More than 2,000 small businesses can be found in the city of Mitchell, SD. These firms range from sole proprietors with no employees to larger companies that manufacture agricultural equipment. Whatever type of business you operate, if it fills a need in this vibrant community, it has the opportunity to thrive. As an entrepreneur in Mitchell, you will want to be sure to protect your investment with a comprehensive business insurance plan. Contact a local independent insurance agent for recommendations about the appropriate commercial insurance solutions to protect against each of your company’s exposures.
Liability Insurance Shields Businesses in Mitchell
Liability lawsuits against businesses frequently end in judgments of $1 million or more. Even if the courts rule in your favor, the cost of legal defense and other expenses related to these lawsuits can be extremely expensive. That is why liability insurance is a crucial part of every business insurance policy. All business insurance policies include commercial general liability insurance (CGL). It is designed to cover some of the most common liability risks businesses face. It has two main coverage components:
- Premises liability insurance: Covers third-party injuries, illnesses and damages that occur on your business property.
- Product liability insurance: Covers third-party injuries, illnesses, and damage caused by products your company produces, sells or promotes.
Depending on the type of business you own, you may need to purchase additional insurance products in order to be fully covered against all of your liability exposures. Some of the many other commercial liability products that are available to you include:
- Liquor liability insurance: Covers businesses that sell, serve or otherwise furnish alcoholic beverages in the event that an intoxicated patron causes damage or injury to others.
- Pollution liability insurance: Covers damage and clean-up costs if an accident results in toxic substances used by your business polluting the environment.
- Employment practices liability insurance: Covers your business against accusations of discrimination, harassment, wrongful termination, and other illegal business practices.
- Professional liability insurance: Covers individuals in professional positions if they are sued for damage caused by mistakes such as errors in judgment or professional negligence.
- Cyber liability insurance: Covers businesses that track or store sensitive customer information in the event that this data is accessed by hackers and those affected sustain financial or personal damage.
Your independent insurance agent can help you determine whether these or any other commercial liability products are appropriate for your Mitchell business.
Property Insurance for Businesses in Mitchell, SD
Commercial property insurance is designed to cover your business’s property against loss or damage caused by property crimes, natural disasters, fires, and other risks. This coverage is included in all business insurance policies. You just need to be sure to buy it in sufficient amounts to fully cover your company’s assets. In some cases, certain business property needs to be insured by specialized policies, such as:
- Inland marine insurance: This covers goods and materials while they are in transit.
- Boiler & machinery insurance: This covers the cost to repair or replace broken-down equipment and also covers losses incurred by your business as a result of the downtime.
- Contractors equipment insurance: This covers loss or damage of equipment located at job sites
Your independent insurance agent will be able to offer you trustworthy advice about which policies make sense for your particular business. That way, you can be sure that all of your company’s assets are appropriately protected. Also, if your Mitchell business is at risk for flash flooding, you will need to purchase a separate commercial flood insurance policy through the NFIP. That way, you can be sure that your business's property is properly covered against flood damage. Your local independent insurance agent can explain more and help you secure an affordable policy.
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Business Interruption Insurance Protects Mitchell’s Businesses
In 1962, an F3 tornado touched down just 1.3 miles from the Mitchell city center. It caused millions of dollars in damage to area homes and businesses. How would your business be able to handle the destruction if a similar twister struck today? Natural disasters can be very destructive, not just to your business-owned property, but also to your company’s bottom line. If your business is forced to close down for an extended period so that repairs can be made, the loss of income can be financially devastating. Business interruption insurance was created to prevent this problem.
Business interruption insurance is designed to provide a continuation of income when your company suffers a forced extended closure. This insurance, which is usually limited to one year, enables you to continue to pay employee salaries and monthly expenses even while no income is being generated. Talk to your local insurance agent to learn more.
Employers in Mitchell, SD Need Workers' Compensation Insurance
Even with OSHA-approved safety regulations in place, workers are sometimes injured on the job. Whether your employees suffer a physical injury or become ill from exposure to a toxic substance, as their employer, you are responsible for covering the cost of their medical treatment and lost income. Workers’ compensation insurance is designed to cover these expenses. In South Dakota, nearly all employers are required by law to carry workers’ compensation insurance. There are a few exceptions, such as for sole proprietors, real estate agents, and certain domestic workers, but for the most part, if you have employees, you need to have this insurance.
The cost for workers’ compensation insurance is based on your company’s overall payroll and the probability of significant employee injuries based on the types of jobs your workers do. It would cost more to cover a worker in one of Mitchell’s manufacturing plants than to cover a cashier at a clothing store. Your local insurance agent can help you secure a competitively priced policy through an insurance company that specializes in covering businesses like yours.
Employee Benefits for Businesses in Mitchell
Human resources professionals have proven that there are advantages to offering your workers attractive benefits packages. Providing perks such as paid vacation and sick time, health insurance and life insurance can help you attract and retain a talented pool of employees. Finding the best insurance products to offer your employees, however, can be a challenge. This is particularly true when it comes to healthcare coverage, which can be expensive.
- Average amount spent on healthcare coverage by SD businesses: $94,000
- Ranked #1 for most expensive medical insurance costs in the US
- Average annual cost of health care in SD: $6,331/person or $15,780/family
There are several different life and health insurance policy types and options available for you to choose from. An independent agent can explain the pros and cons of your various options so that you are able to make an informed decision about which is the best for your business. Talk to your local insurance agent to learn more.
Let an Independent Agent in Mitchell Help You Find the Best Coverage
There are several different business insurance products you can choose from when you are building a commercial policy portfolio for your Mitchell business. This can make shopping for coverage confusing, especially if you are unfamiliar with the ins and outs of your various insurance options. Independent insurance agents in Mitchell can help. These insurance professionals can help you find appropriate policies at competitive rates.
Find an insurance agent in or near Mitchell to learn more, and you can start comparing customized business insurance quotes in no time.
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