Posted on May 16, 2014
Commercial insurance coverage may be one of the most important decisions Delaware businesses will make with regard to their financial security. Having the appropriate business insurance with the right amount of coverage protects companies from the potential risk of injuries, accidents or property damage that could make for trying times and even causing the company to fail if uninsured without any financial resources to cover lawsuits or claims.
Spending time learning more about business insurance options that will provide the best protection can easily make the difference in providing the peace of mind that business owners need so they can move on and do what they do best - running their business.
Delaware Liability Coverage
Most Delaware business owners choose general liability insurance in order to protect themselves from lawsuits. When a customer, employee or visitor is injured on business premises, it is possible they may sue. If they become ill after eating or drinking a company product, they may also decide to file a lawsuit. Because businesses cannot anticipate and plan for every possible scenario, preparing for any contingency means obtaining liability insurance. This broad coverage will take care of medical expenses, legal fees, judgments and settlements should a company be held financially responsible for an injured party.
Workers Compensation Coverage
When an employee is injured or becomes ill while on the job, workers compensation insurance pays benefits for medical expenses, death, temporary and permanent disability. Delaware mandates that every company with one or more employees must carry workers comp insurance. Only farm workers are exempt from the workers comp requirement; however, they may choose to opt into coverage if they desire.
With Delaware's location along the Atlantic coast, the chances of frequent high winds and tropical storms make for a rough combination sure to eventually cause some type of property damage. Commercial property insurance is a must to protect not only a company's physical location but everything inside the business as well. Property insurance comes in two forms: specific peril and all-risk. Specific peril policies will cover only losses identified in the policy. Each separate peril is listed and may typically include such events as fire, theft or explosions. An all-risk policy provides more comprehensive coverage for business owners. It will cover a number of different disasters and names each one within the policy. Many policies will include events such as wind or hail, but often they may include a deductible different than the standard deductible for other perils.
When a business experiences a covered event such as a fire, they will usually need to close the business while repairs are being performed. Bills must be paid despite the temporary closure, and this is where business interruption insurance can help. It will reimburse business owners for fixed expenses while the company must be closed. This promises businesses the ability to pay bills and stay in business until the repairs are complete.
Commercial Flood Insurance
The threat of flooding from hurricanes, heavy rains or winds is an annual risk in Delaware. Unfortunately, many business owners are not aware that business property insurance will not coverage damage caused by flooding. They must purchase a separate flood policy from the National Flood Insurance Program (NFIP) to properly protect themselves from flood damage. The coverage is available in limits up to $500,000 for buildings and $500,000 for contents. The property or flood insurance of landlords that lease space to businesses will not cover their tenants. Tenants must purchase their own contents only coverage to be fully protected. Because there is a 30 day waiting period until policies become effective, business owners need to apply and obtain coverage well in advance.
Delaware experiences unique weather related events. Because of their location right on the Atlantic, the threat of hurricanes, cyclones and wind damage is a reality that business owners must deal with in preparing their asset protection plans. While some commercial property insurance policies may cover some storm damage, there are many others that do not provide any coverage whatsoever for hurricanes or tornadoes. Some companies may simply need to do add a rider to their existing insurance policies to be covered. However, others may need to have a completely new and separate policy issued. Another important thing to keep in mind is to review current policies and make sure that the policy limits are enough should a catastrophic storm completely destroy the business property. Business owners need enough insurance to cover replacing the building, restocking inventory, as well as purchasing new equipment, furniture and supplies.
Additional Information on Delaware Insurance