Tag Archive for: business insurance

insurance for e-bikes

e-bikes: responsibility and danger

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As e-bikes become more popular, the danger to both the rider and those around them also increases. While these bikes can be a great way to get around town, it is important that riders take responsibility for their actions and are aware of the dangers they present.

In this blog post, we will discuss some of the dangers associated with e-bikes and what riders can do to stay safe while enjoying this new form of transportation!

what is an e-bike?

An e-bike, or electric bike, is a bicycle equipped with battery power motors to aid with pedaling (either partially or completely depending on the bike).

In the state of California, electric bicycles can be classified according to their top speeds and type of assistance they provide. 

  • Class 1 e-bikes are powered solely through pedal-assistance, with no throttle option and a maximum speed of 20 mph.
  • Class 2 electric bikes feature both pedal-assistance and a throttle, also reaching a top speed of 20 mph.
  • Class 3 e-bikes offer pedal-assistance only, no throttle, but can reach a maximum speed of 28 mph.

e-bike dangers

E-bikes provide an exciting new way to get around town, but they also come with certain increased risks of injury that include: 

Speed 

E-bikes often have powerful electric motors that can propel them at higher speeds, making it easy to lose control if the rider is not careful. Because e-bikes can go faster than traditional bikes, riders may be more likely to suffer from road rash or other injuries if they crash. 

Weight

E-bikes tend to be heavier than traditional bikes, meaning they have more momentum and require a longer stopping distance. This can be dangerous if the rider is not prepared for sudden stops or has poor visibility of their surroundings. So riders may be more likely to suffer from musculoskeletal injuries if they fall off or are involved in an accident. 

Technology 

Since e-bikes have lithium ion batteries, riders may be at risk of electrical shocks if the batteries are damaged. Like any vehicle, electric bikes can malfunction or be subject to defects. It’s important for all riders of electric bicycles to make sure their bike is regularly serviced and maintained according to manufacturer guidelines in order to ensure their safety. 

To reduce the risk of an accident, riders should pay attention to their speed and make sure to obey the local laws. Additionally riders should always wear a helmet and exercise caution when navigating busy streets or other areas with traffic.

e-bike rules and regulations

Riders also need to be familiar with the laws and regulations regarding e-bikes in their area in order to stay safe on the road. Many states and cities have different laws regarding electric bikes, so it is important that riders know the rules before taking their e-bike out for a ride. Additionally, riders: 

  • should never ride an e-bike if they are under the influence of drugs or alcohol
  • must be mindful of the potential dangers posed by other riders on the road 
  • need to be aware that pedestrians, vehicles, and other e-bike riders can all present hazards to the rider 
  • should always be aware of their surroundings and take extra care when overtaking or being overtaken by another rider

It is important to remember that when operating an e-bike, rider responsibility and caution are key. With the right knowledge, riders can enjoy this newer form of transportation while staying safe and responsible!

e-bike laws and regulations in california

In California, e-bike riders must be at least 16 years old, and must wear a helmet when riding an e-bike.

The California Vehicle Code states that e-bikes are not allowed on public roads with speed limits over 25 mph, sidewalks, or bicycle paths—unless the e-bike is classified as low-speed. Additionally, e-bikes must have functioning brakes and lighting systems when used at night.

It is important for e-bike riders to remember their responsibility and the potential danger of riding an e-bike. E-bikes are powerful machines that can accelerate quickly and reach high speeds—which means they require extra caution when traveling in traffic. Riders must obey laws, signs, and signals to ensure the safety of all nearby riders, pedestrians and drivers.

Riders should plan their route ahead of time by following bike routes where possible, and they should always ride defensively. By following safety precautions and e-bike laws and regulations in California, riders can have an enjoyable yet responsible experience on the roads!

safety guidelines for riding an e-bike

Riding an e-bike comes with risks and responsibilities. To ensure that you are safe and responsible on the road, keep these guidelines in mind:

