At the crossroads of the great tourist industry in Northern Kentucky horse country and the rest of the world through the Cincinnati airport, Florence, KY is a great place to do business. With a great business climate in Kentucky, there are a lot of opportunities for entrepreneurs in and around Florence. But you have to have good insurance to take care of the eventualities you can’t always plan for. Kentucky is a state that is home to many small businesses:
- During previous years, the Bluegrass State had 340,746 small businesses.
- They employed 686,517 people.
Opening a small business is a daunting challenge, however, and it takes the right insurance. The need for reliable insurance in Florence is emphasized by a total of $12.8 million recently paid out for business insurance claims. The best way to cover your liability and get the insurance you need is to form a close relationship with your Independent Insurance Agent. Your agent will get to know your business and find the best Florence commercial insurance that fits your needs and your budget.
Your business insurance needs start with general liability coverage, which covers claims for injuries to other people and third-party property damage to individuals, such as customers or delivery persons. Any incident on your property presents you with unlimited liability because of potential medical costs. According to a recent Travelers Business Risk Summary, 60 percent of small-business owners ranked medical cost inflation as their highest concern and over 30 percent said they felt the least prepared to handle this concern. If you are sued over some incident on your premises, you need to have someone there for you in court.
If you manufacture a product or provide professional services, you also need product or professional liability insurance to address the same concerns as general liability. 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. The only way you can protect yourself against the liability you take on just by operating is to have the right insurance.
Business Interruption Insurance for Florence Businesses
You never know just what might shut your business down. Power interruptions from a large winter storm can last for days. If you suffer a fire or a water pipe break, you won’t be able to be back in business until your property is put back in shape. Business interruption insurance covers the cost of being down during this time.
Your coverage pays out based on the revenue that you weren’t able to collect when closed, calculated from the receipts from when you were open. It covers the ongoing costs as well, such as power and employee benefits, until you are back up and operating again. Business interruption insurance is vital in covering any unforeseen circumstances that may affect you for an extended period. It’s there to keep you going until you can have the doors open for business again.
Property Insurance for Florence Businesses
Property insurance covers the cost of putting back together the space and equipment that you need to operate. Once you have the coverage to keep yourself in business through any unforeseen event, it’s important that you have the right insurance to help you restore your business property so that can operate efficiently and quickly. The list of unforeseen events that can ruin or damage your space or equipment is long, but it includes the following:
- Water pipe breaks
- Natural disaster
- Anything else you can’t plan for
There were 119 natural disasters in the United States in recent years. Insurance covered only 61 percent of these losses, leaving $9.7 billion in damage, which businesses had to take care of on their own. Property insurance is a key part of making sure that an event you have no control over won’t shut down your business. That way, you can bounce back and keep going.
Workers' Compensation for Florence Businesses
Kentucky state law requires businesses to have workers' compensation insurance. This covers your employees if they are injured on the job whether from one single incident or from repeated actions over an extended period of time. Nationally, this came to $1.27 for every $100 in wages in recent years, or an average of $612 per employee. Usually referred to as “workman’s comp,” the insurance premiums are based on the number of claims you have had in the past. New businesses are assessed by the kind of work done and the categories of employees on the job.
Businesses save money by putting in place injury reduction programs and equipment. This is why a close relationship with an Independent Agent who understands workman’s comp is vital to finding an affordable policy that fits under the applicable laws and regulations for your business. Keeping your workers healthy keeps your business operating and saves you money.
Employee Coverage for Florence Businesses
One of the biggest insurance costs for any business that employees a lot of workers is health insurance. A total of $698 million was paid for employee health care coverage in Kentucky in recent years. The average single person health plan cost employers $5,077, and a family policy typically cost $15,463. This is only one of the kinds of coverage you may want to offer to your employees, however, and you have many options:
- 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 the employee, as well as the family, protected by your business.
- Disability insurance: Similar to life insurance, this pays out when an employee cannot work anymore for any reason.
Many Kentucky businesses offer packages for their employees to keep the best ones and reward their loyal service. It’s a key way to reduce training costs and improve service.
Cyber Crime Insurance for Florence Businesses
Recently, Kentucky experienced 2,358 reported identity thefts, which despite the big number was actually a rather low rate. This is just one area you may not think of getting coverage for, and it’s a great example that shows why an experienced professional who understands your business insurance needs is essential. The potential liability in cases of identity theft is limited only by your credit, and it can be devastating.
For this and all your insurance needs, the best place to start is always with your Independent Agent. Your agent knows business insurance in Florence and needs to get to know your business insurance needs. This relationship is critical for any small business that needs to be covered according to the regulations and needs to understand the liabilities that every business has when it opens the doors and hire new employees.
Talk to your agent today, and get the process started so that you can concentrate on expanding your business without worry.