Frequently Asked Questions About
Commercial General Liability Insurance
How much does commercial insurance cost?
Costs can vary widely based on industry and are also determined by zip code and often payroll and/or gross sales. Request a free quote to get an exact number.
What kind of business insurance do I need?
Most business owners need General Liability Insurance at the very least. If you have any non-owner employees, you will need workers compensation insurance too.
What is a Certificate of Insurance?
A Certificate of Insurance is proof of coverage. It lists the type and amount of liability coverage you have and other policy information when a third party requests it.
Is business insurance tax deductible?
Yes. you can deduct the cost of commercial insurance premiums. The IRS considers insurance a cost of doing business as long it benefits the business & serves a business purpose.
Business Liability Insurance NY
Business Liability Insurance NY. The Small Business Administration identifies three types of business liability insurance for the average small business. These include general business liability insurance, product liability insurance and professional liability insurance. Each of these have their own purpose and, depending on your business type, may or may not be of benefit to you. Of greatest benefit to almost all businesses is a general business liability insurance NY policy. This policy acts as the first line of defense against many liability claims against your business.
General business liability insurance NY comes into play if a claim is made against your business by a third party. This could be for an incident such as property damage or bodily injury as a result of an action of an employee or contractor. The general business liability insurance usually covers legal fees in defense of the company and has a maximum settlement or court award value that the insurance will cover. Though not required by New York law, most New York businesses choose to protect themselves from financial loss and maintain a general business liability insurance policy. A typical policy may include bodily injury and property damage, personal injury liability and legal defense and judgement.
Business liablity insurance NY protects your company from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.
Currently, the Pacific Research Institute ranks New York among the worst states when considering the legal climate for business liability. A state constitutional ban exists barring the legislature from setting certain limits in business liability lawsuits, leaving businesses open to financial ruin. It is advisable for all New York businesses to strongly consider commercial general liability insurance. It is your first line of defense against frivolous and legitimate claims and lawsuits.
Bodily Injury and Property Damage
The bodily injury and property damage liability portion of the general business liability insurance NY policy generally covers physical injury to a person other than an employee at your place of business.
It also covers physical injury caused by you or your employee in the course of business on another person's property. Medical payments for such injury are often part of the settlement. Also the coverage includes damage caused by you or an employee to another person or entity's property.
Libel, Slander and Copyright Infringement
The general business liability insurance NY policy also includes coverage for libel, slander and copyright infringement by employees acting on behalf of the business. It also covers the invasion of property or privacy and wrongful eviction and losses caused by your advertising. These instances involve damage that is alleged to be caused by you or an employee against an individual or another.
Legal Defense and Judgements
Lastly, the typical business liability insurance NY coverage provides protection for legal defense and judgement which generally includes costs of defense against lawsuits and judgement limited to coverage liabilities. This part of the policy can be invaluable when settling lawsuits. Legal representation to handle the matter provides a sense of security in dealing with these matters.
Why You Need Business Liability Insurance NY
The business liability insurance NY can help protect businesses by covering legal claims. Policies can be tailored to meet the specific needs of the business by adjusting coverage amounts, deductibles and varying the dollar limits of the coverage. By adjusting deductibles and coverage amounts you will find a policy to meet your needs while staying within your budget.
Each claim can result in a devastating financial cost to a small business. Customer slip and fall claims have the highest rate of occurrence in business liability. Some estimates have the average payout for these types of claims at well over $30,000. These happen more often than you can imagine. The injured party generally has to show that the business was negligent, but sometimes that is not the case. An employee mops the floor and forgets to put the "wet floor" sign up and a customer slips and gets injured. Another example is a customer tripping over a sidewalk crack outside the business.
One such slip and fall accident in New York resulted in a $250,000 pre-trial settlement to the claimant for an injury in small grocery store. The individual walked down the aisle of the store and slipped on some spilled liquid laundry detergent. This resulted in a significant injury to the claimant, requiring medical attention and loss of work.
