Small business owners – what type of business and what insurance do you carry?

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We repair equipment on customer premises and carry general liability insurance, including coverage for property damage and personal injury. We don’t carry workman’s comp, only because the repair people (the employees) are also “officers” of the company – and our state allows us to be exempt from carrying it because of that. Thanks.
Interesting points have been made. I have further questions now – since the officers use their own personal vehicle (and have excellent auto coverage), we were told by our agent that the business should be “ok” and that business auto isn’t really necessary, because the business does not own any vehicles. Is this incorrect? As far as workman’s comp, the officers pay for their own (very good) health insurance that covers prescriptions, emergency room visits, long-term care, etc. Would any injury incurred while on a customer’s site be covered under that? It is highly unlikely, due to the nature of what they do that they would be injured. Maybe a paper cut… or I could see maybe falling from tripping over a carpet, but nothing related to the actual work (which is why we opted out).

3 Comments
  1. Reply
    Zarnev
    December 31, 2011 at 12:57 pm

    You need business auto insurance on the vehicles that the repair people drive. Regular insurance won’t pay any claims if you are using private vehicle insurance for business use. This can be an actual business policy or in most cases your regular insurance can be classified as business.

    Depending upon your business you could possibly need to be bonded. Some clients won’t use your services if you’re not.

    Will your business fall on hard times or possibly fail if one of the employees dies? A life insurance policy would help there.

  2. Reply
    mbrcatz17
    December 31, 2011 at 1:57 pm

    yeah, well, you’re going to lose out on contracts because of not carrying workers comp.

    See, regardless of whether or not YOU are required to carry it or can opt out, if you don’t have it, the guy you do WORK for is REQUIRED BY LAW to provide you with benefits if you’re injured on his job, and your employer doesn’t have it. Trickle up theory, if you like.

    So *I* advise all my commercial clients, if your sub/vendor has no workers comp, for WHATEVER reason, don’t allow them on your premises. Too much exposure – it JUST isn’t worth it.

    I ALSO advise them, they need the cert of ins showing gl, commercial auto with hired & nonowned, and of course, workers comp; and to not release payment until they have that cert.

  3. Reply
    little boy
    December 31, 2011 at 2:46 pm

    please try this help!

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