North Dakota Check Cashing Insurance

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North Dakota Check Cashing Insurance Policy Information

ND Check Cashing Insurance

North Dakota Check Cashing Insurance. Many businesses and individuals use checks as a means to pay for rendered goods and services. For a lot of people, this method of payment isn't convenient.

Not only is a bank account needed to cash a check, but it can take several days - if not more - for a check to clear. Whether people don't have a bank account or they do but they need cash fast and don't have the time to wait for a check to clear, they turn to check cashing services.

Since there will always be checks and there will always be a need to cash the documents, owning and operating check cashing business can be a worthwhile endeavor.

Check cashing service companies cash customers' checks for a fee or a percentage of the check that is cashed. Some will not cash personal checks.

They issue money orders, transmit funds electronically, and extend short-term loans called payday advances, generally at a high rate of interest plus a processing fee.

They operate from small offices and can be franchise operations or independently owned businesses. They are open for extended hours for their customers.

Just like a business in other industries, if you're planning on opening a check cashing service, making sure that you set yourself up for success is vital.

Choosing a good location, securing any necessary licensed and permits, and setting up a premium-quality software management system are just some of the components that you'll need to attend, there's another crucial element that you're going to need to invest in: North Dakota check cashing insurance.

in fact, insurance coverage is one of the most vital components of owning and operating a successful ND check cashing service.

Why is commercial insurance so important? What type of coverage do you need? Read on to find the answers to these questions and more.

North Dakota check cashing insurance protects your check cashing store from lawsuits with rates as low as $77/mo. Get a fast quote and your certificate of insurance now.

Why Do Check Cashing Stores Need Insurance?

As the proprietor of a ND check cashing service, you face numerous risks. Also just like business owners in any other industry, as the owner and operator of a check cashing service, you are liable for any mishaps that may occur. Examples of some of the things that could go wrong with your check cashing business include:

  • A customer, vendor, or any other third-party could sustain an injury on the premises of your check cashing store and file a lawsuit against you.
  • One of your employees could suffer a work-related injury that requires medical care.
  • The building you operate your check cashing service out of could be damaged in an act of nature.
  • The software system you use could be targeted by a cyberattack and result in a data breach.
  • Your business may need to be closed down for a prolonged period of time, and that closure could result in a loss of income.

And these are just a few examples of the situations that could occur, and if they do, you are responsible for the associated costs. As you can imagine, the costs could be exorbitant, and if you have to pay for them out of your own pocket, you could end up in a serious financial situation.

If you have the right type of North Dakota check cashing insurance coverage, however, and something unexpected occurs, instead of paying the associated costs yourself, your insurer will cover them for you.

In other words, having the right type of insurance for your check cashing business can protect you from serious financial hardship.

What Type Of Insurance Do Check Cashing Services Need?

The specific type of North Dakota check cashing insurance coverage you're going to need for your check cashing service depends on a variety of factors; where your ND business is located, the specific type of services you offer, and the size of your operation, for example.

In order to determine exactly what type of coverage you'll need to properly protect your operation, speaking with an experienced agent who specializes in commercial insurance vital. With that said, however, here are a few examples of the key kinds of coverage check cashing businesses need:

  • General Liability: which protects you from third-party injury and property damage claims.
  • Commercial Property: which covers the physical structure of your check cashing business, as well as the contents within it, against acts of nature (fires, pipe bursts, some types of storm damage, etc.), theft, and vandalism.
  • Workers' Compensation: which will pay for any medical care your employees may require if they are involved in a work-related accident, as well as wages they may lose if they are unable to work while recovering.
  • Cyber Liability: which protects your business from any data breaches that may impact your software and result in the compromise of the sensitive information stored within the software.

The above-mentioned policies are just a few examples of the type of North Dakota check cashing insurance coverage you should consider for your check cashers business.

ND Check Cashing's Risks & Exposures

Premises liability exposures come from slips and falls due to public access to the premises. As customer safety and security are very important, the firm may have one or more armed security guards on duty during operating hours. All employees must be trained in proper procedures during a holdup to minimize the possibility of violence or kidnap of customers.

Floors should be in good condition, with steps and uneven surfaces prominently marked. The number of exits must be sufficient and well-marked, with backup lighting in the event of a power failure. Steps should have handrails, be well-lighted, marked, and in good repair. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls.

There should be security in the parking lot equal to or better than the surrounding area. If the business is open after dark, lighting must be adequate.

Personal injury exposure arises from a breach of customers' privacy, confidentiality of their financial records, and the apprehension of suspected robbers.

The use of closed-circuit camera systems prevents such incidents from evolving into a "he said she said" situation. Employees must be trained to handle such situations properly.

Workers compensation exposures may be severe because of the crime potential and the possibility of injury or death to guards, cashiers, and managers during an armed robbery. Cashiers should be separated from customers by barriers such as high counters.

Those working with customers at walk-up or drive-in windows should be protected by bulletproof glass enclosures. Cashiers are exposed to repetitive motion injuries from working on computers. All workstations should be ergonomically designed to reduce the chance of such injuries.

Property exposures are primarily from fire due to the electrical wiring for computers, printers, and other electronic office equipment, heating, and air conditioning systems. All wiring must meet current codes, be well maintained, and be adequate for the service's operations.

Circuitry on electronic equipment may be easily damaged from smoke, water, and heat, resulting in a total loss even with a small fire. The building and its contents may be damaged during break-ins, robberies, and vandalism.

