Shelbyville, KY is a great place to own a business. The natural beauty of its horse country enhances a thriving tourist trade. The area is also home to more small manufacturing operations every day. Kentucky has a good business climate all around, but there are still risks that every business requiring good insurance carries. How much does Kentucky mean to business?
- There are approximately 340,746 small businesses.
- They employ 686,517 people.
- There were total insurance claims of $3.7 million against them, however.
Starting a business is difficult for many reasons, and one of them is understanding the insurance requirements. The best step to finding the right Shelbyville commercial insurance is to develop a good relationship with an Independent Insurance Agent. Because these agents understand the area and the laws and union requirements, they can help you navigate your options and find the best quotes for your business needs at a price you can afford.
Business insurance begins with protection against general liability. This is coverage against claims for injuries by people who are on your property, including delivery personnel and customers. The insurance company goes defends you in a court of law if you are sued by anyone claiming a loss. This is critical because any incident on your property can become very expensive very quickly. A recent Travelers Business Risk summary determined the following facts:
- 60% of all businesses said that medical cost inflation was their biggest concern.
- Over 30% responded that they felt unprepared to handle this risk.
If an injury takes place on your property, you have to be ready to handle these costs if you are held liable. For any claims that come from your products away from your property, you need to have product liability coverage. The issues are the same for this as well. The Insurance Information Institute found that in recent years, 71 percent of product liability awards and 53 percent of medical malpractice awards were for more than $1 million. Protection against these kinds of nearly unlimited costs are critical for any business.
Business Interruption Insurance for Shelbyville Businesses
If for any reason you can’t open your doors on any particular day, this insurance coverage matches your income until you can resume operations again. It’s based on the revenue you took in when times were good and carries through until the problem is fixed and you are back operating. Prolonged business interruption can happen for many reasons. A fire or other damage to your property from a storm is the main reason that your Shelbyville-based business could be shut down for some time. There can also be other events that you would reasonably not be able to see coming. This insurance covers the ongoing costs as well, such as power and employee benefits, until you are back up and operating again.
Property Insurance for Shelbyville Businesses
While it’s good to have your costs covered when you can’t operate, you need good insurance on your property for the cost of putting it all back together. It’s not just a matter of getting it all fixed up, it’s about making sure it’s done in a timely manner without a lot of hassle. This is a particular concern when there is widespread damage from storms, such as the tornadoes that are far too frequent around Shelbyville:
- Recently, there was a total of 119 official natural disasters across the U.S.
- Only 61% of the losses were covered by insurance.
- Property owners were left with $9.7 billion in losses to cover on their own.
When disasters of any kind strike, the right property insurance coverage is critical to getting it all fixed up so that you are back in business in the shortest time possible without having to find the money to do it on your own.
Workers' Compensation for Shelbyville Businesses
Workers' compensation insurance is usually known as “workman’s comp.” It covers the expenses incurred by your employees when they are injured on the job whether by a single incident or from repetitive motion over a long time. Kentucky state law requires this for every employee, and it pays out whenever employees are unable to work. Nationally, this averaged out to $1.27 for every $100 in wages in recent years, or an average of $612 per employee.
The cost of this insurance is based on the kind of work your employees do, based on tables developed from claims taken out by employees in similar businesses. When you have a new business, there is a rate given to you that is not negotiable, but with time, a lower rate of claims by your employees lowers your cost. You may also get credit for ergonomic equipment and employee training to reduce injuries on the job.
Employee Coverage for Shelbyville Businesses
Beyond the required workman’s comp, there are other forms of insurance that you need or may want in order to cover your employees. These include the following:
- Health plan insurance: This is now required by law for companies with 50 or more employees. However, even if you don’t have a business this large, you may want to provide this as an option for your employees.
- Life insurance: It’s important to cover your most important employees should something untimely happen to them. They may also want to at least be able to buy into protection for their families through your business as well.
- Disability insurance: This is like life insurance, but it pays out when an employee cannot work anymore for any reason.
Recently, $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. You may want to offer your employees a range of coverage to encourage loyalty and cut retraining costs, or your union contract may require it. There are many skilled employees to be found in Shelby County, but they may need certain benefits before they can join your business’s family.
Cyber Crime Insurance for Shelbyville Businesses
Protecting your business against all unforeseen circumstances is the key to a good commercial insurance policy. There are many areas you may not be aware of where you need coverage, such as protection against losses from cyber crimes. Recently, there were 2,358 reported identity thefts in Kentucky, a low rate that earned the state the ranking of 43rd overall. It is absolutely critical that your business is protected against this rampant and growing problem. If your business's identity is stolen, the potential liability is nearly unlimited if you don’t have the best insurance policy.
For all of your Shelbyville business insurance needs, the most important thing you can do is to contact your Independent Insurance Agent. Once your agent gets to know the many needs of your business, the agent will be able to help you navigate the complex array of coverage you need in order to be protected and can then obtain multiple quotes to find the best price for you to compare your options.