Businesses of all sizes understand the importance of liability protection, but not all businesses feel that they can afford quality insurance coverage. It is true that some commercial coverage premiums can be quite expensive, but there are options for smaller or niche businesses that can’t find the right comprehensive plan.
Choosing a Coverage Plan
Captive insurance programs are a private sector response to commercial insurance providers. Members of these group captives form their own insurance plans, in a way that resembles a farmer’s co-op. Members invest their own capital, motivating an approach to minimize and control loss in order to keep the costs down. These partnerships are generally within businesses of similar industry or operations, offering more than just affordable liability protection.
Commercial Liabilities
There are several reasons why a company needs protection from loss. While the benefits of an insurance program don’t address the reasons a loss is experienced, it provides the financial assistance needed to deal with it. Depending on the coverage contract, you may find that your insurance will provide the funds for legal assistance or settlement payouts in the event of a lawsuit. If damage to property has occurred, the financial support may help with replacing or rebuilding property or assets.
Employee Coverage
Not only does insurance work with protect the physical and financial aspects of your business, you need a plan that will also work for your employees. Federal law requires that employees are given a number of benefits. There are stipulations for employees to qualify, such as hours worked and employment status, but health insurance and workers compensation insurance are two primary forms of employer offered benefits. These are items included in many commercial insurance packages, but can also be added as needed.
The nature of your business and the liabilities that you are exposed to necessitate a comprehensive insurance plan. Whether you choose a group captive plan or look toward traditional commercial insurance, make sure your business is protected from loss with quality coverage.
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