The Minnesota city of Coon Rapids is home to more than 4,000 small businesses. Manufacturing, construction, and retail companies tend to do quite well in this city, but businesses in a wide range of other industries have the potential to thrive here. As a business owner in Coon Rapids, it is important that you protect your investment with a suitable commercial insurance policy.
Every year, approximately $2.6 billion is paid out in business insurance claims in Minnesota. You will want to make sure that your company will get the coverage it needs if disaster strikes. Talk to a local independent insurance agent for help identifying the various commercial insurance policies that are right for your Coon Rapids business.
Liability Insurance for Small Businesses in Coon Rapids
Considering that the majority of liability lawsuits result in judgments exceeding $1 million, liability insurance can prove very valuable to your company. It is designed to cover court costs, legal defense fees, and damages for covered liability lawsuits.
All business insurance policies include commercial general liability insurance (CGL), which includes two main coverage components:
- Premises liability coverage: This covers third-party injuries, illnesses, or property damage that occurred as a result of accidents on your business premises.
- Product liability coverage: This covers third-party injuries, illnesses or property damage caused by products your company produces, sells, or promotes.
For many businesses, CGL alone is not enough to cover all potential liability lawsuits. An independent insurance agent can help you identify your other liability risks and can recommend the appropriate policies to protect against them.
Some examples of other liability insurance products that may be appropriate for your Coon Rapids business include:
- Professional liability insurance: Also known as errors and omissions insurance, this covers individuals in professional positions against charges of errors in judgment and other professional mistakes. Medical malpractice insurance is an example.
- Employment practices liability insurance: This covers your business if you are sued for perceived illegal business practices such as harassment, discrimination, and wrongful termination.
- Commercial vehicle liability insurance: This is required if your business owns a vehicle or fleet of vehicles.
- Environmental liability insurance: This covers your business if an accident leads to toxic substances, such as paint or chemicals, polluting the land, water, or air.
There are additional liability insurance products available. Talk to your independent agent to learn more.
Cyberliability Insurance Protects Coon Rapids Businesses
Cybercrime insurance is a liability product that deserves a closer look. This relatively new insurance product can provide coverage if criminals hack into your business computer system and access stored customer information such as financial or personal data.
- Number of identity theft complaints in Minnesota per year: 3,229
- Ranked 38th highest for identity theft complaints in the US
- Only 22% of businesses have a cyber/data breach response plan
Even if your computer system is protected by firewalls and passwords, sophisticated hackers can find ways to break in and can then use the acquired data to perpetrate identity theft and fraud. If your business is sued following a data breach, the resulting costs can be overwhelming if you are not property covered.
If your Coon Rapids business stores customer information, be sure to talk to your local independent agent about cyber-liability insurance.
Property Insurance for Small Businesses in Coon Rapids, MN
Commercial property insurance is included in your business insurance policy. It is designed cover all sorts of business-owned property, from computers and office furnishings to tools and machinery to outdoor signs. Some business property requires specialized insurance coverage so be sure to consult your independent insurance agent.
Coon Rapids business property is at risk for damage caused by such hazards as accidental structure fires, property crimes, and severe weather events.
- Number of federally declared disasters in MN since 1953: 60
- Most common reasons for declared disasters: Flood and Severe Storms
A severe storm or tornado can lead to expensive damage to your business property. Fortunately your commercial property insurance can cover you against these risks.
Flood damage is also a serious risk for many Coon Rapids businesses, particularly those in close proximity to the Mississippi River. However, floods are not typically covered by business insurance. If your business is at risk, your independent agent can help you supplement your commercial coverage with a flood insurance policy.
Business Interruption Insurance for Coon Rapids Businesses
Businesses in Coon Rapids and throughout the state of Minnesota contribute to the overall health of the nation’s economy.
- Gross domestic product (GDP) for the US: 2.2%
- Gross state product (GSP) for Minnesota: 2.8%
- The GSP is 0.6% greater than the GDP
Unfortunately, if your company cannot stay open for business, it cannot generate any revenue. Not only is this bad for the economy, it can also lead your business into bankruptcy. That is why, in times of catastrophe, business interruption insurance is crucial.
Business interruption insurance can provide your company with a continuation of income during the times that it is involuntarily forced to close for an extended period. This may be the case if a large structure fire burns down your office space, or if a tornado, like the F-4 twister that touched down near the city center in 1983, takes out your business.
When you have business interruption insurance, which typically lasts for up to one year, you can continue to pay monthly expenses and employee salaries until you are once again able to resume normal business operations. A local independent agent can help you review quotes for this important coverage.
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Coon Rapids Businesses Need Workers’ Compensation Insurance
Even when you take all the necessary precautions, employees are sometimes injured or become ill on the job. If that happens your business is responsible for covering their medical expenses and lost wages. Workers’ compensation insurance (commonly referred to as “workman’s comp"), is designed to cover these expenses.
The cost of a workers’ compensation policy is dependent on your company’s overall payroll and the danger inherent in the types of jobs your employees do. It costs more to cover employees who work on utility poles than to cover workers in an accounting firm.
Minnesota state law requires most businesses to carry workers’ compensation insurance. Exceptions are made for sole proprietors, most family farms, and a few other specific jobs. You have the option of purchasing your policy through a commercial provider or, if approved, your business can choose to self-insure. An independent insurance agent can explain more.
Employee Benefits for Small Businesses in Coon Rapids
Studies by human resource management groups have demonstrated that offering good employee benefits such as life insurance and healthcare coverage can help your business attract and retain a large pool of talented employees.
If your Coon Rapids-based business employs at least 50 full-time workers, you are required by law to provide them with subsidized health insurance. There are many different healthcare products available, and with the rising costs of health insurance, choosing the right coverage can be difficult.
- Average amount spent on healthcare coverage by MN businesses: $1,064,684
- Ranked 37th for highest medical insurance costs in the US
- Average annual cost of health care in MN: $5,505/person or $14,820/family
Your local independent agent can obtain a wide range of affordable policies for you to review together. That way, you can make an informed decision when purchasing this coverage for your employees.
Why Work with an Independent Insurance Agent?
Business owners in Coon Rapids may find it advantageous to get professional assistance when purchasing their business insurance coverage. Independent agents can help you identify the various exposures faced by your specific business, and can help find the best insurance policies to cover against those perils. Don’t risk having unrealized coverage gaps in your business insurance. Find an agent in or near Coon Rapids, and discover how easy it can be to build a comprehensive commercial insurance plan.