Ranked next is a customer injury and damage claim which often costs the business in excess of $40,000. Very similar to slip and fall, the customer has been injured through an act either through an action or through negligence. Recently in New York, a female was awarded $300,000 after she was injured during a robbery. It was determined that the business was negligent in the provision of security in a high crime area and that they were liable for the customer's injuries.
Reputational harm claims are also among the most frequent business liability insurance claims in New York with an average settlement of $50,000. In this internet age, reputational harm cases are on the rise. The unauthorized use of a picture that can negatively impact a person or business reputation is an example of this. A negative, hostile online reaction by an employee to a review or blog could be another example. In cases where a lawsuit is filed, the average can run up to $100,000 with legal fees and court costs. In New York, jury awards can be even higher due to the legal atmosphere. Though most defamation cases have historically centered on the media, claims against employers have been made with significant awards made to former employees. Former employees proving that employers make false statements that negatively impact their earning potential are among these cases.
Choosing the Best Policy for Small Business Needs
Insurance rates can be highly competitive and vary by area, coverage type, deductibles, limits and other variables. This is true for general business liability insurance NY. In addition to providing you the best coverage, a commercial insurance professional work with you to understand your business needs and develop a plan to manage your unique risks.
New York Economic Data And Commercial Insurance Requirements
The State of New York is famed for industry, particularly Manhattan and the surrounding areas. As such, it's no wonder why so many entrepreneurs look to do business in this state.
If you are thinking about starting up a business in NY, it's important for you to have an understanding of the status of the state, regarding its economy. It's also important to know about the insurance requirements for business owners in the Empire state.
Below, we offer a brief overview of New York's economic status, as well as the types of insurance policies business owners are legally required to carry, and policies that they should consider investing in.
The Economic Status Of New York State
While the economy is growing in the State of New York, it is lagging behind other states, in terms of growth. Overall, more jobs have been added in this state in recent years. In 2018, it is expected that this trend in job growth will continue; however, it will likely be at a slower pace than previous years.
If you are thinking about doing business in the Empire State, one of the best industries to consider is finance. It is predicted that this sector will contribute largely to the economy in 2018, as well as in the coming years. Healthcare services and education are also expected to see growth, as are the transportation industry, and professional and business services.
Insurance Requirements For Business Owners In NY
The New York State Department of Financial Services regulates insurance in the Empire State. Organizations that employ a staff of part-time or full-time workers that are either hourly or salaried are required to carry workers' compensation insurance. This type of insurance is required, no matter what size your staff is; even if it only consists of one W2 salaried person. You must also carry NY commercial auto insurance if you are using a vehicle to conduct any business affairs.
While there are no mandates surrounding commercial liability insurance, business owners in New York would be wise to invest in this type of coverage. Should a client or a contractor sue you for an accident or injury that happens at your place of work, or if a client claims you damaged his or her property, commercial liability insurance will protect you from having to pay the cost of legal fees and any settlements that may be awarded out of your own pocket.
Additional Resources For Small Business Insurance
Protect your company and employees with the right commercial insurance policies. Read informative articles on small business insurance coverages - and how they can help shield your company from legal liabilities.
- Business General Liability
- Business Liability
- Business Owners Policy (BOP)
- Certificate of Insurance
- Comprehensive General Liability
- Directors and Officers Liability
- Employers Liability
- Employment Practices Liability
- Home Based Business
- Independent Contractor
- Liability Insurance Certificate
- Liability Insurance
- Professional Liability
- Small Business
Your small business faces many potential disasters including: fire, floods, theft, equipment breakdown, lawsuits from clients or customers and current & former employees. Any many other risks you haven't even thought about.
A small business commercial insurance program should provide protection for both larger and smaller disasters. The obvious things like fire, flood and theft most business owners thnk about... but what if a hacker infects your computers with a virus - and files containing private customer information like credit card and Social Security numbers are stolen?
Who is going to pay to fix your customers credit rating etc.? Will your insurance pay for the cost? You need to know that.
Your commercial insurance program should cover events that can close down your company, or cause it to lose revenue. Anything less than that is not enough coverage. Commmercial insurance doesn't cover everything, and all policies have exclusions and limits.
You need a written plan that allows you to get your operations back up and running as quick as possible.
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