Appropriate security measures include physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department. Extra expense coverage should be considered for the company to continue operations after a loss.

Crime exposures are primarily from employee dishonesty, either from the theft of cash or from the improper transfer of funds. As check cashing services require a large amount of cash on hand to support operations, money and securities exposure is high from armed robbery and safe burglary.

Check cashing firms need a Financial Institutions Bond to cover these exposures. Background checks should be done on anyone having access to money. Regular monitoring and auditing of the books by outside auditors are necessary to prevent and identify problems.

Each employee should take at least one continuous week of vacation a year. Money kept in cash drawers should be moved regularly to the safe to prevent a large buildup of cash available to thieves.

Bank drops should be made periodically throughout the day. Since there may be a significant accumulation of cash on premises, appropriate security is important.

Inland marine exposures are from accounts receivable if there are billings to customers, computers for tracking financial transactions, and valuable papers and records for customers' information. Backup copies of all records, including computer records, should be made and stored off premises.

Business auto exposures are generally limited to hired and non-owned for employees using their own vehicles to run errands. If vehicles are provided to employees, there should be policies for personal and permitted use of the vehicles.

Any driver must have a valid driver's license and acceptable MVR. Vehicles must be well maintained with records kept in a central location.

North Dakota Check Cashing Insurance - The Bottom Line

To find out more about the exact types of North Dakota check cashing insurance policies you'll need, how much coverage your store needs - speak with an experienced insurance broker who understands the unique risks of check cashers.

North Dakota Economic Data, Regulations And Limits On Commercial Insurance

Made In North Dakota

Are you an entrepreneur? Are you thinking about launching a start-up business in North Dakota, or are you thinking about expanding an already existing business to the state?

If so, it's important to consider the economic trends and the commercial insurance requirements of the Peace Garden State.

Understanding the economic trends of state is crucial for business owners because this information indicates whether or not the climate is favorable for success.

Being aware of the commercial insurance policies that the state mandates is also important so that you know what types of coverage you need to invest in order to properly protect your venture and ensure you are complaint with the law.

Below, we offer an overview of these two critical factors for related to the state of North Dakota.

Economic Trends For Business Owners In North Dakota

Unemployment rate is a strong indicator of a state's economy. The lower the rate, the more people are employed, and that information is directly related to the success businesses are experiencing in the state.

In December of 2019, the Bureau of Labor Statistics reported that the unemployment rate in the Peace Garden State was 2.4%, which was 1.1% below the national average of 3.5%. This statistic indicates that North Dakota offers a favorable economy for prospective business owners who are thinking about establishing operations in the state.

Additionally, the state is tax-friendly, offers a healthy quality of life, and has a healthy startup environment, making it an ideal location for entrepreneurs.

As in most states, the areas where entrepreneurs can expect to see the most success in the North Dakota are urban locations and the suburbs that surround them. These areas offer access to more regional markets, provide larger markets, and offers a more diverse (both in numbers and qualifications) workforce.

As such, the best locations to start a business in ND include:

  • Bismarck
  • Dickinson
  • Fargo
  • Grand Forks
  • Mandan
  • Minot
  • West Fargo
  • Williston

Organizations in numerous sectors can expect to see success in this state, as there are several industries that are thriving in North Dakota. The top industries include:

  • Agricultur
  • Construction
  • Education
  • Energy
  • Healthcare
  • Hospitality and tourism
  • Manufacturing
  • Mining
  • Retail and wholesale distribution
  • Transportation
  • Utilities
Commercial Insurance Requirements In North Dakota

The North Dakota Insurance Department regulates insurance in ND. North Dakota mandates very few forms of insurance coverage by law. They enforce worker's compensation.

North Dakota requires you to have worker's compensation insurance if you hire even one employee on a regular basis. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors or domestic employees, though you should check to make sure any contractors you have are true contractors, and not employees.

North Dakota also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.

Additional Resources For Miscellaneous Insurance

Find informative articles on miscellaneous businesses including the types of commercial insurance they need, costs and other considerations.


Miscellaneous Business Insurance

An insurance contract is an agreement where one party obligates itself to make good the financial loss or damage sustained by a second party when a designated event occurs. The event must be fortuitous and happen by accident. The named insured must have insurable interest at the time of loss. One final point is that in order for any contract to be considered insurance, there must be a risk of loss.

Fortuitous Event - An occurrence largely beyond the control of any involved party; happening by chance; accidental; for example: fire, lightning, windstorm, explosion or flood.

Insurable Interest - In order to recover from a loss to property, the holder must have an insurable interest in the property at the time of the event or occurrence. An insurable interest is any right, title or interest in property where the holder of that right, title or interest sustains financial loss if the property is damaged or destroyed. Any lawful and substantial economic interest in the safety or preservation of the property from loss, destruction or damage also constitutes an insurable interest.

An entity does not have to be the property owner to have an insurable interest in it. Examples include, but are not limited to, mortgagees, trustees, vendors, lessees and bailees. Insurable interest for any entity must exist at the time the loss occurs.

Risk Of Loss - If property could never be destroyed, there is no risk of loss. If property must necessarily disintegrate or be destroyed, there is no risk of loss. Between these two extremes is the exposure of risk that can be insured.


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Also find North Dakota insurance agents & brokers and learn about North Dakota small business insurance requirements for general liability, business property, commercial auto & workers compensation including ND business insurance costs. Call us (701) 540-5400.

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