offers limited liability coverage during these times.
En Route to Pick Someone Up & During a Ride: Uber provides liability, collision and comprehensive coverage, but only if you have these coverages on your personal policy. Their coverages also usually include a deductible.
In short, while your own coverage will help in some ways, having a comprehensive commercial auto plan helps by filing the gaps in coverage, so you can avoid costly out-of-pocket expenses.
Types of Commercial Insurance You Need as an Uber Driver
As an Uber driver, you need several kinds of commercial insurance to ensure complete coverage. Here’s an overview of the coverage types you’ll want to invest in:
Rideshare Insurance: This is a hybrid coverage intended for Uber and other ridesharing drivers. It fills the gap between your personal auto insurance and Uber’s coverage, ensuring you’re protected during all driving phases
Liability coverage: This coverage type protects you if you are at fault in an accident that injures others or damages another person’s property. This coverage is crucial in order to avoid costly out-of-pocket expenses for legal or medical bills.
Collision Coverage: This policy type provides coverage for the cost of repairing or replacing your car in the event of an accident, regardless of responsibility. Since Uber’s collision coverage is only available if you have it on your personal policy, adding collision insurance to your business policy assures you’re covered in the event of an accident while driving for Uber.
Comprehensive Coverage: This type of insurance protects you from non-collision incidents such as theft, vandalism, and natural disasters. Given the time that Uber drivers spend on the road, this coverage is critical.
Underinsured/Uninsured Motorist Coverage: If you are hit by a driver who does not have appropriate insurance, underinsured/uninsured motorist policy will protect you.
Risks of Driving for Uber Without Commercial Insurance
Driving for Uber without sufficient commercial insurance might result in major financial and legal consequences. Here’s what you’re risking:
Risk of Claim Denial: If you are involved in an accident while waiting for a ride request, your personal motor insurance may deny your claim due to commercial use. Without commercial insurance, you may be solely responsible for repair costs and liabilities expenses.
Out-of-Pocket Expenses: Paying for medical bills, car repairs, or legal expenses out of pocket can be extremely costly. Commercial insurance protects you from such risks by ensuring you are covered in all circumstances.
How to find Commercial Auto Insurance for Uber Drivers
Finding the right commercial insurance for Uber requires careful consideration. Here are key factors to keep in mind:
Coverage Options: Look for policies that specifically cover rideshare driving and offer comprehensive, liability, and uninsured motorist protection.
Cost and Affordability: Balancing affordability with the right coverage is crucial. Getting quotes from multiple providers can help you find competitive rates.
Customer Support: Choose an insurer with excellent customer service to ensure you can easily manage claims or get assistance when needed.
EZ.Insure is the best option for Uber drivers looking for commercial insurance. EZ.Insure simplifies the process for rideshare drivers by providing quick quotes, low rates, and coverage options tailored to their needs.
Average Cost of Commercial Insurance for Uber Drivers
The cost of commercial insurance for Uber varies based on several factors:
Location: Urban regions typically have higher premiums due to increased accident risk.
Driving History: A clean record will help lower your insurance, however accidents or violations might raise it.
Vehicle Type: Larger vehicles or those with higher repair expenses may have higher premiums.
While premium costs vary quite a bit depending on the above factors, and the carrier you’re working with, Uber drivers typically pay between $100 and $300 per month for commercial auto coverage.
FAQs
Do I need commercial insurance coverage even if I only drive part-time for uber?
Yes, even part-time Uber drivers require commercial insurance. Part-time driving is still considered commercial use and is therefore not usually covered by personal vehicle insurance.
What is the difference between rideshare and commercial insurance?
Rideshare insurance is a type of commercial auto insurance intended exclusively for drivers employed by companies such as Uber. It fills in gaps that traditional business or personal insurance may not cover. Commercial insurance is an overarching term that refers to a variety of different policy types, all aimed at protecting businesses.
Can I drive without company insurance while not logged in to Uber?
Yes, when you are not actively working for Uber, your personal motor insurance usually covers you. However, getting rideshare or commercial insurance guarantees that you are fully covered while on the job.
Is this blog’s information applicable when driving for other ridesharing apps, such as Lyft?
Yes, the information in this guide is generally applicable to drivers for other ridesharing firms, including Lyft. Whether you drive for Uber, Lyft, or another service, the need for commercial insurance is similar. Both Uber and Lyft offer limited insurance coverage, but it may not entirely protect you in all instances.
