Between 2011 and 2019, there were 4,282 business bankruptcy cases filed in the state of Indiana. Many of these bankruptcies could have been prevented if the companies had been protected by suitable business insurance policies.
Local independent agents make it easy to find the best and most affordable coverage for your company. Set up an obligation-free consultation with an insurance agent near you to learn more and to start comparing customized business insurance quotes for your Covington business.
How Much Does Business Insurance Cost in Covington?
Business insurance premiums can vary from one company to the next. While a sole proprietorship run out of someone’s home may only cost a few hundred dollars a year to fully insure, coverage for a large company with several employees can have an annual cost of several thousands of dollars.
Business insurance costs are influenced by factors such as the following.
- The type of company you own
- The size of your company and its expected annual revenues
- The number of employees you have
- The value of your company’s assets
- Whether your company owns and operates motor vehicles
- The liability risks your company faces
- The crime rate and weather risks where your business is located
The only way to find out how much a comprehensive business insurance policy package will cost for your company is by requesting customized quotes from a few competing providers. Independent insurance agents can save you time and money by doing the comparison shopping for you.
Why Do Businesses in Covington Need Liability Insurance?
No business is too small to find itself on the wrong end of a liability lawsuit. If your company is sued, the associated costs can add up quickly, even if the courts end up ruling in your favor.
Business liability insurance is designed to absorb expenses like court costs, legal defense fees, settlements, judgements, and other financial damages if your business is sued for a covered event.
To be fully covered, you will need to have the right policies to cover against each of the potential liability risks your company faces. Local independent agents can perform a complete risk assessment on your business and can recommend appropriate liability products to cover against each exposure.
Here are examples of some of the many commercial liability products that are available.
- Premises liability insurance: This covers third-party injuries and property damage that are caused by an accident on your business premises.
- Product liability insurance: This covers third-party injuries or property damage caused by a defect in a product your company produces or sells.
- Commercial vehicle liability insurance: This covers against potential liability lawsuits if one of your employees causes a collision while driving a company-owned vehicle.
- Cyber liability insurance: This covers your company’s financial responsibilities to affected individuals if hackers break into your computer system and access data like your customers’ or employees’ financial and personal information.
- Employment practices liability insurance (EPLI): This covers against accusations of illegal business practices such as wrongful termination, discrimination, harassment, breach of contract, and retaliation.
- Errors & omissions insurance: This covers individuals in professional positions if negligence, errors in judgement, or other professional mistakes cause clients to suffer financial losses or other damage.
A local independent agent can provide more in-depth information about these and many other commercial liability products and can offer advice about which are a good fit for your Covington business.
What Are the Property Damage Risks in Covington, IN?
Businesses in Covington are most likely to experience property loss or damage due to hazards such as the following.
- Property crimes like shoplifting and vandalism
- Accidental fires and explosions
- Severe storms like electrical storms, windstorms, and hailstorms
- Heavy snows
- Ice accumulation and freezing temperatures
Fortunately, commercial property insurance, which is a standard part of every business insurance policy, can cover your business property against loss or damage caused by all these hazards.
You may need to supplement your commercial property insurance with additional insurance policies for your business property to be fully covered against all potential risks. Your insurance agent may recommend the following.
- Flood insurance: This is important because flood damage is not covered by commercial property insurance. Businesses located near the Wabash River and its tributaries are most at risk, but flash flooding can happen anywhere in Covington. Your agent can help you obtain an affordable policy through the NFIP (National Flood Insurance Program).
- Inland marine insurance: This can cover your company’s portable property when it is in transit over land or is being stored away from your place of business.
- Boiler & machinery insurance: This can cover the cost to repair or replace your company’s well-maintained essential machinery and equipment if it breaks down or malfunctions.
- Bailees insurance: This can cover your customers’ valuable property whenever it is in your business’s custody, care, or control, such as if you are providing repair, maintenance, or alteration services on it.
A local independent insurance agent can help you be certain that all your business assets are suitably covered.
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How Does Business Interruption Insurance Help Companies in Covington, IN?
On average, 22 tornadoes touch down in the state of Indiana every year. The risk of tornado activity in the Covington area is 83% greater than the national average.
Major disasters like tornadoes and structure fires can force businesses to shut down while repairs are made. When businesses are unable to generate revenue for an extended time, they can be forced into bankruptcy.
Business interruption insurance protects against this risk by providing a continuation of income if your business is forced into temporary closure because of damage caused by a covered event.
That way, your business will have the funds necessary to continue paying regular expenses like rent, bills, loan installments, and employee salaries until it can resume normal operations.
Talk to a local independent insurance agent for help determining whether business interruption insurance is a good fit for your Covington business.
Are Businesses in Covington Required to Carry Workers’ Compensation Insurance?
With very few exceptions, all employers in Covington are required by Indiana state law to carry workers’ compensation insurance.
This insurance is designed to cover your employees’ medical treatments and lost wages if they are injured on the job or develop an occupational illness. It can also provide death benefits to surviving family members if a work injury proves fatal.
Costs for coverage are based primarily on how many employees you have and the types of jobs they do. The more hazardous the job, the more it will cost to cover. Therefore, for instance, a roofing contractor would be more expensive to cover than an accountant.
A local independent agent can help you compare policies at quotes from a selection of authorized providers that specialize in covering businesses like yours.
Are You Looking for Insurance Products for Your Employee Benefits Package?
Offering a competitive employee benefits package that includes perks like subsidized health insurance, life insurance, paid vacation, paid sick time, retirement plans, and other benefits can make it easier for your company recruit and retain a talented pool of employees.
This has been demonstrated in numerous studies conducted by human resource professionals.
If you are interested in purchasing health and life insurance policies for your employees, a local independent agent can help you review your various options so you can make an informed decision about which products are good for your employees while still being affordable for your business.
Why Work with an Independent Insurance Agent in Covington, IN?
Insurance companies enable business owners to fully customize their business insurance by offering a wide range of policies and options. However, having so many products and options available can make building a comprehensive policy package complicated and confusing.
Independent insurance agents in Covington can simplify the process. These agents can review your company’s risks and exposures and can recommend the best and most affordable products to cover against each of them. Talk to an insurance agent near you to get started.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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