Commercial Insurance

Read more about Commercial Insurance or
give us a call (847.526.5755) to request a quote.

 

Establish an agent relationship

 

One of the most important steps in moving your business forward is working with an Independent Insurance Agent who can advise you no matter what your stage of business development. At the Martin Insurance Agency, we will bundle your policies to save money, put together the right mix of policies for you now, and offer the best options as your business grows.

 

The purpose of business insurance is to protect your company’s assets from risks that you cannot afford to cover on your own. Begin with your hard assets and property insurance. Do you rent or own your space? If you own it, what would it cost your business to replace it and its contents in the event of loss? How quickly could you replace them? If you rent space or equipment, what coverage does the lessor’s insurance offer and how much will it cost you to replace damaged equipment and inventory, and/or move into a new space? Are you using your personal car for business? Will your personal policy protect you in that situation? Company cars will require a separate policy.

 

Commercial Liability Insurance

 

Commercial Liability insurance protects you and your business should someone (other than you, your employee, or a subcontractor) be injured or damaged. The cost of this insurance will depend on the risk associated with your type of industry and previous claims.

 

Bonded versus Insured

 

There is a difference between being bonded and being insured. While insurance protects a company when it causes damage to property, bonding provides financial protection when a company fails to perform as stipulated in a contract. A good example of this is in the cleaning industry. A cleaning company is insured in case it should cause damage to its client’s property. A cleaning company is bonded so that it can provide financial remedy should it not perform its services as promised in its contract.

 

There are various types of bonds. Surety Bonds are usually required by a governmental entity to insure the performance of your business. Each surety bond involves a different set of obligations, but may generally be categorized as:

 

Licenses

Licenses allow your business to perform services and use products only if they meet the criteria specified by that governmental body’s codes and regulations. Permit bonds allow for something to occur, such as the building of a structure.

 

Probate Bond

These bonds guarantee the proper performance of duties by companies or individuals that agree to manage, in some format, an estate.

 

Public Official Bonds

These bonds are posted to guarantee that the officials will perform their duties as prescribed by law. They are required only for certain elected or appointed officials whose position involves collecting money for a governmental body, working in law enforcement or the judicial system, or serving as a notary (Notary Bond).

 

Other Bonds

The judicial system often requires bonds for appeals, injunctions, attachments and the release of a lien. These bonds are incident specific and present a larger opportunity for failure to perform because of the detailed requirements.

 

Surety Bonds require extensive underwriting because they involve both monetary and performance guarantees. Contract Performance Bonds guarantee that the service or project promised in a written contract will occur in the manner specified by the contract. These bonds include Bid Bonds (guaranteeing that the winner of the bid will enter into a contract and provide a performance bond), Performance Bonds and Payment Bonds (guaranteeing payment to the individuals and companies involved in fulfilling the performance of the contract).

 

Commercial Liability Umbrella

 

Appropriate for business that could face liability lawsuits for over $1 million. These policies are often reasonably priced.

 

Employment Related Insurance

 

Due to the rise in charges of discrimination, harassment or wrongful termination, businesses need to consider employment practices liability insurance. This insurance will help protect company assets in the event of lawsuits.

 

Once you begin hiring employees – including yourself, you will need disability, workers’ compensation and possibly health insurance.

Discuss with your Independent Insurance Agent at the Martin Insurance Agency, the type of Disability Insurance that will protect you, your employees and the business in the event someone is injured and unable to work. It is important to look at how each insurance company defines a “disability” and whether that definition will fit with your needs and budget. Some policies include a Cost Of Living Adjustment (COLA) for inflation.

 

Ask us how Guaranteed Insurability allows you to add more insurance without having to go through the qualification process again. Discuss the variation in the cost of the policy due to the waiting or elimination period for payout. Lastly, consider a non-cancelable policy with fixed premiums and benefits. While it may be more expensive in the beginning, it could save your business money in the long run. It becomes even more important, in this case, to look at the financial stability of the company offering the policy.

 

Your business may also need to be covered in the event of disability. Should a key employee, such as a small business owner, be disabled, a Business Overhead policy will offer coverage of key company expenses such as payroll, benefits, space and equipment rental and utilities. You may also need to consider Business Life insurance. Such insurance provides for the continuation of the company in the event of your, or a key employee’s death.

 

Worker's Compensation insurance is required, by law, for every business that exceeds the legal minimum in employee compensation. We, at the Martin Insurance Agency, can advise you as to whether it would be beneficial to offer compensation beyond that which is required.

 

Benefits offered by a company can affect the quality of employees it is able to acquire and retain. These benefits can include health insurance, group life insurance, and incentive and retirement plans. By working with your Independent Insurance Agent, you can build a portfolio of affordable and desirable benefits that will allow you to hire the right employees as your business grows.

 

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Policy coverage is subject to the terms, provisions, exclusions, conditions and endorsements as stated in the policy.

 

If you have any questions, please call the Martin Insurance Agency at 847.526.5755