  1. Wear a Helmet – A helmet is essential to protect your head if you were to accidentally fall off your e-bike. Additionally, it is important to make sure your helmet fits properly as an ill-fitting helmet will not provide adequate protection.
  2. Follow Traffic Rules – As with any vehicle, it is important to stay aware of your surroundings and follow traffic rules such as speed limits, stop signs, and red lights.
  3. Don’t Ride Too Fast – Riding too quickly can make it difficult to react quickly in case of an emergency. Make sure you are aware of potential obstacles on the road and ride at a reasonable speed.
  4. Follow Rules for Paths and Trails – If you are riding your e-bike on a path or trail, be sure to follow all posted rules and regulations. Additionally, when passing other riders, make sure to give them plenty of space.
  5. Have the Right Equipment – Make sure that your e-bike is fitted with the proper equipment for riding such as lights and reflectors for visibility. Also, it’s a good idea to inspect all components of your e-bike before each ride to ensure everything is in working condition.
  6. Be Aware of Your Surroundings – When riding, it is important to be aware of potential obstacles such as potholes, rocks, and other objects that may not be visible. Be mindful of traffic around you and the direction in which it is moving.
  7. Dress Appropriately – To ensure your safety while riding an e-bike, it is important to dress appropriately. Consider wearing clothing with reflective strips, brightly colored clothes, gloves, long pants, and closed-toe shoes that provide adequate protection.
  8. Don’t Ride Under the Influence – Riding an e-bike while under the influence of drugs or alcohol is dangerous and illegal in most places. Avoid riding when impaired for your own safety and for those around you.
  9. Be Aware of the Battery Life – Make sure that your e-bike battery is fully charged before you start riding. Furthermore, be aware of how far you can travel with the current charge and plan accordingly.
  10. Be Aware of Electric Components – Be sure to stay away from any wires or electric components on your e-bike when charging it or making repairs. Never ride with any exposed wires or faulty parts that could create a hazard.

These safety guidelines can help ensure that you are riding your e-bike responsibly and safely. Enjoy your ride!

final thoughts

By following the safety guidelines outlined in this blog post, riders can enjoy all that e-bikes have to offer while staying safe and taking responsibility. E-bikes can be a wonderful way to get around, but riders must take the time to familiarize themselves with the potential dangers they present in order to keep themselves and those around them safe.

In short, it is important for all e-bike riders to always obey traffic laws, plan ahead, and remain aware of their surroundings while on the road. By doing so, they can minimize the risks of accidents and ensure a safe ride for all.

At benchmark, we recommend insuring your e-bike for an extra layer of protection. Reach out to us or read about e-bike insurance coverage on our blog to learn more. 

A male teenager sitting on a curb, dialing on his phone with a wrecked car in front of him

what is vicarious liability?

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Vicarious liability, sometimes called imputed liability, is a legal concept that extends responsibility for one person’s actions to another person.

This other person does not have to be directly responsible for the incident — they only need to have a business, organizational or family connection to the person who committed the act.

Examples of vicarious liability include:

  • When an employer is held accountable for the actions of one of its employees
  • When individual business partners are held liable for the actions of fellow partners
  • When parents are considered responsible for the negligent acts of their children or other people’s children while under their supervision
  • When directors and officers are held accountable for acts committed while they were performing duties on behalf of a corporation

why is vicarious liability applied?

The concept of vicarious liability rests on the legal doctrine called “respondeat superior,” a Latin term meaning “let the master answer.” Essentially, it shifts responsibility for negligence, libel, wrongful conviction and other civil complaints to the individual or organization that is assumed to be senior in the relationship.

The primary reason for invoking vicarious liability in a lawsuit or insurance claim is to shift the burden of payment to the party who is considered most likely able to cover the legal expenses, medical costs, or settlements or judgments that result.

how is vicarious liability justified?

Business owners, parents and organizational leaders are given the assumed right to control the actions of those they supervise. These leaders have a legal duty to maintain a safe environment and train or educate on proper behavior and skills.

Because of this presumed control, they can be considered at fault if the person under their supervision fails to perform their duties appropriately, damages another individual’s property or causes physical harm to someone else.

With regard to businesses, this responsibility is in effect only when the employee is on the clock and working within their scope of employment.

This can be a somewhat disputable definition. For example, an employee can be involved in an accident on their way to work or at an after-hours social event. Therefore, the courts have developed more definitive guidelines to clarify vicarious liability.