Get the Peace of Mind You Deserve as an Uber Driver
Commercial insurance for Uber drivers is more than just an option; it’s necessary in order to protect yourself, your passengers, and your rideshare business.
Commercial insurance provides the peace of mind that every driver deserves by filling in the gaps between personal and Uber-provided insurance.
Don’t leave your safety to chance. Instead get insured today!
Ready to take the next steps? To ensure that you’re covered every mile of the way, get a quote from EZ.Insure! Simply enter your ZIP code into our data form, or call us directly at (855)-694-0047.
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There are many benefits that come with running your business from home. This includes convenience, flexibility as well as comfort. With all this being said, many home-based business owners don’t consider the risks associated with running an organization from their house. This poses the question — “Do I actually need insurance for my home-based business?”
While you may scoff at the question at first, thinking it’s unnecessary, the truth is that just like any other business, having the proper coverage provides essential protection safeguarding everything you’ve worked for. But don’t just take our word for it. Instead, to help you make an educated decision about your options, we’ll delve into five critical questions to ask yourself. When it’s all said and done, you’ll have a solid understanding of why home-based business insurance is so essential.
Question #1: Do You Have Expensive Inventory or Equipment?
One of the first things to think about is whether or not your home-based business involves inventory or expensive equipment. Your homeowners’ insurance probably doesn’t cover business-related objects in the case of damage, theft, or loss, even if you work from home.
Think about things such as your laptop, tools, technology or any other equipment that’s vital to your business operations. Then consider any inventory. Do you sell goods? If the answer is yes, these items could also be in danger without the proper protection. In the unfortunate case of a fire or break-in, you may have to replace these valuables out-of-pocket.
Why This Question is Important
Your operation relies on your inventory and/or equipment and without it your business is probably not functional.
Without home-based business insurance, replacing these items may be very expensive or unaffordable.
Homeowner policies alone usually don’t cover inventory or equipment losses.
Question #2: Do Clients or Customers Ever Visit Your Home?
Do you ever hold meetings at your house office with customers or clients? If so, you might be putting yourself in danger for responsibility if an incident occurs. For instance, you can be liable for a client’s medical costs if they trip and fall on your property, leading to an expensive lawsuit.
General liability insurance covers property damage and physical injury claims made by third parties. Even if your place of business is your house, this type of coverage it’s still necessary for any company that deals with clients or consumers face-to-face.
Why This Question is Important
Hosting clients without the proper home-based insurance leaves you liable in the case of an injury
General liability coverage will take care of the costs of lawsuits or claims relating to an accident, so you won’t have to pay out of pocket.
Having general liability coverage puts clients at ease and bolsters your reputation as a responsible business owner.
Question #3: Could a Lawsuit Affect Your Financial Stability?
If you own a small business and are on a strict budget, a lawsuit could be extremely detrimental to your business. Even a small claim could have a huge negative impact. In addition to an injury-related incident, clients may also file lawsuits if they think you’ve committed a professional error or if they feel you failed to provide a promised good or service.
Unfortunately, the legal and court costs stemming from these types of situations can add up quickly and jeopardize your finances. That’s why it’s so crucial to consider investing in professional liability coverage on top of the general liability protection that we discussed above.
Why This Question is Important
Small businesses suffer far more than large corporations in the result of lawsuits since they generally don’t have nearly as much funds or resources.
Without coverage, a lawsuit could be so expensive that you’re forced to sell your assets.
Question #4: Do You Rely on Your Home-Based Business for Income?
If your home-based business is your main source of revenue, you should think about how an unplanned disruption could affect it. What would happen if your home was damaged by a fire, a natural disaster, or some other unanticipated incident that prevented you from using it for several weeks or even months?
Business interruption insurance acts as a safety net paying for lost income during these unexpected down times. This coverage guarantees that, even while your business is recuperating you can continue to fulfill your financial and client obligations, pay your bills, and provide for your family.
Why This Question is Important
Without business interruption insurance, an unexpected event may force your business to shut down entirely, therefore bringing your income to a halt.
This coverage oftentimes provides relief in the form of a new, temporary space to operate out of.
While this question isn’t directly related to your home, many remotely-based entrepreneurs utilize vehicles in their day-to-day operations. Unfortunately, if you’re regularly using a car, truck or van for business purposes, your personal auto coverage probably won’t cover it.
Consider tasks such as delivery, client visits, or inventory transportation. If any of these are applicable to your company, and you aren’t properly covered, you’ll be financially liable for any accidents on the job. This is where commercial auto insurance comes in, protecting your business vehicle in the case of an accident during the work day.
