There are hundreds of businesses located in the small city of Benton, Kentucky. These businesses are extremely important since they provide much-needed goods and services to the people in the community and drive the local economy. When disaster strikes, business insurance can help these companies remain profitable by covering the associated costs
Choosing the right businesses insurance policies can be a complicated task, but you don't need to go it alone. Independent insurance agents in Benton can help you build a comprehensive coverage package by identifying your company’s specific risks and advising you about the policies that can cover against them. Find an insurance agent near you to learn more.
Why Is Liability Insurance Important for Businesses in Benton?
Liability insurance is an extremely important part of every business insurance policy. It's designed to cover court costs, legal fees, and damages if your company is sued for a covered event. All business insurance policies include commercial general liability insurance, or CGL. This standard coverage has a few coverage components:
- Premises liability insurance: This covers third-party injuries, illnesses, and property damage that occur on your business property.
- Product liability insurance: This covers third-party injuries, illnesses and property damage that were caused by products your business produces, sells, or promotes.
- Advertising liability insurance: This covers your liability risks if you are accused of copyright infringement, false advertising, deceptive pricing, or other advertising mishaps.
CGL cannot cover your business against all of its liability risks. An independent insurance agent can help you identify any other liability exposures your business may have, and can recommend the appropriate policies to cover against them.
The following are examples of some of the many commercial liability insurance products available to your Benton business:
- Employment practices liability insurance: This covers lawsuits related to accusations of illegal business practices such as discrimination, harassment, and wrongful termination.
- Environmental liability insurance: This covers businesses that use or produce toxic substances. It can pay for clean-up costs and damage if an accident leads to the pollution of the ground, water, or air.
- Cyber liability insurance: This covers against financial losses and liabilities if hackers access your computer systems and steal sensitive customer data such as financial information, credit card numbers, Social Security numbers, or personal data.
- Commercial vehicle liability insurance: This covers against your company’s increased liability in the event that one of your employees causes an accident while driving a business-owned vehicle.
You can learn more about these and many other commercial liability coverage options by consulting a local independent insurance agent.
Does Benton Business Insurance Cover All Your Business Assets?
All business insurance policies include commercial property coverage. This is designed to compensate your business for loss or damage to your commercially owned property, including office furnishings, décor, outdoor signs, merchandise, and inventory.
In Benton, businesses are most likely to experience property loss or damage due to such hazards as fires, property crimes, freezing temperatures, severe storms, high winds, and hail. Tornadoes also pose a threat to area businesses. The tornado risk in Benton is 68% higher than the national average rate. Fortunately, commercial property insurance covers against all these risks.
Sometimes, commercial property insurance isn't enough, and specialized property coverage is necessary. Depending on the nature of your business operations, your insurance agent may recommend adding:
- Inland marine insurance: This covers portable business property while it's in transit or is stored away from your place of business, such as at a worksite.
- Boiler & machinery insurance: This covers the repair or replacement of broken-down business equipment as well as business losses associated with machine malfunctions.
- Bailee's insurance: This covers your customers' property when it is in your custody, care, or control, such as if you are providing repair or maintenance work.
- Flood insurance: This is necessary for businesses at risk of flooding, since commercial property insurance will not cover flood damage. Businesses near Town Creek and the Clarks River are most at risk, but when heavy rains fall, flash flooding can occur just about anywhere in this city.
Your insurance agent can help you be sure that all of your business assets are appropriately covered, and that your coverage limits are high enough to enable you to rebuild, repair, or replace, as necessary.
How Can Business Interruption Insurance Help Benton Businesses?
Major disasters like tornadoes can do more than just damage your commercial property. They also have the potential to force your business to remain closed for an extended period while repairs are made.
A closure that lasts for weeks, or even months, can be financially devastating, especially for a small company. Business interruption insurance provides a solution to this problem.
- Number of federally declared disasters in KY since 1953: 77
- Most common reasons for declared disasters: severe storms, floods, and fire
- Average number of tornadoes in KY per year: 24.2
Business interruption insurance is designed to provide your company with a continuation of income when a covered event leads to a long-term closure. That way, your business can afford to pay regular monthly expenses such as utility payments, loan installments, and employee salaries, even though your business is temporarily unable to generate revenue.
Business interruption insurance isn’t a good fit for every company. Talk to a local independent insurance agent to discuss your day-to-day operations and determine whether a policy is right for your particular business.
Do Benton Businesses Need Workers’ Compensation Insurance?
Workers’ compensation insurance is designed to cover the cost of medical treatment, lost wages, and other expenses related to workplace injuries and occupational illnesses. In the event of a fatal work-related injury, this insurance can also provide long-term benefits to surviving family members and dependents.
In the state of Kentucky, all employers are required by state law to cover their full-time and part-time employees with workers’ compensation insurance.
There are a few exceptions. It isn't necessary to cover sole proprietors, LLC members, or corporate partners, though you can cover them if you want to. You also don't need buy coverage for:
- Farm workers
- Domestic servants in a home with fewer than two full-time workers
- Employees protected by federal laws (such as railroad workers and maritime workers)
- Independent contractors
The cost of workers’ compensation is based mainly on the types of jobs your employees do. The higher the risk that your workers will suffer significant injuries, the higher the price for coverage will be. A local independent agent can help you review your costs and can match you with an insurance company that specializes in covering businesses in your industry.
What about Insurance Products for Employee Benefits Packages?
While it’s true that healthcare coverage is expensive, subsidizing it for your employees can have cost-saving benefits. Studies conducted by human resources professionals have demonstrated that when businesses offer employee benefits like vacation time, sick time, life insurance, and health insurance, they find it easier to attract and retain good workers.
- Annual amount spent on healthcare coverage by KY businesses: $697,974,000
- Average annual cost of health care in KY: $5,077/person or $15,463/family
There are many different life and health insurance products available for you to choose from. This can make it difficult to determine which policies are the best to include in your employee benefits package. A local independent insurance agent can explain the pros and cons of each of your various options so you are able to make an informed decision.
Why Work with an Independent Insurance Agent in Benton, KY?
Every business has it is own specific risks and exposures. That's why insurance companies enable you to fully customize your business insurance coverage. An independent agent can offer guidance and can shop around to help you find the best and most affordable commercial insurance policies to cover your particular business.
Contact an independent insurance agent with an office in or near Benton to learn more. You'll soon discover how easy it can be to build a comprehensive, yet affordable, business insurance policy package.
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