  • Most states exclude incidents that occur during an employee’s commute to or from work. Exceptions may be made when an employee’s personal car is used as part of their job, such as for on-site client visits, or if an accident occurs when an employee’s car is being used for a work-related errand.
  • If a company-sponsored social event is mandatory or the employer benefits from the employee’s attendance, the employer could be held vicariously liable for a related incident. An example might be an employee who is involved in an incident at a client networking event, especially if alcohol was served.
  • If an employee is involved in an incident while completing a personal errand but that personal errand was carried out during a job-assigned task, the case will be reviewed to see how it relates to a legal concept called “frolic and detour.”
    • A frolic is a major departure in either time or distance traveled from the assigned work responsibility.
    • A detour is only a minor departure.
    • The assignment of vicarious liability depends on when the incident occurred — during a frolic, which is considered off the clock, or a detour, which is considered on the clock.
  • Any time a business-owned vehicle is used, whether by an employee or a nonemployee, vicarious liability is typically admissible in a claim or lawsuit.

what about independent contractors?

Typically, independent contractors are held solely liable for their own negligent acts. However, there are some exceptions:

  • If the contractor chosen is considered incompetent or not suitable for the task, the contracting organization could be sued based on negligent hiring.
  • If the contracted work is inherently dangerous, the employer retains primary responsibility.
  • If the business passes responsibilities it isn’t legally able to delegate to a contractor, it can be held liable. This is most often related to workplace safety issues but may also include other issues of supervision and leadership.

protecting yourself and your organization from vicarious liability

While you may be unable to fully control the actions of others, you can control how you protect your assets. An agent or broker who specializes in liability insurance can help you address your risk of vicarious liability with a range of insurance options.

These may include small-business liability policies, general liability coverage, commercial auto, professional liability (errors and omissions), workers’ compensation, directors and officers insurance, and other policies that can help with any legal fees or expenses related to a claim that invokes your vicarious liability.

When appropriately designed, these same policies can also protect your employees and other related individuals. Reach out to us to learn more.



A female employer is sitting across from a male employee, going over paperwork with him. She has a pen in her hands and he has his hands clasped together on the desk.

who does your employment practices liability insurance cover?

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what is and is not covered by EPLI?

Employment practices liability insurance, or EPLI, is an insurance policy that provides coverage to employers against claims made by their employees.

These claims include:

  • wrongful termination
  • sexual harassment
  • retaliation
  • unequal or unfair pay
  • discrimination (i.e. age, race, gender, sexual orientation)

 

EPLI covers the cost of lawsuits brought against your company by current, former, or prospective workers that believe that their legal rights have been violated or are displeased with your employment practices. Employers need EPLI to be financially protected from these claims.

However, EPLI doesn’t cover everything. The following are examples of what’s not covered: 

  • fraud or crime
  • contractual liability
  • on-the-job worker injuries
  • punitive damages
  • unemployment claims

 

Although some industries are more prone to these types of claims than others, the most common industries to have EPLI claims filed against them include construction, healthcare, professional services, and retail or food services.

how important is EPL insurance?

EPLI is important because all businesses with employees are susceptible to the threat of an employee submitting a claim against the company.

 

The policy protects business owners from these claims made by disgruntled employees and helps shield your business from potential financial ruin. Employee claims can be very expensive and even detrimental to small businesses.

 

EPLI helps cover the financial costs associated with legal action. Attorney fees and settlement costs are reimbursed by the policy, which means your business does not have the unexpected financial burden of paying off employee claim-related legal fees.

what’s the difference between EPLI and professional liability?

Professional liability insurance, also known as errors and omissions (E&O), covers legal action against your company from a client claiming inadequate work, negligence, services not delivered, and oversights.

 

This type of insurance is beneficial for businesses or professionals who give advice or provide a service for a fee in the healthcare, legal or financial industries, just to name a few. Examples of this would be doctors or lawyers.

 

It’s a good idea to have both EPLI and professional liability insurance as a business owner. The policies are not the same and cover different risks. While EPLI covers employee claims, E&O covers claims from clients. 

what’s the relationship between D&O coverage and EPLI?

Directors & Officers (D&O) Liability insurance protects directors or officers of a company from personal losses if they are sued for committing negligent acts or misleading statements.

 

With this insurance, the executive’s personal assets are safe from a lawsuit. D&O covers losses associated with the lawsuit, including legal defense fees. Exclusions in D&O policies are also similar to other professional liability policies, including property damage, bodily injury, and fraud or misrepresentation.

final thoughts

D&O insurance, E&O, and EPLI all protect employers and/or managers in different ways. It’s important for businesses to assess their risk when deciding whether to purchase these types of policies and how much coverage to buy.

