FAQ – Business Insurance

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Do I Need Worker’s Comp?

As of 2022, every state in the Union except Texas requires most businesses to carry worker’s comp insurance. Some exemptions do exist – for example, volunteers, people who work in exchange for aid or food, jurors, part-time workers, some real estate agents, employees who work on commission, and temporary workers.

Plummer Insurance’s Agents make getting your business into Worker’s Compensation Insurance Compliance easy. Call us today.

Does My Insurance Cover My Tools?

If your tools stay put at your business’ property, they’re likely covered by a Commercial Property Insurance policy.

If your tools travel with you to and from the job site, or are mobile by their very nature, you may need to look into an Inland Marine or a specific Tools & Equipment policy.

Our agents can help you determine which category your tools fall under.

What Does General Liability Cover?

Most Business General Liability policies cover property damage, legal fees due to a bodily injury, medical costs, reputational harm, false advertising, and damage to rented property from fire, lightning or explosions.

It generally doesn’t cover damages claimed by your employees, for which you’d need worker’s compensation or employment practices liability insurance.

Depending on your business’ needs, our agents can tailor a plan that covers all your bases.

What is Inland Marine?

Inland Marine insurance is a type of policy that covers the repair or replacement of tools, materials, and equipment that are damaged or destroyed while in transit. This includes tools that you are transporting off-site, as well as equipment that is mobile in nature, but wouldn’t fall under a commercial auto policy like forklifts and telehandlers.

If your products or equipment is on the move, Contact Us about an Inland Marine policy.

Do I Need Different Insurance if My Car is Owned by a Company?

It depends on whether or not the car is used for business purposes. If it is, or if the vehicle needs higher liability coverage, you’ll likely need a commercial auto policy. If it’s only occasionally used for business and you’re a sole proprietor, you may be able to get by with personal auto insurance.

The best coverage for you will depend on the particulars of your situation, but an experienced agent can guide you to the best solution.

What is a Work Comp Mod?

An experience modifier is an adjustment to your business’ worker’s comp premium based on the insurer’s losses from claims during a certain period of time. Your company’s losses are compared to those of other business of the same size and type to determine this number.

Basically, it incentivizes keeping your workplace a safe one, as companies with fewer claims can expect a lower modifier, which in turn saves them money on their annual premiums.

Why do I Need Worker’s Comp if I Have Health Insurance?

For starters, it is likely required by law in your state. While health insurance generally covers an employee’s medical procedures, worker’s comp covers other effects of an accident on the job, like lost wages, ongoing care costs, disability payments, and funeral costs.

What is the Difference Liability and Medical Payments?

A liability policy covers bodily injury and property damage caused to others that was caused by you or your business.

Medical payments coverage, on the other hand, doesn’t cover property damage but will cover medical expenses from an accident regardless of who is at fault.

In other words, in order for a General Liability Claim to be paid out, the insured must be found negligent or otherwise at fault. That’s why the limits on liability coverage are higher – questions of fault usually involve legal proceedings and are generally only invoked when serious injuries or other costly damages occur.

Medical coverages tend to have much lower maximum limits, but they allow for claims to be paid whether the insured is found to be at fault or not. This provides an option for settling minor incidents without requiring a legal dispute.

What is Business Income Insurance?

Business income insurance, also known as business interruption insurance, covers the loss of profits that would have been earned when a business has to shut down temporarily due to a covered disaster. It also often covers costs for temporary relocation of a business, fixed costs that continue while a business is closed, and loss of income due to closures as a result of government orders.

Our Agents can tailor a policy to your business’ particular needs.

What is a Certificate of Insurance?

A certificate of insurance, commonly abbreviated to COI, is a document produced by an insurer that provides a summary of your business’ coverage. It’s usually requested by clients to verify that your business carries adequate insurance before starting work on a project.

Get in touch to request a certificate of insurance.

What is a Percentage Deductible?

Traditionally, insurance policies come with a Flat Deductible – setting a fixed amount of money that the insured party has to pay before the policy kicks in. For instance, if your property insurance deductible is $2,000, you would pay out of pocket for the first $2000 worth of damages, and the insurance policy would pay everything else (up to your limit).

What is becoming more common is a Percentage Deductible, where the insured’s payment obligation is calculated as a percentage of the property’s value. So, for instance, if your property is worth $200,000 and you have a 2% deductible, you would pay out of pocket for the first $4000 in damages.

What deductibles are available in your area can vary from insurer to insurer – but Plummer Insurance offers coverages from dozens of companies and their experienced agents can help you weigh the pros and cons of each one.

What is Cyber Insurance?

Cyber insurance, also known as cyber security insurance, helps with recovery costs to your business after a cyber attack. It can cover lost revenue during an interruption of business, ransom payments in the event of a ransomware attack, and liability coverage in the event customers sue your company after a data breach.

What is Directors & Officers Insurance?

Directors & Officers liability insurance, also referred to as “D&O,” is a type of coverage that protects the personal assets of the directors and officers of a company in the event they are sued for actions taken in the course of doing their jobs. It can also cover the cost of defense against criminal and regulatory trials. Of course, like most insurance, a D&O policy typically doesn’t cover intentional illegal acts.

What Insurance do My Subcontractors Need?

Generally speaking you want all of your Subcontractors to have the same coverage you have, at the same limits. For most insurers, this a requirement for general contractors.

Regardless of your insurer’s policy, typically subcontractors should have a general liability policy, worker’s comp insurance, errors and omissions insurance, and a business owner’s policy. If your subcontractor uses a vehicle in the course of their work, a commercial auto policy may be necessary as well. They should be able to provide a copy of their COI upon request.

What is a Ghost Policy?

A ghost policy is a type of worker’s compensation insurance that helps self-employed business owners to meet the insurance requirements of a client without providing any actual coverage. Since it’s generally purchased by businesses with no employees, a ghost policy is generally more affordable than a traditional worker’s comp policy.

It is NOT insurance for damage caused by spirits – sorry.