According to the latest census report, there are currently more than 1,000 businesses of varying size and scope operating in the small city of Vermillion, SD. The top industries in this city are educational services, accommodation and food services, and health care. But any business that serves the needs of the community has the potential to thrive here.
If you own a business in Vermillion, you will want to be sure to protect your investment with a comprehensive business insurance plan. A local independent agent can help you identify your firm’s various exposures and can recommend the right commercial insurance products to cover against them. Contact an insurance agent near you to learn more.
Why Do Businesses in Vermillion Need Liability Insurance?
Let’s face it, we live in a litigious society. If your business is on the wrong end of a liability lawsuit, having the right liability insurance in place is crucial. Business liability insurance is designed to absorb expenses like court costs, legal defense fees, and damages if your business is sued for a covered event.
All business insurance policies include commercial general liability insurance (CGL). CGL is designed to cover third-party injuries, illnesses, or damages whether they are caused by an accident on your business property (premises liability insurance) or are due to a defect in a product your company produces, sells, or promotes (product liability insurance).
Most businesses have liability risks that go beyond what CGL insurance can cover. Your insurance agent can help you identify your business’s other liability exposures and can recommend the right policies to cover against them. Examples of some of the many commercial liability insurance policies you can choose from include:
- Cyber liability insurance: This is designed to cover your business if hackers break into its computer system and access sensitive customer data like credit card numbers and personal information which could be used to commit identity theft, extortion, and fraud.
- Employment practices liability insurance: This is designed to cover your business if a current or former employee makes an accusation of discrimination, harassment, wrongful termination, or any other illegal business practice.
- Environmental liability insurance: This is designed to cover cleanup costs and damages if your company accidentally pollutes the land, water, or air.
- Professional liability insurance: This is designed to cover individuals in professional positions if errors against a third-party incur damages, hardships, or injuries caused by errors in judgement or other professional mistakes.
Talk to your insurance agent to learn more about these and any other liability products that may be right for your Vermillion business.
What Are the Property Damage Risks in Vermillion, SD?
Every business insurance policy also includes commercial property insurance. This is designed cover loss or damage to your company’s assets including such things as merchandise, furniture, computers, tools, outdoor signs, and more.
Businesses in Vermillion are most likely to experience loss or damage due to hazards such as accidental fires, property crimes, windstorms, hail, heavy snows, and freezing temperatures. Your commercial property insurance is designed to cover against all of these hazards.
One thing that is not covered, however, is flood damage. If your business is located near the Vermillion River or is otherwise at risk for flood damage, your local insurance agent can help you supplement your business insurance policy with commercial flood insurance through the NFIP. Talk to your agent to learn more.
How Does Business Interruption Insurance Help Companies in Vermillion?
Occasionally, businesses in Vermillion are impacted by a catastrophic event like an accidental fire or a tornado. In fact, the risk of tornado damage in this city is 89 percent higher than the national average. In 1986, for example, an F4 twister touched down just 7.3 miles from the Vermillion city center causing more than $50 million in damages.
Damage to your business-owned property isn’t the only expensive risk you face during a catastrophic event like a tornado. Major damage to your business could potentially force it to remain closed for weeks, or even months, while repairs are made. Without an ongoing stream of revenue, many businesses cannot handle this financially and end up going bankrupt.
Business interruption insurance protects against this risk by providing a continuation of income during the times that your company is forced to temporarily close down because of damage caused by a covered event. This insurance provides the funds your company needs to pay monthly bills, loan installments, and salaries until you can get back to normal operations.
Talk to a local independent insurance agent to learn more about business interruption insurance.
Are Employers in Vermillion Required to Carry Workers’ Compensation Insurance?
Workers’ compensation insurance is designed to cover employees’ medical treatments, lost wages, and other related expenses if they are hurt while working or are sickened by exposure to toxic substances at the workplace. This insurance can also pay out survivor benefits to family members in the sad event that a workplace injury is fatal.
All employers in South Dakota are required by law to carry workers’ compensation insurance. There are a few exceptions, however. For example, it is not necessary to buy coverage for:
- Sole proprietors or partners
- Domestic servants who work less than 20 hours per week
- Farm and agricultural laborers
- Independent contractors including real estate agents
Costs for workers’ compensation coverage are based your company’s overall payroll and the likelihood that your employees will sustain serious injuries based on the types of jobs they do. An independent insurance agent can help you compare rates from insurance companies that specialize is covering businesses in your industry.
Are You Looking for Insurance to Include in Employee Benefits Packages?
Some businesses offer their employees great benefits packages that include health insurance, life insurance, paid vacation, sick time, and other perks. If you are looking to build a benefits package for your workers, you may need some help finding affordable insurance products to include it in it.
- Average amount spent on healthcare coverage by NY businesses: $1,568,586
- Ranked 3rd for highest medical insurance costs in the US
- Average annual cost of health care in NY: $6.086/person or $17,530/family
Yes, health insurance is expensive, but providing it to your employees can actually save your business money. Studies by human resource experts have shown that workers who have health insurance tend to use fewer sick days. Other studies have demonstrated that offering a great benefits package can help your company attract and retain good employees.
When it comes to health and life insurance products, there are many different policy types and options available to you. It may therefore be beneficial to have the guidance of an experienced independent insurance professional when you are making a selection.
Why Work with One of Vermillion’s Independent Insurance Agents?
There is no such thing as a one-size-fits-all business insurance policy. Insurance companies therefore offer a wide variety of products and options so that business owners can fully customize their insurance portfolios. Independent insurance agents can help you choose the right policies and options to meet your company’s specific coverage needs.
Because they do not work for a particular insurance company, independent agents can shop around for the best business insurance policies at the most competitive prices. Find an insurance agent in or near Vermillion to get started.