This is dependent on factors like what type of industry you’re in or the size and makeup of your company. While it’s beneficial for your business to have EPLI and the various types of policies discussed above, it’s even more advantageous to prevent issues with employment practices that would pose these risks. Read on for three tips to avoid employment practices issues.

water leak, flooding a room with a wood floor, a couch and windows.

ensuring your business has appropriate water damage coverage

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You might be looking at the title of this article thinking… “Why does my business need water damage coverage?”

Well, contrary to popular belief, water damage is one of the leading insurance losses, and can greatly impact your business. In fact, water damage is the second most common insurance claim for businesses. 

This considered, it’s important to take the proper steps to mitigate the high risk of water damage by having the proper insurance coverage.

does my insurance include water damage coverage? 

It’s important to have the right kind of business insurance for your commercial property. You want a policy that includes commercial water damage coverage.

The types of water damage claims covered by some commercial property insurance plans include:

  • Pipe breakage
  • Groundwater, and
  • Backed-up sewer lines

However, many policies exclude coverage for external flooding and mold-related damage.

For some insurance plans, you can purchase additional protection to your property policy to gain more coverage. There are also other types of insurance policies—for example, commercial flood protection or business interruption insurance—that can help safeguard your business from loss of income if your business has to close due to flooding or water damage.

what qualifies as water damage?

Commercial water damage is the destruction that a water-related issue can cause to your commercial property.

Damage can range from a corroded pipe bursting, a defective or improperly installed fitting can leak, and failed heating systems. All of these damages can result in major non-weather-related water disasters.

Common kinds of commercial water damage can come from many sources on the property. Always monitor your building to be aware of the areas where water damage can occur so you can be prepared if it does.

monitor your building

Pay careful attention to these parts of your property:

  • Roofs require maintenance to prevent damage from the elements
  • Pipes can easily leak or get damaged from extremely cold temperatures or old age
  • HVAC system can also leak or break due to a lack of maintenance or overuse

why is water damage not included in my property insurance?

Commercial property insurance commonly covers the loss of or damage to a property owned by a business. The damage that is covered includes:

  • Fire
  • Wind
  • Lightning
  • Explosions
  • Theft, and
  • Vandalism

However, most commercial property insurance does not include water damage. That’s why it’s important to know what your policies cover. Flood insurance is actually covered under a separate policy and can be purchased separately.

reach out to benchmark commercial insurance

Water damage is typically affected by the weather or a natural disaster that can create damage to your property—even with preventative measures, you can’t always control what happens.

Having a proper disaster plan, a building with adequate drainage systems, and regular maintenance and inspection schedules will help prevent damage and accidents.

Having a water damage insurance policy provides you coverage to help with the financial liability costs due to water damage. To find out more about water damage insurance and property insurance reach out to us or read on about why water damage is a top insurance loss.

employee injured at work

looking at workers’ compensation post-pandemic

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Before COVID-19, the workers’ compensation (WC) process was fairly efficient. The pandemic, however, has brought a unique set of challenges to the workers’ compensation industry, including remote and hybrid work models, job elimination, and more.


Let’s chat about workers’ compensation post-pandemic.

what is workers’ compensation?workers' compensation overview infograhpic

Workers’ compensation is insurance purchased by employers “that provides cash benefits and/or medical care for workers who are injured or become ill as a direct result of their job.”

According to the U.S. Department of Labor, workers’ comp can provide the following to the injured:

  • “Wage replacement benefits
  • Medical treatment
  • Vocational rehabilitation
  • Other benefits”

do all employers need workers’ compensation?

Yes, yes, and yes again.

According to the California Department of Industrial Relations, “all California employers must provide workers’ compensation benefits to their employees under California Labor Code Section 3700. If a business employs one or more employees, then it must satisfy the requirement of the law.”

why is workers’ comp important post-pandemic?

In 2020, employers’ workers’ comp premiums decreased by 10% due to decreased payrolls and fewer claims, according to the National Council on Compensation Insurance.

Fast forward to 2022, however, and things have shifted again. As more employers begin to adopt greater safety in the workplace as well as remote and hybrid work models, workers’ compensation has changed post-pandemic.

Many employers are facing the question of workers’ compensation for their remote employees: Do I need it?