Why This Question is Important
When using a vehicle for purposes related to your business, personal car insurance policies will not be enough.
If an accident occurs while you’re conducting business, you won’t have to pay out of pocket.
Without commercial auto insurance, you’ll be held liable for any vehicle damage, personal injuries or lawsuits stemming from the accident.
Final Thoughts on Home-Based Business Insurance
If you run a business from the comfort of your house, investing in home-based business insurance is crucial. Even if you still aren’t sure whether it’s necessary for your organization or not, just review the five questions listed above. If your answer to any of these questions is yes, home-based business insurance is likely a smart investment.
It’s important to get ahead of potential risks before they actually take place. If you decide not to, it could cost you an exorbitant amount of money, or even your entire business. So don’t wait for any surprises, instead, take time to review your coverage options, and find a plan that best fits your small businesses needs.
Visit EZ.Insure For Your Business Insurance Needs
We understand that shopping for business insurance isn’t fun and it can be confusing too. Luckily for you, there’s a platform that makes finding insurance quick and easy. We’re of course talking about EZ.Insure. At EZ we pride ourselves on the seamless, simple platform that we’ve built out. All you have to do is enter your ZIP code and in a few minutes you’ll be matched with a customized insurance quote for free! We also have side-by-side plan comparison tools so you can be sure to find the perfect coverage. To get started, fill out the form above or call us directly at 855-694-0047 to get started!
Commercial insurance, also known as business insurance, is essential to protect your company against a variety of risks. However, a question often arises— does commercial insurance cover vehicles? Understanding the various aspects of commercial auto coverage within a business insurance policy can help you avoid costly gaps in coverage. In this blog, we explore the relationship between commercial insurance and vehicles and why commercial auto insurance might be necessary for your company.
Understanding Commercial Insurance
Commercial insurance is a type of comprehensive policy used by business owners to protect organizations from various financial losses. Losses include things like property damage, theft, workplace injuries, liability claims, and much more. Oftentimes commercial insurance policies are bundled to include a variety of different coverage types. These comprehensive policies are often referred to as business owner’s policies (BOPs) and they typically include:
Property Insurance: Provides coverage for damage to equipment, buildings or any other assets owned by a business. Typical accidents covered include fires, theft and natural disasters.
Liability Insurance: Protects companies from any claim involving injuries or property damages caused by the businesses employees, products or operations.
Workers’ Compensation: Covers the medical costs and a portion of lost wages to employees who get injured or sick on the job.
Business Interruption Insurance: If a business is forced to close down temporarily, this coverage will provide compensation for lost income. Examples of reasons a business might need to close down are natural disasters, or fires.
There are also other more specialized types of commercial insurance that can be crucial depending on the industry you work in. These include professional liability insurance and cyber liability coverage. Additionally, companies that regularly use vehicles in their daily operations need specialized coverage too. This is where commercial auto insurance comes into play.
What is Commercial Auto Insurance?
Commercial auto insurance is designed to protect vehicles used for business purposes. Unlike personal automobile coverage, it covers a broader range of business-related risks.
For example, if you have a fleet of freight trucks, delivery trucks, use your personal vehicle for work purposes, or have staff driving company
cars, a commercial auto coverage will ensure that these vehicles are fully protected. There are also many cases where commercial auto insurance is actually required by law. This includes:
Company-owned vehicles being used for deliveries or client visits.
Any personal vehicles that are commonly used for business purposes.
Heavy-duty vehicles like semi-trucks or commercial trailers.
Vehicles that employees drive on behalf of a business.
Keep in mind that every state and industry has different rules and regulations, so we also recommend looking up your local laws to avoid legal issues.
When Does Commercial Insurance Cover Vehicles?
Although business insurance covers a variety of risks discussed above, vehicle coverage is usually excluded. There are some cases where a BOP or general liability policy may offer some coverage for vehicles occasionally used for business purposes, but this is not common. Even in these cases, the coverage is usually limited and won’t cover vehicles that are used on a regular basis by the business.
With all this being said, businesses using vehicles in their operations regularly need specialized commercial automotive protection. Otherwise, you run the risk of paying out of pocket in the case of an accident.
What Does Commercial Auto Insurance Cover?
A commercial auto insurance policy provides complete coverage for vehicles utilized for business purposes. Typical coverage includes:
Liability Coverage: This coverage protects against bodily harm or property damage if you are the driver at fault in an accident.
