The beautiful land around Berea, KY is a good reason to live here. From the festivals to Berea College to the allure of horse country, there are a lot of reasons to make Berea your home. With so much light manufacturing springing up in and among the tourist trade, there is also a powerful attraction to the inspiring entrepreneur. The state of Kentucky has a healthy business climate. It boasts 340,746 small businesses, employing 686,517 people. The small business climate is strong and growing. But with these businesses came total insurance claims of $3.7 million paid out in recent years.
Starting a business is difficult for many reasons, and one of them is understanding insurance requirements. It’s vital not only to be protected from unforeseen circumstances but also to meet the state laws and other requirements that come along with the quality workforce you can expect in Berea. The best way to take care of this is to form a good relationship with an Independent Insurance Agent. Your agent will get to know your business and find the best Berea commercial insurance that fits your needs and your budget.
Business insurance starts with general liability insurance. This covers injuries to other people and third-party property damage to individuals, such as customers or delivery persons. It also covers the necessary legal defense if your business is sued over a covered incident. The cost of incidents, no matter how small, is nearly unlimited because of potential medical costs. The recent Travelers Business Risk Summary found the following:
- 60% of small-business owners ranked medical cost inflation as their highest concern.
- Over 30% said that they felt the least prepared to handle it.
Businesses that provide professional services or manufacture products also need professional or product liability insurance. This works in much the same way as general liability, but it is for incidents other than those on your premises. According to a national study by the Insurance Information Institute, 71 percent of product liability awards and 53 percent of medical malpractice awards amounted to $1 million or more. You have to be protected against these liabilities even before you open your doors for the first time.
Business Interruption Insurance for Berea Businesses
Many things might prevent your business from opening up on a given day. Power interruptions, because of a nasty winter storm, can last for days. If you have a fire or a water main break, you won’t be able to be back in business until the mess is cleaned up. This is why you need to have business interruption insurance. This coverage pays based on the revenue that you weren’t able to collect when closed, gleaned from the receipts from when you were open. It also covers ongoing costs, such as power and employee benefits, until you are back up and operating again. Business interruption insurance is vital for covering any unforeseen circumstances that may affect you for days on end.
Property Insurance for Berea Businesses
Once you have coverage that makes up the difference for when you are closed, you need to have insurance that covers the cost of putting everything back together. That is what property insurance is all about. It covers the cost of the physical space and equipment that you need in order to operate. There are many reasons your property might suffer damage. Fire and storms are the most common, but there are many unforeseen circumstances beyond your control that might keep you from operating:
- In recent years, there were 119 recognized natural disasters in the United States.
- Insurance covered only 61% of these losses.
- That left $9.7 billion in damage that businesses had to fund out of pocket.
Although property damage is somewhat easy to repair or replace after an incident as compared with a liability issue, you still need good property insurance to ensure you can resume operations as quickly as possible.
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Workers' Compensation for Berea Businesses
Kentucky law requires every business with employees to carry workers' compensation coverage, typically known as “workman’s comp.” This insurance pays out to an employee when the employee is injured on the job and cannot work for some time, regardless of whether that injury is from a one-time event or from repetitive stress.
- In recent years, workman’s comp paid out $1.27 for every $100 in wages.
- That comes to an average of $612 per employee.
Your assessment for workman’s comp is based on the employees you have and the type of work they do. If you have a long record of employee claims, the cost is based on your own history. New businesses are charged based on schedules that have come from similar businesses in and around Berea. There is a lot you can do to keep your workman’s comp costs down. Some carriers give you credit for ergonomic equipment and employee training that reduce injuries on the job. This is one area where an Independent Agent can help you quite a lot, beyond just finding you the right policy.
Employee Coverage for Berea Businesses
Health insurance is certainly expensive. During previous years, $698 million was paid for employee health care coverage in Kentucky. An average single person health plan cost employers $5,077 while a family policy ran $15,463. But it is only one of the kinds of coverage you may want to offer to your employees. Options include the following:
- Health plan insurance: This is required by law for companies with 50 or more employees, but many smaller businesses are opting to provide this coverage as a service for their loyal workers.
- Life insurance: In case something happens to your employee, you may want your business to cover the employee and protect the employee's family.
- Disability insurance: Similar to life insurance, this pays out when an employee cannot work anymore for any reason.
Employee coverage is often a great way to reduce turnover among employees. Many Berea businesses offer packages for their employees to keep the best ones and reward their loyal service. This cuts down on training costs and improves service.
Cyber Crime Insurance for Berea Businesses
With all the kinds of insurance that your business needs, there are always a few liabilities that you may not even think of. One example is identity theft and cyber crime, which has almost unlimited liability – limited only by your credit. It’s a serious and growing problem everywhere. There were 2,358 reported identity thefts recently in Kentucky. Policies are available to protect your business at affordable rates, assuming you take a few precautions of your own and work with your insurance carrier.
Business insurance that protects your growing Berea company from all the liabilities and meets all the regulations is complicated. You need expert help to navigate it. Your Independent Agent can help you find the coverage you need to protect the business you work so hard to build at prices you can afford. Talk to them your agent to develop the relationship that will protect you at the price you want for many years to come.