Lorain, OH, is home to more than 3,500 businesses representing a wide range of industries. While this city’s economy is still based largely on manufacturing, Lorain has seen a marked loss of industrial jobs over the last decade. If you are a business owner in this rust belt city, you may benefit from protecting your company with a suitable business insurance plan.
Choosing the right products to include in your business insurance policy package can be difficult, but you do not need to make these decisions alone. Local independent insurance agents can help by identifying your company’s specific risks and advising you about the types of policies that can cover against them. Find an insurance agent near you to learn more.
Why Is Liability Insurance Important for Businesses in Lorain, Ohio?
Liability insurance is arguably one of the most important parts of every business insurance policy package. It is designed to cover court costs, legal fees, damages, and other related expenses if your business is sued for a covered event.
All business insurance policies include, at the very least, commercial general liability insurance (CGL). This standard coverage has a few coverage components:
- Premises liability insurance: This covers third-party injuries, illnesses, and property damage that occurs due to incidents on your business property.
- Product liability insurance: This covers third-party injuries, illnesses, and property damage that is caused by defects or design flaws in products your business produces, sells, or promotes.
- Advertising liability insurance: This covers against accusations of copyright infringement, deceptive pricing, and false advertising.
CGL alone cannot cover against all the potential liability risks many businesses face. An independent insurance agent can help you identify your company’s liability exposures and can recommend the appropriate policies to cover against them.
Some of the commercial liability insurance products you may want to consider for your Lorain business include:
- Commercial vehicle liability insurance: This is mandatory if your business has company-owned vehicles. It can protect against the increased liability costs your business faces if one of your drivers causes an accident.
- Employment practices liability insurance (EPLI): This is a good idea for any business that has employees. It can cover against lawsuits related to accusations of perceived illegal employment practices such as harassment, discrimination, retaliation, and wrongful termination.
- Pollution liability insurance: This is important for businesses that sell, use, or produce toxic substances. It can cover cleanup costs and damage if a disaster like a fire or a windstorm leads to these substances getting into the environment and polluting the ground, water, or air.
- Cyber liability insurance: This is highly recommended for businesses that store important customer information electronically in databases. It can cover your business’s financial obligations and liabilities if hackers access your company’s computer systems and steal information such as your customer’s financial or personal details.
You can learn more about these and many other commercial liability coverage options by consulting an independent insurance agent in Lorain.
Can Lorain Business Insurance Cover All Your Business Assets?
All business insurance policies include commercial property coverage. This insurance can compensate your business for loss or damage to property like office furniture, outdoor signs, computers, tools, supplies, merchandise, and inventory if the damage is caused by a covered event.
In Lorain, businesses are most likely to experience property loss or damage due to accidental fires, theft, and severe weather events like storms, gusty winds, hail, tornadoes, freezing temperatures, and heavy snows, which are common with the lake effect precipitation in this city. Fortunately, all of these hazards are covered by commercial property insurance.
Sometimes, specialized commercial property insurance policies are necessary in order for your company’s assets to be fully covered. Your insurance agent may recommend adding products such as:
- Inland marine insurance: This is important for companies that own expensive portable property that is frequently moved around or stored off-site. It is designed to cover this property while it is being transported or is temporarily away from your place of business, such as at a job site or in a warehouse.
- Bailees insurance: This is important for companies that perform alteration, maintenance, or repair work on expensive items not owned by your business. It is designed to cover loss or damage to your customers’ property while it is in your business’s custody, care, or control.
- Commercial flood insurance: This is necessary for any business that has even a remote risk of experiencing flood damage since this very expensive hazard is not covered by commercial property insurance. In Lorain, businesses near waterways like the Black River and Martin Run are most at risk, but when heavy rains fall, flood damage can happen anywhere in this city.
An independent insurance agent can help you be sure that all of your business assets are appropriately covered, and that your coverage limits are high enough to enable you to rebuild, repair, or replace, as necessary.
How Can Business Interruption Insurance Help Lorain Businesses?
Major disasters like structure fires can do more than just damage your commercial property. They also have the potential to force your business to remain closed for an extended time while repairs are made.
This is particularly true when widespread damages hinder repair efforts, such as following a devastating tornado. In Lorain, the tornado risk is 2% higher than the national average.
Disasters in Ohio
- Number of federally declared disasters in OH since 1953: 59
- Most common reasons for declared disasters: Severe storms, floods, and tornadoes
- Average number of tornadoes in OH per year: 19.2
A closure that lasts for weeks, or even months, can be financially devastating, especially for a small company that doesn’t have a lot to fall back on. Business interruption insurance provides a solution to this problem.
Business interruption insurance is designed to provide your company with a continuation of income when a covered event leads to a forced long-term closure. That way, your business can afford to pay regular monthly expenses such as utility payments, loan installments, and employee salaries even while unable to generate revenue.
Talk to a local independent insurance agent for help determining whether business interruption insurance is a good fit for your company.
Do Lorain Businesses Need Workers' Compensation Insurance?
Workers' compensation insurance is designed to cover the cost of medical treatment, disability pay, and other expenses related to workplace injuries and occupational illnesses. In the event of a fatal work-related injury, this insurance can also provide long-term benefits to surviving family members
In the state of Ohio, all businesses with at least one employee are required by state law to have workers’ compensation insurance. There are a few exceptions. For example, coverage is optional for:
- Sole proprietors or partners
- LLCs acting as sole proprietors or partnerships
- Family farm corporate officers
- Individuals incorporated as a corporation, provided they have no employees
The cost of workers’ compensation is based mainly on the types of jobs your employees do. The higher the risk that your workers will suffer significant injuries, the higher the price for coverage will be.
In Ohio, which is a monopolistic state, coverage can only be purchase through the state-administered fund. Because private insurers are unable to compete in this state, a local independent agent cannot shop around to find you the most competitive rates.
What about Insurance Products for Employee Benefits Packages?
While it is true that healthcare coverage is expensive, subsidizing it for your employees can have cost-saving benefits for your business.
Studies conducted by human resource professionals have demonstrated that when businesses offer competitive employee benefits like paid vacation time, sick time, life insurance, and health insurance, they find it easier to attract and retain ideal employees.
- Approximate annual amount spent on healthcare coverage by OH businesses: $2 billion
- Average annual cost of health care in OH: $5,886/person or $15,955/family
There are many different life and health insurance products available for you to choose from. This can make it difficult to determine which policies are the best to include in your employee benefits package.
A local independent insurance agent can explain the pros and cons of each of your various options so that you are able to make an informed decision.
Why Work with an Independent Insurance Agent in Lorain, OH?
Every business has specific risks and exposures, and these can vary from one company to the next. That is why insurance providers enable you to fully customize your commercial insurance coverage. An independent agent in Lorain can offer you guidance and advice and can shop around to help you find the best and most affordable insurance policies to cover your company.
Contact an independent insurance agent with an office near you to learn more. You will soon discover how easy it can be to build a comprehensive, yet affordable, business insurance policy package.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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