Physical Damage Coverage: This coverage includes both collision and comprehensive coverages for vehicle damage. Collision insurance covers damage to your vehicle from hitting another object or vehicle, regardless of who’s at fault. Comprehensive coverage protects your vehicle from events outside of your control including theft, vandalism, fire, an animal being hit and more.
Uninsured/Underinsured Motorist Coverage: This policy protects your company if an employee is involved in an accident with an uninsured or underinsured driver.
Employee Coverage: Provides protection for employees who drive company-owned automobiles.
Additional Coverage Options: To assure complete coverage, you can add services such as rental reimbursement and roadside assistance to your plan.
Do You Need Commercial Auto Insurance?
Deciding on whether or not your business needs commercial auto insurance depends solely on how vehicles are used within your daily operations. If the company uses vehicles for transportation, delivery, or regular travel, a commercial vehicle policy is essential. On the other hand, relying entirely on a personal auto policy for business purposes leads to big financial risks.
If you still aren’t sure about your business and it’s needs relating to auto coverage, ask yourself the following questions:
Do you or your staff drive for business purposes?
Is your personal vehicle routinely used for work-related purposes?
Are there any company-owned vehicles in your fleet?
If you answered yes to any of these questions, commercial auto insurance is likely a good investment.
Protecting Your Business: Steps to Take
To guarantee that your business is properly insured, take the following steps:
Examine your current insurance policy to detect any gaps in vehicle coverage.
Assess your company’s vehicle usage to decide whether a commercial auto policy is required.
Consult with an insurance agent to create a commercial auto insurance plan that is tailored to your specific business needs.
Final Thoughts
Commercial auto insurance is an important aspect of protecting your business, but typical business insurance policies tend to fall short. Whether you use personal cars for business or operate a fleet of commercial vehicles, you must have the proper insurance in place. Understanding the significance of commercial auto insurance can help you protect your organization from vehicle-related dangers and ensure your company is protected from all angles.
While researching and shopping for insurance policies can be daunting, it doesn’t have to be. Using EZ.Insure to compare quotes and coverage types makes the process easy. We offer side-by-side comparisons, so no matter how big or small your business is, they’ll be something for you. We also have a team of dedicated insurance professionals who are always on hand to walk you through the process. So take the next step in protecting your business and its assets today by visiting us at EZ.Insure. To get started, simply enter your ZIP code at the top of the screen or give us a call at 855-694-0047.
Embarking on a business venture is an exciting journey filled with possibilities and opportunities. However, it’s essential to be prepared for the unexpected challenges that may arise. One crucial aspect of this preparation is securing the right business insurance. Each industry faces unique risks. So, understanding the types of insurance coverage needed is key to safeguarding your business. As well as ensuring its long-term success. In this article, we’ll explore common business industries and the types of business insurance they may need. Shedding light on why these policies are essential.
Types Of Business Insurance
Before we go over what types of insurance different industries need. Let’s look at the different types of business insurance policies available.
General liability insurance is a fundamental type of business insurance. It provides coverage for a range of common risks and liabilities faced by businesses. Also known as commercial general liability (CGL) insurance. It is designed to protect businesses from financial losses associated with third-party claims of bodily injury, property damage, and personal injury. General liability typically covers:
Bodily Injury
Bodily injury coverage helps protect your business in the event that someone is injured on your premises or as a result of your business operations. This coverage can help pay for medical expenses, and legal fees. As well as any potential settlements or judgments if your business is found liable for the injury.
Property Damage
Property damage coverage provides protection if your business causes damage to someone else’s property. This could include damage to a client’s home or office space. Or damage to other physical assets belonging to third parties.
Personal and Advertising Injury
Personal and advertising injury coverage is designed to protect against non-physical injuries, such as libel, slander, or infringement of copyright. If your business is accused of damaging another party’s reputation through advertising or other communications, this coverage can help cover legal costs.
Legal Defense
General liability insurance typically covers the costs of legal defense, including attorney fees, court expenses, and settlements or judgments. This is crucial for businesses facing lawsuits, even if the claims are ultimately determined to be groundless.
Product and Completed Operations
If your business manufactures, sells, or distributes products, or if you provide services, products and completed operations coverage can protect against claims arising from defects in products or services that cause bodily injury or property damage.
Medical Payments
Medical payments coverage helps pay for medical expenses if someone is injured on your premises. Regardless of who is at fault. This coverage is usually more limited than bodily injury coverage, but can provide swift reimbursement for minor injuries without the need for a lawsuit.
