Business insurance is a requirement to protect your business from substantial financial damage, specifically when you own commercial or retail property. What business insurance options are available for your business? Would you like to add property coverage to your business insurance policy? If you want to know the answer to either of those questions, then stick around.
In Utah in 2019, there were over 287,000 small businesses employing over 570,000 people, and occasionally business insurance claims do occur. In fact, in 2019, the total amount of business claims paid out was over $3 million, making business insurance vital to the protection of your business.
Putting together a comprehensive business insurance policy can present some difficulties, but you are not alone. Independent insurance agents in Clearfield, UT, can help by identifying your business’s specific risks and suggesting suitable policies to cover them.
How Does Business Property Insurance Protect My Clearfield, UT, Business?
Being the main component of your business owners policy, business property insurance is a necessity. It protects your building, its contents, and any outdoor features, such as signs and fences. Additionally, business property insurance protects your business from other damage from liability, employee injuries, and theft.
If your business happens to suffer significant property damage and you don’t have adequate business insurance, you might find it difficult to recover from heavy financial losses. So, make sure you purchase the right amount of business insurance to protect your business.
Because every business has its own individual risks, every business requires different business coverage options. Therefore, it is important to identify the specific risks your business faces and find ways to reduce them.
Does my Clearfield, UT, Business Really Need Liability Insurance?
An important part of your business insurance policy is business liability insurance and is meant to cover your business’s court costs, legal fees, and financial damage in case of a complaint. However, even if you win in court, the legal fees can be expensive.
It is also very important that you buy the right kinds of coverage for your business liability insurance. Below are some of the business liability options available to your business:
- Product liability insurance: This option covers damage occurring to a third party caused by faults in goods your business produces, sells, or promotes.
- Commercial vehicle liability insurance: This coverage is required if your business owns and operates automobiles. It covers your business's added liability risks in an employee who causes an accident that results in damage to a third party.
- Pollution liability insurance: This optional insurance covers the cleanup costs and losses if your business is liable for an accident leading to the pollution of the air, ground, or water.
- Premises liability insurance: This option covers damage occurring to a third party due to an accident on your business property.
- Cyber liability insurance: This option covers financial losses and liabilities if a hacker gains access to your computer systems and take sensitive customer data.
- Employment practices liability insurance: This option covers claims related to claims of unlawful employment practices such as discrimination, breach of contract, harassment, and wrongful termination.
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What Other Business Insurance Options are Offered for My Clearfield, UT, Business Property?
You are more at risk for flooding if your business is situated close to a waterway, specifically, the Great Salt Lake, so business flood insurance would be a really good idea.
In Clearfield, UT, your business property is most likely to suffer property loss or damage due to the following threats:
- Wildfires and residential fires
- Flooding and water damage
- Severe storms and lightning damage
- Wind damage
- Burglary and other property crimes
Practically all the above threats are covered by your business property insurance and is a basic part of all business insurance policies. It is meant to include your business-owned property and covers your furniture, computers, inventory, and other merchandise.
There may be times when you find it necessary to add specific business insurance options to your business insurance policy. Your independent insurance agent may recommend adding some of the following insurance options:
- Bailee's insurance: This option covers third-party property when in your business’s care, such as when you are doing repairs or upkeep on it.
- Flood insurance: Note that business property insurance does not cover flood damage, even if a covered storm does damage to your business property.
- Equipment breakdown insurance: This option covers repairs, or the replacement of damaged equipment and any losses related to equipment breakdowns.
- Inland marine insurance: This option covers your movable business property during transfers or if you store it away from your place of business.
You will definitely want to make sure your business insurance options are sufficient to allow you to rebuild, repair, or replace if needed.
Why Should I Buy Business Interruption Insurance in Clearfield, UT?
When a fire occurs and the damage is extensive, your business may have to close for an extended period, while repairs are being made. Below is data on past declared disasters in Utah:
- Number of federally declared disasters in UT since 1953: 46
- Most common reasons for declared disasters: fire/29
- Average number of tornadoes in UT per year: 3
If your business does have to close for an extended period, it can be financially devastating, especially if you own a small business.
Business interruption insurance provides your business with a revenue extension until your business can return to regularly scheduled activities. This allows you to pay normal monthly payments such as employee wages, utility bills, and loan payments when your business is not able to generate revenue.
Does My Clearfield, UT, Business Need to Carry Workers' Compensation Insurance?
As a Utah business owner, you are legally responsible for providing your employees with a safe working environment to perform their work duties. However, even when all precautions are taken, employees do get hurt or become ill on the job. Also, when you own a business in Utah, you must also cover your employees’ financial losses if they become ill or hurt on the job.
Insurance companies determine their workers' compensation rates on the kinds of duties your employees do and the probability they will get hurt or ill on the job. As a result, it is particularly important to be suitably insured with workers' compensation insurance.
What about Insurance Options for Employee Benefit Packages?
Healthcare coverage rates can be high-priced, and they tend to fluctuate depending on the options you choose. However, if your business offers subsidized health coverage to your employees, it can positively influence your business. Human resource personnel have examined and found that businesses offering a good employee benefits package have much better odds of attracting and keeping good employees.
There are several health, car, and life insurance options available for you and your employees to choose from, so it can be tough to figure out the right options for your business. This is where expert advice from an independent insurance agent can come in very useful.
Why Work with an Independent Insurance Agent in Clearfield, UT?
In the insurance market, insurance companies know that every business has its own individuality and its own specific risks. Knowing this, they allow business owners to customize their business insurance options.
A TrustedChoice.com independent insurance agent can go over the advantages and disadvantages of each business insurance option so you can make an informed decision.
Find an independent insurance agent with an office in or near Clearfield, UT, to find out more. Find out how easy it is to build a comprehensive business insurance policy.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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