Posted on May 16, 2014
Every business in Idaho needs commercial insurance. The specific coverage required depends on each individual company. Because there is no one size fits all insurance package, business owners must understand the types of coverage available and what will best meet their needs and budget. While workers compensation insurance is the only state mandated insurance coverage, many companies need to protect their property, employees and savings by finding just the right insurance program that fits their business.
Idaho Liability Coverage
Idaho businesses work hard to provide products and services in their communities, but sometimes accidents happen when customers visit a place of business, or an employee accidentally damages something at a client's location. When these events happen, general liability insurance takes care of compensating those involved in an injury or replacing damaged property.
Within liability insurance there are many additional areas of coverage that some companies will need to add to their standard general liability package. Employment practices liability protects employers when an employee files a claim for harassment, discrimination or wrongful termination. Companies that design or manufacture products need product liability insurance to protect them when consumers file claims for defects or flaws. Professionals can obtain professional liability insurance, also known as errors and omissions, to cover lawsuits made by those who claim negligence or errors. An umbrella policy provides additional coverage amounts over and above general liability limits so that businesses will have extra insurance amounts that might be needed should a claim be filed. Umbrellas are often used by high risk companies or those with large assets that need protection.
Workers Compensation Coverage
Workers' compensation insurance is required in Idaho to cover employees who are injured or become ill while on the job. Any employer with one or more employees must obtain a workers' comp policy before the first employee is hired and then maintain that coverage for as long as the company has employees.
This coverage may be purchased from private insurance companies, the Idaho State Insurance Fund, assigned risk pool, or self-insurance.
Some exemptions to the workers compensation insurance mandate include domestic service workers, sole proprietors, partnerships and corporate officers with at least 10% company stock, dusting plane pilots, and volunteer ski patrol.
Failure to carry workers' compensation insurance in Idaho include personal liability for all costs associated with employee's claim, penalty of up to 10% of the medical and wage benefits as well as attorney fees and $2.00 per employee per day penalty or $25 a day, whichever is greater.
Commercial property insurance is necessary for business owners today. Besides covering commercial buildings, it also provides additional coverage for personal property contained within the building. Replacing furniture, equipment, computers and inventory can be a costly endeavor should damage occur, and so most companies will want to make sure to add this coverage to their insurance packages.
Another additional coverage that is worth adding to commercial property policies is business income or interruption, which reimburses companies when they must be closed for repairs due to a covered claim such as fire.
Commercial Flood Insurance
Because most commercial property insurance policies specifically exclude coverage for floods, business owners must purchase a separate policy for protection against flood damage. In most areas, flood insurance will only be available where local governments have flood plain regulations in place. For high risk flood areas, the National Flood Insurance program provides flood damage coverage for commercial buildings and the contents inside.
Additional Information on Idaho Insurance