Business Property Insurance
Business property insurance, also known as commercial property insurance, is a type of insurance coverage that protects a business’s physical assets. Including buildings, equipment, inventory, furniture, and other property, against various risks and perils. This insurance is crucial for businesses to recover from financial losses that may result from damage or loss of property due to covered events. The key coverage of business property insurance are:
Physical Assets – Business property insurance provides coverage for the physical assets owned or leased by a business. This includes the building itself, if applicable, as well as contents such as inventory, equipment, furniture, fixtures, and signage.
Covered Perils – Policies typically specify the perils or events that are covered. Common covered perils include fire, theft, vandalism, windstorms, hail, explosions, and certain types of water damage. It’s important for businesses to carefully review and understand the specific perils covered by their policy.
Business Interruption – Many business property insurance policies include business interruption coverage. This component helps businesses recover lost income. And cover ongoing expenses if the business is temporarily unable to operate due to a covered event, such as a fire or natural disaster. It can include coverage for rental income, payroll, and other fixed costs.
Replacement Cost – Business property insurance policies may offer coverage based on either replacement cost or actual cash value. Replacement cost coverage reimburses the cost to replace or repair damaged property without deducting for depreciation, providing a more comprehensive form of coverage. Actual cash value coverage considers depreciation, resulting in a lower reimbursement amount.
Cyber liability insurance is a type of insurance coverage designed to protect businesses from financial losses and liabilities associated with cyber-related risks and events. As businesses increasingly rely on technology and digital assets. The exposure to cyber threats such as data breaches, hacking, and other cybercrimes has become a significant concern. Cyber liability insurance helps businesses mitigate the financial impact of these risks by providing coverage for various expenses and liabilities.
Data Breach Response – Coverage for expenses related to responding to a data breach. This may include the costs of notifying affected individuals, providing credit monitoring services, and managing public relations efforts to minimize reputational damage.
Legal and Regulatory Expenses – Protection against legal costs and regulatory fines that may result from a data breach or other cyber incident. Cyber liability insurance can cover the expenses associated with legal defense, investigations, and compliance with data breach notification laws.
Data Restoration – Coverage for the costs of restoring or recreating lost or damaged data as a result of a cyber incident. This may include expenses related to data recovery and reconstruction efforts.
Business Interruption – Compensation for financial losses resulting from a cyber incident that disrupts business operations. This coverage can help replace lost income and cover ongoing expenses during the period when the business is unable to operate normally.
Cyber Extortion – Protection against costs associated with cyber extortion attempts, such as ransomware attacks. This coverage may include payments made to cybercriminals to restore access to data or systems. As well as expenses related to negotiating with extortionists.
Forensic Investigations – Reimbursement for the costs of investigating a cyber incident to determine the extent of the breach, identify the source of the attack, and implement measures to prevent future incidents.
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions (E&O) insurance, is a type of insurance coverage designed to protect professionals and businesses that provide professional services from claims of negligence, errors, or omissions in the course of their work. This insurance is particularly relevant for individuals and companies in service-based industries where clients rely on their expertise and advice.
Professional Negligence – Coverage for claims arising from alleged professional negligence, errors, or mistakes in the performance of professional services. This can include errors in judgment, faulty advice, or failure to meet the standard of care expected in the industry.
Legal Defense Costs – Reimbursement for legal expenses associated with defending against claims of professional negligence. This can include attorney fees, court costs, and settlements or judgments resulting from lawsuits.
Breach of Duty – Coverage for claims related to a breach of professional duty. This could involve a failure to perform services as promised, failure to meet contractual obligations, or other breaches of professional duty.
Defamation – Protection against claims of defamation, libel, or slander arising from the provision of professional services. This coverage can address legal costs and settlements associated with damage to a person’s reputation.
Copyright Infringement – Coverage for claims of copyright infringement related to the creation or dissemination of professional work. This is particularly important for professionals in creative industries where intellectual property is a significant concern.
Workers’ compensation insurance, commonly referred to as workers’ comp, is a type of insurance that provides financial and medical benefits to employees who suffer job-related injuries or illnesses. It is a crucial component of the social safety net and is designed to protect both employees and employers. It helps injured or ill employees by providing coverage for medical expenses, rehabilitation costs, and a portion of lost wages. At the same time, it protects employers from lawsuits related to workplace injuries.