In short – Yes. You need workers’ compensation for ALL employees, no matter where they are working from.

Whereas many remote businesses won’t experience the same ‘on-the-job’ type of workers’ compensation claims, they will likely experience more claims coming from ergonomic concerns (i.e. neck and back pain, finger and hand pain, etc.)

Read on for more information on workers’ compensation in the hybrid workforce.

Workers’ compensation is important for the same reasons pre-pandemic as post-pandemic. Workers’ compensation helps employers avoid hefty out-of-pocket costs in the event an employee is injured.

(PS: When it comes to small businesses, these out-of-pocket costs may be enough to shut operations down entirely—so don’t risk it!)

workers’ compensation costs are on the rise

Workers’ compensation rates have been gradually increasing over recent years.

This increase was bolstered, however, in July 2022, when the Workers’ Compensation Insurance Rating Bureau of California® (WCIRB) submitted its September 1, 2022, pure premium rate filing to the California Department of Insurance (CDI).

The California Department of Insurance helps regulate workers’ comp rates using the WCIRB’s recommendations.

In this 2022 filing, the WCIRB proposed a set of increased premium rates that are, on average, 7.6% higher than those approved the year prior on September 1, 2021. Wow!

Read on for the WCIRB filing.

why are workers’ compensation costs increasing?

Simply put, workers’ compensation rates are rising because there are more claims being filed.

Research shows claims might be increasing because:

  • Inflation
  • Workforce changes
  • Increasing age of the workforce
  • Increased indemnity costs, and
  • Rising wages

Claims—regarding unsafe working conditions, COVID exposures, and/or workplace accommodations—might also increase as individuals begin to return to in-person work.

what can business owners do to reduce workers’ compensation claims?

Considering the high increase in the cost of workers’ compensation coverage, business owners should do everything possible to reduce claims being filed. As a business owner, you can mitigate workers’ comp claims by:

  • Encouraging mental health awareness
  • Focusing on risk mitigation
  • Conducting proper employee training
  • Updating your employee handbook and code of ethics, and
  • Maintaining a safe workplace

Interested in learning more about how to reduce the number of workers’ compensation claims that your business faces? Read our article “how to avoid the most common workplace injuries.”

employee claim being discussed between two women

how EPLI can protect your business

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For many business owners, the prospect of a lawsuit by a disgruntled former employee looms like a shadow in the background. If there’s one thing you can use to prevent that, it’s this:

Employment Practices Liability Insurance (EPLI).

Well, of course, there are others but if you’re only going to do one thing– get EPLI coverage. Let’s chat about how EPLI can protect your business in the event of an employee lawsuit.

infographic for "how EPLI can protect your business"

what is EPLI?

Employment Practices Liability Insurance, or EPLI, is insurance that “provides coverage to employers against claims made by employees.”

Policies typically extend coverage to the following:

  • Wrongful Termination
  • Sexual Harassment
  • Wage-Related Claims
  • Claims of Unequal or Unfair Pay
  • Discrimination Claims (i.e. age, race, gender, sexual orientation)
  • Third-Party Claims

Read on for three tips to avoid employment practice issues.

who needs EPLI?

Although some industries are more prone to these types of claims than others, the most common industries to have EPLI claims filed against them include:

  • Construction
  • Healthcare
  • Professional services
  • Restaurant and food services
  • Retail, and
  • Manufacturing

how can EPLI protect your business?

EPLI helps protect your business from financial devastation.

Employee claims—whether the employee is currently or had been previously employed—can be very expensive; and even detrimental to small businesses.

EPLI helps cover the financial costs associated with legal action. Attorney fees and settlement costs are reimbursed by the policy, which means your business does not have the unexpected financial burden of paying off employee claim-related legal fees.

turn to benchmark commercial insurance

Don’t know whether you have EPLI coverage or the quality of it? Our team at benchmark commercial insurance can help.   

We’ll review your coverage and give you recommendations free of charge. No hard sell, just insights. 

For those who want to learn more, including if their business needs EPLI coverage, read our article “employment practices liability insurance — do you need it?”

man holding phone at computer with blue screen that says cyber security

the evolution of the cyber insurance market

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Considering today’s digital world, cyber-attacks have become increasingly common over the past decade—and with more significant financial impact. Breaches including phishing emails, viruses, ransomware, or other malicious attempts can cost companies billions of dollars.

