Posted on May 16, 2014
Nebraska business owners are centrally located in the heartland, and according to the Bureau of Labor Statistics enjoy one of the lower unemployment rates in the U.S. (4.1% as of December 2011). Part of building a successful business means taking steps to protect that investment from possible risks of lawsuits and injuries to which a company may be deemed responsible.
Commercial insurance provides the added protection that companies need so they can go about doing what they do best - growing their business without needing to worry about potential injuries or property damage. In the state of Nebraska, the only commercial insurance required is workers' compensation insurance, but business owners need to make sure that other appropriate policies are in place to provide the greatest amount of protection possible. Below you will find various types of coverage available in Nebraska that will help in business planning and preparedness.
Nebraska Liability Coverage
General liability insurance policies financially protect your business from pretty much any possible risk that might occur. If someone is hurt while visiting your location, a liability policy will pay legal defense and investigative costs, lost income during court appearance as well as judgments or settlements from lawsuits. The different issues that general liability can cover include bodily injury, property damage, products or service completed by company, contractual liabilities and advertising injuries to name a few. Employees are not covered under liability insurance unless they hurt a customer or damage customer's property in some way.
Workers Compensation Coverage
Workers compensation insurance is required by the state of Nebraska for every employer with one or more employees. The only exceptions to the requirement to carry workers compensation is for federal & railroad employees, volunteers, independent contractors, domestic servants, the self-employed, corporate officers with 25 percent stock or those who receive less than $1,000 per year in compensation.
Nebraska workers compensation insurance will provide medical and wage benefits to employees who contract an illness or are injured while on the job. Penalties for not complying with mandatory workers comp coverage include $1,000 penalty for each violation, up to 1 year in prison and a court order to cease business operations until coverage is obtained.
With a history of violent, stormy weather, Nebraska also happens to be centered right in Tornado Alley. Putting a commercial property insurance policy in place means having the right protection for your business should any property damage occur during inclement weather. Many business owners may also want business interruption coverage added to their policies so that when bad weather shuts them down due to inaccessibility or property damage, they can still pay their bills while waiting for repairs or replacement. Property insurance covers the actual building and personal property inside that building so that if a loss occurs, the items can be replaced and the business can continue to operate.
How insurance companies compensate or replace property is based on the replacement cost or actual cash value of that property. These terms are written into the initial policy and once a claim takes place, if using replacement cost, the item will be replaced new, no matter what the current price of the item is. For actual cash value, the insurance carrier will pay what the item is worth at the time of loss including depreciation.
Commercial Flood Insurance
Nebraska is no stranger to flooding. Whether from storms or snowmelt, floods are a real danger to Nebraskan communities. Commercial flood insurance helps companies stay in business when they experience flood damage. Business building owners can apply for $500,000 protection for buildings and $500,000 for content from the National Flood Insurance Program administered by FEMA. Even companies that rent their business space can apply for content coverage to protect valuable inventory and equipment. F A 30 day wait period is necessary for a flood insurance policy to go into effect and therefore, companies will want to apply ahead of time to make sure they are protected before the imminent threat of a flood.
Additional Information on Nebraska Insurance