Medical Benefits – Workers’ compensation insurance covers the costs associated with medical treatment and care for work-related injuries or illnesses. This includes doctor visits, hospital stays, surgeries, medications, rehabilitation, and other necessary medical services.
Income Replacement – If an employee is unable to work due to a work-related injury or illness, workers’ compensation provides partial wage replacement. Typically, a percentage of the employee’s pre-injury wages is paid to help cover living expenses during the period of disability.
Disability Benefits – Disability benefits are provided to employees who experience a temporary or permanent disability as a result of a work-related injury or illness. The level of disability benefits is determined by the severity and nature of the disability.
Death Benefits – In the unfortunate event of a fatal workplace injury or illness, workers’ compensation insurance provides death benefits to the surviving dependents of the deceased employee. This includes compensation for funeral expenses and financial support for the dependents.
Business Interruption Insurance
Business interruption insurance, also known as business income insurance, is a type of insurance coverage that provides financial protection to businesses in the event of a covered loss that disrupts their normal operations. This coverage is designed to help businesses recover from the financial impact of a temporary suspension of operations due to covered perils, allowing them to maintain financial stability during a challenging period.
Income Loss – Business interruption insurance covers the loss of income that a business may experience due to a covered event, such as a fire, natural disaster, or other insured peril. This coverage extends to the profits that would have been earned during the period of interruption.
Fixed Costs – In addition to income loss, the policy typically covers certain fixed costs that continue even when operations are temporarily halted. This can include rent or mortgage payments, utilities, and certain other ongoing expenses necessary for the business to resume normal operations.
Covered Perils – Business interruption insurance is triggered by specific perils or events that are covered by the policy. Common covered perils include fires, natural disasters, vandalism, and other events as outlined in the insurance contract. It’s important for businesses to understand the perils covered and, if needed, consider additional endorsements for specific risks.
Product Liability Insurance
Product liability insurance is a type of insurance coverage designed to protect businesses from financial losses and legal liabilities arising from claims related to defects or problems with products they manufacture, distribute, or sell. This insurance is crucial for businesses involved in the production and sale of goods, as it helps mitigate the financial impact of legal expenses, settlements, or judgments resulting from product-related claims.
Bodily Injury and Property Damage – Product liability insurance provides coverage for claims related to bodily injury or property damage caused by a defect in a product. If a product is found to be defective and causes harm to a consumer or their property, the insurance can help cover the associated medical expenses, repair costs, or legal fees.
Legal Defense – One of the primary benefits of product liability insurance is the coverage for legal defense costs. If a business faces a lawsuit related to a defective product, the insurance will typically cover the expenses associated with hiring attorneys, court fees, and other legal costs.
Manufacturing or Design Defects – Product liability insurance typically covers claims arising from both manufacturing defects and design defects. Manufacturing defects occur during the production process, while design defects are inherent flaws in the product’s design that make it unreasonably dangerous.
Employment Practices Liability Insurance (EPLI)
EPLI is a type of insurance coverage designed to protect businesses and employers from the financial consequences of employment-related lawsuits. These lawsuits can arise from various employment-related issues, such as wrongful termination, discrimination, harassment, retaliation, and other violations of employment laws. EPLI provides coverage for legal defense costs, settlements, and judgments associated with such claims.
Wrongful termination claims – Protection against claims of wrongful termination or dismissal, where an employee alleges that their termination violated employment contracts, implied contracts, or anti-discrimination laws.
Discrimination claims – Coverage for claims of discrimination based on factors such as age, gender, race, religion, disability, or other protected characteristics. EPLI helps businesses address allegations of discriminatory practices in hiring, promotions, and other employment decisions.
Harassment claims – Protection against claims of workplace harassment, including sexual harassment or other forms of harassment that create a hostile work environment. EPLI assists in covering the costs associated with investigations, legal defense, and potential settlements.
Third-party liability – Some EPLI policies may provide coverage for claims brought by non-employees, such as clients, customers, or vendors, alleging wrongful employment practices.
Commercial auto insurance is a type of insurance coverage designed to protect businesses and their vehicles used for business purposes. This insurance provides financial protection in the event of accidents, injuries, or property damage involving vehicles owned or operated by a business. Commercial auto insurance is crucial for companies that rely on vehicles for various business activities. Including transportation of goods, services, or employees.
Business Owned Vehicles – Commercial auto insurance covers vehicles owned or leased by a business and used for business purposes. This can include cars, trucks, vans, and other types of vehicles essential to the business’s operations.