As a result, more businesses and organizations—both small and large—are investing in cyber insurance to avoid catastrophic losses and expenses—and we don’t blame them. However, the cyber insurance market itself has changed a bit as well. Let’s discuss the evolution of the cyber insurance market and where it is right now.

what is cyber insurance?

Cyber insurance is a policy that protects your “business’ liability for a data breach involving sensitive customer information.” This sensitive information might include:

  • Credit card numbers
  • Account numbers
  • Health records
  • Social security numbers
  • Driver’s license numbers
  • And more

Typically, cyber liability insurance covers network security and data privacy incidents, including first-party costs and third-party claims. Remember, no business—no matter how big or small—is safe from the threats of a cyber attack today.

Not quite on board yet? Check out the shocking cyber attack statistics from AAG below.

cyber attack statistics

Did you know…

  • There is a hacker attack every 39 seconds
  • 64% of companies have experienced web-based attacks; 62% experienced phishing and social engineering attacks; 59% of companies experienced malicious code and botnets
  • Since 2013, there are 3,809,448 records stolen from breaches every day
  • 43% of cyber-attacks target small business
  • Over 75% of the healthcare industry has been infected with malware over the last year

where is the cyber insurance market today?

Today, despite the increased need for cyber protection, organizations are faced with a difficult cyber insurance market. The market is characterized by:

  • Rapidly increasing losses
  • Non-renewal cases
  • Increased premiums
  • Coverage restrictions
  • And longer underwriting periods due to increased requirements

Infographic of the evolution of the cyber insurance market

how benchmark can help

The United States cyber insurance market, according to the National Association of Insurance Commissioners, expanded to $4.1 billion in direct premium in 2020, an increase of over 29% from 2019.

Our team at benchmark commercial insurance is understanding of today’s cyber insurance market—and is here as your partner to navigate insurance compliance around everyday business transactions, ensuring you have the right coverage for your risk tolerance.

Reach out to benchmark today to learn more about our dedication to providing global capabilities with our boutique experience.

construction worker sitting on job site injured

how to avoid the most common workplace injuries

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Between 2015 and 2019, workplace injuries kept workers out of work for more than 17 million days when looking at 1.5 million workers’ compensation claims. That’s right—we said 17 million days, according to The Travelers Injury Impact Report. Workplace injuries are an employer’s biggest nightmare for a variety of reasons.

Let’s chat about how to avoid the most common workplace injuries and what they are.

what are the most common workplace injuries?

The most common workplace injuries across all employees and industries were ranked as follows:

  • Overexertion
  • Slips, trips, and falls
  • Struck by an object
  • Motor vehicle accidents

Moreover, for first-year employees, cuts, punctures, and being caught in or between hazards also accounted for a significant portion of injuries.

how to avoid workplace injuries

At benchmark, we bring these statistics to light to provide businesses with an understanding of what is happening (or can happen) in their workplaces. 

We’d like to help your business avoid workplace injuries by discussing four tips on how to avoid them. Check them out below.

prioritize a safety-first culture

In your business, it’s important that your employees know safety is a priority. Implementing a solid safety program will look different for each industry; however, your safety program will likely include safety meetings, tests, the proper safety equipment and tools necessary to complete work, and of course, safety training.

When you implement a safety program, it should be your number one priority to do everything in your power to prevent employees from getting injured or sick. (Yes, this includes making sure all of your carpets have non-slip grip or are secured to the floor to prevent slips!)

stabilize your employee population

Accidents happen more frequently when businesses don’t have adequate staffing levels. One way that you can avoid injuries in the workplace is by ensuring you have a stable employee population.

Why? Overworked employees are more likely to suffer from exhaustion, which can lead to cutting corners to make ends meet. A solution could be hiring part-time or even seasonal staff to help prevent these common workplace injuries.

implement a safety-incentive program

Most employees just want to know that they’re valued and to be recognized for their efforts. A great way to do so, while also increasing workplace safety, is by implementing a safety-incentive program.

In fact, the Occupational Safety and Health Administration, more commonly known as OSHA, recommends safety-incentive programs, which reward “workers for reporting near-misses or hazards.”

