All small business owners need insurance, and most of them get their essential coverage through a business owners policy, also called a BOP. Within the BOP will likely come liability insurance, sometimes called commercial general liability policy. But, within the liability coverage itself, there are different options that apply to different scenarios where a claim might arise. What are these different coverage options? When can you file against them?
General liability policies can come to your aid in a variety of situations. However, whether you need to add extra coverage alongside this policy might depend on the coverage included within your initial coverage.
A BOP is a way that allows small business owners to get numerous types of insurance within one policy. The convenience of the BOP is that it usually offers coverage limits tailored specifically to smaller enterprises, and each coverage option will work in tandem with one another. The BOP also adds the convenience of allowing the business owner to pay one premium for multiple types of protection.
General liability insurance is usually among the essential coverage within the BOP for the simple reason that it’s one of the most-important types of coverage a business owner needs.
Liability insurance applies to third party damage that you might cause through your services, or through mistakes made in the business. In other words, if you make a mistake (through action or inaction) that harms another party, like one of your customers, then this coverage can help protect them on your behalf. It will help the affected party move on with their life, while also protecting the business from having to pay out of pocket.
Within your general liability policy, you’ll probably find that your claims can apply to several different types of third-party losses.
Bodily Injury Coverage
This is one of the most-recognizable types of liability coverage. It is sometimes referred to as slip-and-fall liability coverage. Should someone get hurt in your business, then they might hold you responsible for their losses, and expect you to pay. For example, if someone slips in a puddle on your floor, and they get hurt, this coverage can pay them for the costs of their recovery, such as medical bills and lost income.
Furthermore, some liability policies include an element of coverage called accidental medical payments coverage. For example, suppose that someone falls in your business simply by a pure accident. This coverage can help you offer them assistance with their medical bills, even though you may have had no obligation to do so.
Property Damage Coverage
This coverage will apply when you accidentally cause property damage to third parties. If you are a carpet cleaner, and while cleaning someone’s floors, you accidentally burn the carpet, or worse, cause a house fire, this coverage can help you pay the affected party for the repairs.
Personal Injury Coverage
These types of injuries are those caused by allegations of libel, slander, defamation or copyright infringement against a third party. Suppose that a competitor accuses you of libeling them through a smear campaign. This coverage can help you settle with that party.
A key part of liability policies is that they often contain coverage for legal expenses. This means that coverage can help you receive the help of a lawyer. Since many liability claims lead to lawsuits by the affected parties, then you might need this coverage to apply to your court costs.
In some cases, your policy might offer additional coverage like cyber liability insurance or errors & omissions coverage. However, you usually will need to add these and other more-specific types of coverage to your business insurance portfolio. Sometimes, you might be able to add them to the BOP itself, while in other cases you will have to buy a separate policy.
The good thing is, in these cases, deductibles usually won’t apply to liability claims. Therefore, the insurer can settle up to the limits of the policy, as long as the policy covers the situation in question. Always talk to your insurer to determine whether you qualify to file a claim.
If your motorcycle gets damaged, then you can expect to have to make repairs. It’s likely going to cost you money to do so, and you might want your motorcycle insurance to help you pay for it. If the bike is a total loss, then you can expect the problem to be a bit more complicated to you. How your bike insurance will compensate you might vary in this case. Some policies will only pay bikers a cash value amount for their bike, which might not equal the cost to buy a new bike. Here’s what you can do to increase how much your policy will pay you.
Speak to your motorcycle insurer about the ways to increase your bike’s physical damage coverage in ways that will always pay you a satisfactory amount in case of wrecks or other damage.
Step 1: Buy Physical Damage Coverage for Your Bike
Your state will likely require you to buy motorcycle insurance. However, you likely will not have any coverage for physical damage for your bike unless you request such protection.
While optional, physical damage insurance is an incredibly beneficial perk for you in case you have an accident while biking. Should the bike sustain damage, you will be able to file a claim against your physical damage coverage. Your insurer will then agree to compensate you for the cost of the damage, though deductibles will likely apply.
However, in most cases, there are two types of physical damage insurance for bikes—collision insurance and comprehensive insurance.
These policies will have their limits. For example, if you intentionally damage the bike then you will likely have no coverage. Furthermore, if your insurer totals the bike, then you might only receive a partial settlement for the loss of the vehicle.
Step 2: Understand Your Coverage Limits
If your insurer agrees to pay for your bike, that means they feel the bike can still be repaired at a value that’s beneficial to them. They will usually cover most types of damage to the bike’s original features, though your deductible may apply.
However, if the insurer does not feel that the cost to repair the bike is worth its value, they might decide to total the bike, and compensate you an amount of money for the value of the lost vehicle.
Here’s the catch, though. Most motorcycle physical damage policies will pay an actual cash value settlement for a totaled bike. This means they will only pay you the value of the bike at the time of the wreck. Given that motorcycles, like most vehicles, depreciate with age and use, a cash value policy might not pay you enough to replace the bike with a new one.
While even a cash value settlement might still prove adequate, there are ways you can often increase your coverage in a way to offer you more compensation in cases of a loss.
Keep in mind, not all of these perks will be available on all motorcycle insurance policies. So, don’t hesitate to speak to your agent about the ways to appropriately adjust your coverage.