Liability – Liability coverage is a fundamental component of commercial auto insurance. It provides protection against bodily injury and property damage that the business may be legally responsible for in the event of an accident. This coverage helps pay for medical expenses, repair costs, and legal expenses associated with third-party claims.
Collision – Collision coverage is designed to cover the cost of repairs to a business-owned vehicle in the event of a collision, regardless of who is at fault. This coverage helps businesses get their vehicles back on the road quickly after an accident.
Uninsurance/Underinsured Motorist – This coverage protects the business and its drivers in the event of an accident with a driver who either has no insurance or insufficient insurance to cover the damages. Uninsured/underinsured motorist coverage helps bridge the gap in such situations.
Industries
As we said, every industry is different. While most policies can help all of these industries there are certain policies that each industry needs more than the others.
Retail
The retail industry is a dynamic and ever-evolving sector that thrives on customer interactions, sales, and the management of diverse inventory. Amidst the excitement of running a retail business, it’s crucial for owners to prioritize risk management by investing in the right insurance policies. From protecting against potential liabilities to mitigating financial losses. A tailored insurance strategy can be the key to long-term success in the retail landscape. Retail companies typically need:
General liability insurance.
Commercial property insurance.
Workers compensation insurance.
Business interruption insurance.
Product liability insurance.
Cyber liability insurance.
Professional Offices
The professional office industry is a diverse and dynamic sector encompassing various professions. From legal and accounting services to consulting and creative endeavors. Amid the hustle and bustle of daily operations, it’s paramount for professionals in this industry to prioritize risk management by investing in the right insurance policies. From protecting against potential liabilities to mitigating financial losses, a well-tailored insurance strategy is crucial for ensuring the sustained success of professional offices. These types of companies need:
Professional liability insurance.
General liability insurance.
Cyber liability.
Business property insurance.
Workers’ compensation insurance.
Employment practices liability insurance (EPLI).
Construction
The construction industry is a powerhouse of growth and development, transforming blueprints into structures that shape communities. Amid the dynamism and innovation, construction businesses face a myriad of risks that can impact projects, finances, and reputations. To safeguard against unforeseen challenges, it’s crucial for construction companies to have a robust portfolio of business insurances. From protecting against accidents on the job site to addressing potential legal liabilities, the right insurance coverage is the cornerstone of a successful construction business.
General liability.
Commercial property.
Workers’ compensation.
Professional liability.
Commercial auto.
Food Service
The food service industry is a vibrant and dynamic sector, offering a myriad of culinary delights to consumers worldwide. While chefs and restaurateurs focus on creating exceptional dining experiences. It’s equally crucial for businesses in the food service industry to prioritize risk management through comprehensive business insurance. From protecting against liability claims to ensuring the safety of employees and patrons. The right insurance coverage is the key ingredient for sustained success in the food service realm.
General liability insurance.
Commercial property insurance.
Business interruption insurance.
Product liability insurance.
EPLI
Working With EZ
In every industry, the importance of business insurance cannot be overstated. These policies act as a safety net. Providing financial protection and peace of mind as you navigate the challenges of running a business. Whether you’re in retail, technology, construction, healthcare, or any other industry. Understanding your unique risks and securing the appropriate insurance coverage is a proactive step toward building a successful business. Consult with insurance professionals to tailor a policy that suits your specific needs. Ensuring that your business is well-prepared for whatever the future may hold.
No matter what type of business insurance you need, EZ can help. Our agents work with the top insurance companies nationwide to make sure you find the best insurance for your business. In fact, we can save you hundreds of dollars a year by working with your budget to find you the best coverage. If you have questions, feel free to give us a call at 877-670-3538 or enter your zipcode into the box below for free instant quotes.
Being the boss means you get perks like getting to do something you are passionate about on a daily basis. And make a living from it. What perk is better than loving going into work every day! But it also comes with a lot of responsibility. You’re responsible for your entire company. And there are plenty of risks in the business world no matter how small your business is. The best way to protect your company is with business insurance.
We can already see you rolling your eyes. There are so many stereotypes about business insurance it’s hard to know what to believe. We’re busting some of the most common myths to help you sort through all the misinformation. So you can start to look for the coverage that’s right for your business.
1.General Liability Covers Everything
As easy as it would be if this were true, it’s actually false. General liability coverage (GLC) is pretty comprehensive. But it still has limitations. Every business is different. And every business should have a policy built around its unique needs.
