Lexington Business Insurance

Your Complete Guide to Lexington, NE Business Insurance

Find the right business insurance policy for you.

Business owners going through insurance paperwork together in their coffee shop

The city of Lexington is home to more than 600 businesses of varying size and scope. While manufacturing and retail trade companies are most common here, any business that meets the needs of the community has the opportunity to thrive. If you are among Lexington’s proud business-owners, you will want to be sure to protect your investment with business insurance.

Building a comprehensive commercial insurance plan can be complicated for those who are not familiar with the many options and insurance products available to businesses. Independent Insurance Agents in Lexington can eliminate the guesswork and can help you obtain the coverage you need at a competitive price. Find an insurance agent near you to learn more.

Why Do Businesses in Lexington Need Liability Coverage?

It is not uncommon for liability lawsuits against US businesses to result in judgments exceeding $1 million. That is why all business insurance policies include commercial general liability insurance (CGL). It is designed to cover the costs associated with many of the liability risks your business is likely to face. The two main coverage components of CGL are:

  • Premises liability insurance: This can cover third-party injuries, illnesses, and property damage when they occur as a result of an accident on your business premises. 
  • Product liability insurance:  This can cover third-party injuries, illnesses, or property damage when they are caused by products your company produces, sells or promotes.

CGL does not cover every liability risk. Frequently, other types of liability coverage may be necessary in order for your business to be fully covered against all of its liability exposures. Some of the many other available liability products that you may want to consider include:

  • Cyber liability insurance: Covers your business against the financial damage it may face if hackers breakthrough your company’s firewalls and access sensitive customer data that has been stored electronically.
  • Employment practices liability insurance (EPLI): Covers the cost of defending your company if a current or former employee makes an accusation of illegal business practices such as harassment, discrimination, or wrongful termination.
  • Pollution liability insurance: Covers the cost of clean-up and restitution if toxic substances used or produced by your company pollute the environment—including the land, water, or air—due to an accident at your facility.
  • Commercial vehicle liability insurance: Covers your company against its excessive liability risks in the event that one of your workers causes a collision while on the road in a company car or driving their own vehicle to do a job for your business.
  • Professional liability insurance:  Covers individuals in professional positions, such as financial advisers and wedding planners, if they are sued for damages or grievances that can be attributed to errors in judgment or other professional mistakes.

An independent insurance agent can help you determine which of the many offered commercial liability products are right for your particular business.

What Kinds of Damage Does Commercial Property Insurance Cover?

In addition to liability coverage, all business insurance policies also include property coverage.  Commercial property insurance is designed to cover your business-owned property in the event that it is lost or damaged due to a covered event. Covered assets include tools and machinery, outdoor signs, display cases, office furniture, computers, supplies, and more. Businesses in Lexington are most at risk for damage caused by hazards like structure fires, heavy snows, freezing temperatures, and hailTornadoes also pose a risk, particularly for businesses located just outside the city.

Another serious risk to businesses in the Lexington area is flooding, particularly after a major storm like the “bomb cyclone” that struck recently. Unfortunately, flood damage is not covered by business insurance. For that, you will also need to purchase a commercial flood insurance policy through the National Flood Insurance Program (NFIP). An independent insurance agent can help.

Why Is Business Interruption Insurance Important for Lexington Businesses?

The state of Nebraska sees its fair share of natural disasters.

  • Number of federally declared disasters in Nebraska since 1953: 60
  • Most common reasons for disasters in the state:  Severe Storms
  • Average number of tornadoes per year in Nebraska: 54.6
  • Average amount paid in business insurance claims per year in NE:  $1.35 billion

In addition to natural disasters, man-made disasters, like the recent fire that significantly damaged the Darling International livestock rendering plant, have the potential to force your business to remain closed for a long time while repairs are made. Would your business be able to withstand the financial hit if it were forced to remain closed for an extended period in the wake of a disaster? For most small businesses, a loss of income of this magnitude could potentially lead to bankruptcy. That is why, in times of crisis, it pays to have business interruption insurance.

Business interruption insurance is designed to provide a continuation of income if your business is forced to remain closed for an extended period due to excessive damage caused by a covered event. This insurance enables you to keep paying monthly expenses and employee salaries until your company can resume its normal business operations.

Do All Lexington Businesses Need Workers’ Compensation Insurance?

In Nebraska, all employers are required to carry workers’ compensation insurance, with a few exceptions. It is not necessary for employers to cover sole proprietors, domestic servants, railroad employees, or workers in certain agricultural operations.  If in doubt, consult your local independent insurance agent. Workers’ compensation insurance protects businesses and employees alike by covering the cost of medical treatment and lost wages if an employee is injured or becomes ill on the job. In the unfortunate event that a workplace injury is fatal, this insurance can also provide death benefits to the deceased employee’s surviving family members.

The cost of workers’ compensation insurance for your business will be dependent on the types of jobs your employees do and the amount you spend on payroll. It would cost far more for you to insure employees with a high risk of injury, such as workers in a rendering plant, than it would cover employees with a low risk, like waitstaff at a restaurant. Your local insurance agent can help you purchase workers' compensation coverage through a commercial provider that specializes in covering businesses in your industry. Or, if approved, your company may choose to self-insure. 

What about Insurance Products for Employee Benefits Packages?

Many studies conducted by human resources professionals have demonstrated that offering your employees benefits such as life insurance and health insurance can help your business attract and retain good workers. Unfortunately, rising health insurance costs often make shopping for this coverage daunting for many small business owners. The good news is that independent insurance agents in Lexington can help.

  • Average amount spent on healthcare coverage by NE businesses: $305,001
  • Ranked 16th for highest medical insurance costs in the US
  • Average annual cost of health care in NE: $5,431/person or $14,616/family

These local agents can explain the pros and cons of the many health and life insurance policy types and options that are available to you. That way, you can make an informed choice when deciding which policies are the best to include in your employee benefits package.

Why Work with an Independent Insurance Agent in Lexington, NE?

Business owners in Lexington can obtain the best commercial insurance coverage when they work with local independent insurance agents. These experienced insurance professionals can help you identify the various risks your business faces, and can then help you find the best insurance products to cover against those exposures.

Contact an insurance agent in or near Lexington to discover how easy it can be to build a comprehensive, yet affordable, business insurance policy.

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https://www.census.gov/quickfacts
https://www.fema.gov/disasters
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https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/alter-benefits-attract-retain.aspx
https://www.business.org/hr/benefits/top-reasons-to-offer-employee-benefits/
http://www.city-data.com