During previous years, there were 256,028 small businesses, employing 504,279 people, headquartered in Utah. Nearly 9,500 of these businesses were based in Orem, UT. Whether you have a business that employs several people, like Blendec, or you have an independent entrepreneurship with no employees, if you have a business based in this beautiful city, it is important that you protect your investment with an Orem commercial insurance policy. Consider this: Businesses in Utah collected $1,871,508 in business insurance claims in recent years.
Building a comprehensive Orem business insurance package can be complicated, so you may benefit from working with someone who is familiar with the various aspects of commercial insurance. Independent insurance agents in our network can help you identify and mitigate the hazards that are unique to your particular industry. These agents work with a number of highly rated insurance companies, so they can quickly and easily provide you with a selection of Orem business insurance quotes that are suitable to meet your company’s coverage needs.
General liability coverage is an important part of every commercial insurance package. It provides compensation for court costs, legal defense fees, and financial damages if a covered lawsuit is brought against your company. An agent can help you understand this coverage and identify any other types of liability insurance, such as commercial vehicle liability coverage, that you may want to include in your Orem commercial insurance portfolio. Your agent will likely talk to you about these coverages:
- Premises liability insurance: This is part of your general liability insurance. It covers third-party injuries, illnesses and property damage that may occur because of an accident on your business premises. According to a recent Travelers Business Risk Summary, 60 percent of small-business owners ranked medical cost inflation as their highest concern and over 30 percent said they felt the least prepared to handle this concern. This insurance covers the unexpected medical costs for which your business may be liable.
- Product liability insurance: This is also part of your general liability insurance. It covers your Orem-based business if the business is sued because of injuries, illnesses or property damage caused by products you produce, promote or sell. According to a national study, 71 percent of product liability awards by the courts amounted to $1 million or more. With this in mind, you see how this insurance coverage can prove quite valuable.
- Errors and omissions insurance: Also known as professional liability insurance, this covers those in professional positions if they are sued for mistakes, errors in judgment or other professional blunders that cause their clients financial damage, harm or aggravation. Medical malpractice insurance is an example of professional liability insurance. Considering that 53 percent of medical malpractice awards by the courts amounted to $1 million or more, it is easy to see how important this coverage can be to those in professional positions ranging from real estate brokers to party planners.
Business Interruption Insurance for Orem Small Businesses
- Recent Gross domestic product (GDP) for U.S.: 2.2%
- Recent Gross state product (GSP) for Utah: 3.8%
- The recent GSP was 1.6% higher than the recent GDP
Businesses in Utah make a significant contribution to the gross state product. However, if a covered disaster, such as an explosion or a tornado, forces you to shut down commercial operations for an extended time while repairs are made, your business will not be generating any revenue at all. In some cases, this has the potential to lead your company into commercial bankruptcy. Be sure to protect your company’s finances by including business interruption insurance as part of your Orem commercial insurance policy.
This insurance provides a continuation of income while your business is not operational due to damage caused by a covered event. With these funds, you can continue to pay salaries to key employees and meet your obligations to pay monthly expenses during the time that your business is inoperable. This coverage lasts until you are able to resume normal business operations, but in many cases, it expires after one year.
Property Insurance for Small Business in Orem
- Number of recorded natural disasters in Utah since 1953: 46
- Most common reason for disaster: Fires
- Only 61% of losses from natural disasters were covered; $9.7 billion from damage were not
Orem businesses have a relatively low risk of facing serious weather-related events, but disasters do occasionally happen. Whether caused by weather events like tornadoes; man-made events like accidental fire; or property crimes like theft and vandalism, if your business experiences significant property loss or damage, you want to know that you have suitable commercial property coverage to get compensation for these losses.
Commercial property insurance covers your business-owned property, such as signs, display cases, merchandise, computers, tools and machinery, and furniture. Because business coverage needs can vary from one company to the next, it is beneficial to work with an agent who can recommend supplemental property coverage, such as inland marine insurance, when appropriate.
Workers' Compensation for Orem Businesses
Workers' compensation insurance laws are dictated individually by the states. In Utah, all businesses with at least one employee must carry workman’s comp insurance. The only businesses that do not need to invest in this coverage are independent contractors and sole proprietors who do not hire employees. Workers' compensation insurance covers the medical costs and lost wages associated with workplace injuries and work-related illnesses, and it protects your business from related liability lawsuits.
Employee Coverages for Small Businesses in Orem
- Total recent spending on premiums in Utah: $282,462
- Ranked 15th for the highest premiums in the U.S.
- Annual cost of health care for small businesses in recent years: $5,096/person or $15,341/family
If your Orem business has at least 50 full-time employees, you are required by the Affordable Care Act’s “employer mandate” to provide them with subsidized health insurance coverage. Even if you have a very small business and are not required to offer health coverage, offering benefits such as life and health insurance can help you attract and retain talented employees and your business may qualify for a tax credit. If you are interested in learning more, be sure to talk to your agent about finding suitably priced options.
Cyber Crime Insurance for Small Business in Orem
- Number of identity theft complaints in Utah in recent years: 1,586
- Ranked 42nd highest for identity theft complaints in the U.S.
- Only 22% of businesses have a cyber/data breach response plan
Electronic data theft is on the rise, and the damage that results from a data breach is often quite expensive, as businesses can be responsible for compensating banks, credit card companies and individuals for resultant losses. However, because cyber crime insurance is a somewhat new insurance offering, many U.S. businesses are still without this important coverage.
Cyber crime insurance covers your business against the various lawsuits and damages that may result if criminals hack into your computer system and steal sensitive customer information, such as their personal and financial data. Talk to your agent to learn more about how adding cyber crime insurance to your Orem business insurance portfolio can be advantageous.
Find the Right Orem Commercial Insurance for Your Business
Every company has its own specific coverage needs, and there are commercial insurance policies that cater to each of the different business industries. Agents in our network can recommend the right kind of policy and can help you identify and eliminate your company’s exposures through the right coverage options. Because they are free to work with several different insurance companies, Our agents can help you find the policies that provide the best value for your money as you build your Orem business insurance coverage. There are many independent agents with offices in Utah, including in and near the city of Orem.
Find an agent near you to get more information and to start comparing Orem commercial insurance quotes.