So, what does GLC cover? General liability covers things that fall into the following three categories:
Bodily injury and property damage – GLC will cover bodily injury or damage to property caused by you or your employees.
Medicalexpenses – Additionally, it will pay for any medical costs for anyone hurt on your property. And any injuries brought on by business operations offsite.
Personal and advertising injury -You will be covered for any libel or slander claims, as well as in case of a copyright infringement claim.
It’s very important to know what a general liability policy will cover. But it’s just as important to know what it won’t cover. Here are the more common exclusions, just to give you an idea of what your GLC may be missing:
Operation limitations – Policies for high-hazard businesses will have limitations. These limitations might deny coverage for some problems that arise from specific operations. Be sure to check your policy to make sure all of your business operations are covered.
Contractor and subcontractor exclusion – This means any work done by contractors you hire will not be covered. If your business is heavily based in construction, you will want to watch out for this.
Expected or intended injury – Any injury or property damage that is found to be intentional will not be covered by GLC.
First party damage – Any injury or property damage to yourself or your belongings would generally not be covered by GLC.
Product recalls – With this exclusion, any problems or costs that come with recalls to products you sell or use would not be covered.
While GLC covers the basics, the list of exclusions can go on and on. Every policy will have different exclusions. It’s best to check your policy to see what else your specific business might need.
2. My Home Insurance Covers My Home-Based Business
What if your workplace is in your home? Will your home insurance cover your business? Unfortunately, no. Even though your homeowner’s insurance covers your home and its contents, your business is separate. And your policy will not cover any losses associated with your business. But don’t worry, there are a few insurance options that can help:
Business property insurance – This covers damage to any equipment in your home that you use for your business. That includes computers, printers, furniture, appliances, etc.
There are plenty of commercial insurance options for a home-based business.
Liability insurance – If your business requires anyone coming into your home, this will cover any injuries or property damage.
Professional liability – This insurance is something most professionals need no matter where they work. It safeguards you from possible negligence or failure to meet standards.
Product liability – This coverage will protect you from any damage caused by products you make, sell, or supply to clients.
If your home is your storefront, you’ll need to protect it just like any other brick and mortar business.
3. I Don’t Need Commercial Auto Insurance
If you don’t own a company vehicle, you might think that you don’t need commercial vehicle insurance. That is not entirely true. Just like your homeowner’s insurance, your auto insurance will only cover your car for personal use. For example, getting to and from work. If you get into an accident while working your personal auto insurance will not cover you.
You might need commercial auto insurance if you transport products or visit clients and worksites. You might even need coverage if you send or receive packages at the post office. These policies usually include:
Coverage for medical bills – No-fault or personal injury protection will cover the medical expenses of anyone injured in a car accident regardless of fault.
Uninsured motorist coverage – If you are hit by someone who doesn’t have insurance, or are a victim of a hit-and-run, this will cover any damages from the accident.
Comprehensive and collision coverage – This will cover any theft, vandalism, flood damage, or damage from an object hitting your car.
Even though your company doesn’t own your personal vehicle it still needs commercial insurance. During off hours your personal auto insurance will have your back. But during business hours you need commercial insurance to fill in the gaps.
4. Business Insurance Is Too Expensive
It’s tempting to try and find ways to save money for your business, but if you cut the wrong costs you could end up losing the money you were trying to save and then some. If you don’t cover your business properly, you open yourself up to any number of financial risks. And business insurance isn’t as big of an expense as you might think. Especially considering the money it could save you.
Let’s look at the average costs of some of the types of coverage we’ve talked about:
General liability – Around $88 a month
Business property insurance – Around $65 a month
Professional liability – Around $97 a month
Product liability – Around $100 a month
Commercial auto insurance – Around $167 a month
While those amounts do add up, and prices can differ depending on the risk and the size of your business. It’s still probably less scary than what you imagined. Now imagine you get sued and you don’t have coverage? Legal services can cost between $100-$300 an hour depending on the case. That doesn’t include what you might have to pay if you don’t win.
The Takeaway
The you pay price to insure your business is much less than what you’d pay without it. Having the right business insurance will give you peace of mind. Your insurance company will handle the legal worries while you focus on your business. You protect every other part of your life with insurance, so your business – your livelihood – should be no different. If you need help deciding what insurance best fits your business we’re here to help! EZ.Insure will help you tailor your insurance to you, so come to us for your free quote today. To get started, simply enter your zip code in the bar above, or speak to an agent directly by calling 888-615-4893.