According to OSHA, effective safety-incentive programs can “provide positive reinforcement for reporting illnesses and injuries,” making the workplace a safer environment altogether.

invest in insurance

Insurance is one of the most important things a business owner can invest in to keep their business safe. The types of insurance your specific business might need will vary depending on your industry, state, and business itself. However, some common types of insurance include:

  • Commercial Property Insurance
  • Cyber Liability Insurance
  • Commercial Auto Insurance
  • Workers’ Compensation Insurance
  • General Liability Insurance

infographic on How to Avoid the Most Common Workplace Injuries

Speak with a professional—like our team at benchmark commercial insurance—to learn what types of insurance you need to keep your business protected. Read on for your complete guide on workers’ compensation in the hybrid workforce.

the insurance you purchase for your business depends on your business type

how do I insure my business?

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Have you recently started a business and don’t know where to start when it comes to insurance? As a business owner, you might understand the benefits of an insurance policy as it pertains to paying for damages—so you aren’t paying them out of pocket—but what policies does your unique business need?

After all, commercial insurance isn’t one size fits all. The insurance needs of a marketing agency, for example, will likely vary from those of a law office.

Watch Robert Cohen, Principal at benchmark commercial insurance, explain how to insure your business in the video below.

 

what types of insurance does my business need?

Some insurance types are required on a federal level while other are required by the state. Some insurance types, however, are required by contractual agreements or motivated by “best practices” corporate governance.

So, what types of insurance does your business need? This depends on a variety of factors, including:

  • How many employees your business has 
  • Your sales revenue
  • Your annual revenue 
  • The industry you’re in
  • Your level of expertise
  • Where your business is located
  • How much risk you’re willing to tolerate

insurance for different business types

Let’s discuss four different business insurance types: home-based business insurance, small business insurance, medium-sized business insurance, and insurance for large businesses.

home-based business insurance 

Home-based businesses account for half of the businesses in the United States. Insuring this type of business model with homeowners insurance alone won’t cut it when it comes to business property loss or liability. 

small business insurance 

The Small Business Administration (SBA) defines small businesses as businesses that are owned and operated independently, and are for-profit. Often, these businesses have fewer than 500 employees.

A common small business policy is a Business Owner’s Policy for businesses with fewer than 100 employees and revenues of up to about $5 million or less. 

While you can purchase customized insurance to cover your specific type of business, insurers offer standardized small business policies that enable you to protect your company against the most common risks at an affordable rate.

medium business insurance 

Medium businesses usually range between 50 to 1,000 employees and have annual revenues between $10 million and $1 billion. Typically, there are specialized insurance policies designed for medium-sized businesses.

Here, policies become more flexible based on the needs of the company. For instance, if your business owns expensive equipment or has multiple locations, you can seek out customized policy options to address these elements.

large business insurance

A large business is considered such if they have over 500 employees. There aren’t linear revenue requirements for a business to be considered “large.”

Since these businesses employ hundreds of people and more than likely have multi-million-dollar revenue risks, their commercial insurance policies must be tailored to the business’s unique needs.

types of insurance to insure my business

Understanding your insurance needs for your unique business is essential to your success.

At benchmark commercial insurance, we often find business owners who are either under-insured or even over-insured at times. Your policy supports your business operations and gives you peace of mind that if something occurs, you are covered financially.

So, what type of insurance do you need for your business? There are many insurance policies to choose from to support your unique business. A few to consider include:

how to properly insure my business

The number one thing to consider as you invest in insurance for your business is: Do any of my current policy forms have coverage restrictions or exclusions that limit my coverage for the business I am in?

When insuring your business, at the highest level, transfer the risk of financial loss to the insurance company from your balance sheet in as many ways possible.

Doing so, however, comes with a cost. Sometimes that cost is too much to bear.

A key component of insuring your business is your relationship with your risk management/insurance services service provider. How will they help you structure your policies to be the most effective in coverage and cost? It takes time.

Your insurance professional should be sitting with you periodically to make sure that both parties are up to speed on all of the moving parts of your business operation.

Moreover, your insurance professional should make sure they’re offering you every commercially available tool to transfer the risk from your balance sheet to the insurance company (again, in as many ways possible). Once organized, it’s up to you to determine what may or may not fit into your budget or what policies best protect your business.

If you’re not having these conversations with your insurance services provider, reach out to our team at benchmark insurance. Here, we thrive on creating a boutique insurance experience for our clients.

Now that you understand how to insure your business, read our article on how much you should pay to insure your business.