Even far out into the country, Kentucky is a great state to open a business. The business climate is strong and healthy, and the Bluegrass State does everything it can to encourage entrepreneurs of all kinds:
- Kentucky is home to 340,746 small businesses.
- These businesses employ 686,517 people.
You won’t find a more dynamic state in which to open a business. Opening a small business is still a lot of work, however, and it takes the right insurance. The need for reliable insurance in Mount Olivet, KY is shown by a total of $3.7 million paid out in recent years for business insurance claims. The best place to start is to establish a close relationship with your local Independent Insurance Agent. Your agent will get to know your business and help you to navigate the complex options to find the coverage that you need. By obtaining multiple quotes from many different agencies, you can compare the rates and pick the one that is most affordable for your business, too.
The first consideration for any business insurance is general liability. This covers you for any injury that takes place on your premises to customers, visitors or delivery persons. The liability that you take on simply by opening your doors is nearly unlimited due to the potential cost of an injury, as medical bills keep rising. You never know just how expensive an injury might be. The Travelers Business Risk summary found in recent years that:
- 60% of all business felt medical cost inflation was their biggest concern.
- over 30% responding felt unprepared to handle this risk.
General liability insurance is an absolute requirement to cover you for all eventualities related to injuries. Similarly, product liability coverage or professional liability covers you for any injuries that come from your products or services. The Insurance Information Institute found that 71 percent of product liability awards in recent years and 53 percent of medical malpractice awards were for more than $1 million. If you provide a product or service, you have to be protected from these claims.
Business Interruption Insurance for Mount Olivet Businesses
You never know when you might not be able to conduct business as usual. An extended power outage can keep you shut down for days, especially if it comes during a severe winter storm. Fires and water pipe breaks are other unforeseen situations that might keep you from operating for an extended period until the damage is fixed.
While you are down, business interruption insurance pays you based on the revenue you would have brought in during that time. It’s calculated from your revenues while you are up and operating and usually covers all the costs that are ongoing even when you aren’t. This coverage is usually the difference between being able to survive a disaster and not, so it is a critical part of every Mount Olivet commercial insurance coverage.
Property Insurance for Mount Olivet Businesses
After covering the losses from being unable to operate, the next most important thing is to get your property fixed up so you can start up again. A good policy pays out without a lot of hassle after an event so that you can get back on your feet quickly. Storms are not common in bluegrass country, but when they do strike, they can cause a lot of damage.
There was a total of 119 natural disasters across the U.S. in recent years. Of the damage that resulted, only 61 percent was covered by insurance. Property owners had to cover $9.7 billion in losses on their own as a result. That’s why the cheapest insurance for your property isn’t always the best choice for you. You need to ask whether you can afford to take on risk by yourself before you take on a policy that does not cover your premises completely in the case of a disaster that shuts you down.
Workers' Compensation for Mount Olivet Businesses
Usually referred to as “workman’s comp,” workers' compensation insurance covers employees when they are injured on the job whether by a single incident or from repetitive motion over a long time. It pays out for the period when they cannot work. Kentucky state law requires this for every employee. Nationally, the cost for workman’s comp came to $1.27 for every $100 in wages in recent years, an average of $612 per employee.
The cost of this insurance is based on the kind of employees you have, taken from tables developed from claims taken out by employees in similar businesses. When you have a new business, you are given a rate that is not negotiable, but over time, you can earn a lower rate based on fewer claims by your employees. Depending on your insurance company, there are many things that you can do to keep your rate low, including having ergonomic equipment available and providing special employee training on how to avoid injury on the job.
Employee Coverage for Mount Olivet Businesses
The largest single insurance cost for most businesses is employee 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 costs employers $5,077.
- A family policy typically costs $15,463.
There are many kinds of insurance you may want to offer your employees, including 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 as well as protecting the family.
- Disability Insurance: Similar to life insurance, this pays out when an employee cannot work anymore for any reason.
Offering insurance plans to your employees may not cost you much but can improve employee morale and loyalty. Rates and benefits for employee plans vary widely from one provider to another, so it’s important to shop around for the coverage that meets both their needs and your business’s budget.
Cyber Crime Insurance for Mount Olivet Businesses
There were 2,358 reported identity thefts in Kentucky in recent years, a shocking number but actually a lower rate than most states. You may not think about coverage for eventualities like this, but if you aren’t covered, the effect can be devastating. The potential liability is limited only by your credit.
For all of your Mount Olivet business insurance needs, the most important thing you can do is to contact your Independent Insurance Agent. After getting to know the many needs of your business, your agent can then help you navigate the complex array of coverage you need to be protected and can then obtain multiple quotes to find the best price for you to compare your options.