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Business Insurance: A Quick & Easy Overview - YouTube
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hey this is Jeremy from shine insurance
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in our video today is really the
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business insurance overview the four
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basic parts of insurance this video is
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for you if you are either new to owning
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in business and just kind of want to
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understand how insurance works or you've
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owned a business for a long time and
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you've never really paid too much
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attention to your insurance policy and
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you want to understand it now I'm gonna
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go very quickly through coverages and
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provide you with a form that you can
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download that really is going to
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organize your insurance world no matter
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where you get your insurance from so
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let's dig right into it what we're gonna
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learn is the four basic parts the first
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is what's called liability coverage the
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second is property coverage the third is
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workers compensation coverage sometimes
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called work comp and the third is
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commercial auto insurance so we're gonna
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break those four things down for you
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very quickly I want to show you the
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coverage details form that I really
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think you should download and have in
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front of you while watching this video
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we have two options you can look down
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below the video in the show notes and
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download that link I would stop this
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video right now and download both
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options the first one is a blank form so
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it has all the coverages I'm going to
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talk about but it doesn't have any of
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the the limits in it so that you can
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fill them in yourself and then the next
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one has some example limits so I've
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filled it in with something that I might
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provide or offer to a client so you can
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see some common coverage limits and
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examples of what those difference
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coverages might look like so you can
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compare them to your own policy and get
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a sense of kind of what it should look
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like so the blank one I would download
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and then the example one I would
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download the blank one obviously is for
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you to complete and the example one is
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one that I've put sample coverage limits
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in there so you can see what your
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coverages might look like the rest of
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this video is going to go through these
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line by line and just say what they are
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so you can have that in front of you and
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you know understand each line so you
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know what's going on there so let's dig
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right into it we're starting with
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liability coverage
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what liability coverage is is coverage
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for bad things that happen to other
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people because of you or more
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specifically in this video because of
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your business bad things that happen to
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other people because of
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you that could be covered for medical
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bills or lawsuits associated with
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injuries to patrons at your place of
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business this is the trip and falls or
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someone had something bad physically
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happen they slipped or anything like
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that those are going to have general
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liability coverage is going to be what
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you have for those types of coverages so
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a common limit for these is a million
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dollars per occurrence and two million
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dollars per year oftentimes it's
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separated out by how much your insurance
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company would pay out and any given
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occurrence one bad thing that happened
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in this example it's a million dollars
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and then the most your insurance company
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would pay out period for the whole year
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so if they got to that two million
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dollar limit then they would not pay out
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no matter what other bad things happened
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at your place of business so that's a
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common limit what is general liability
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not well it's not for sickness or
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injuries caused by your product or
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finished operations it's not for bad
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advice that you give to people and it's
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not for injuries to your employees we'll
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cover where those coverages come from as
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we move along but general liability is
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not for either of those three things
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medical expenses is the next thing it's
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a small and super accessible coverage
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for injuries to business patrons it's
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very much like general liability but
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it's a tinier amount usually five or ten
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thousand dollars it's very easy to
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access where general liability coverage
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comes sometimes can be after all the
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medical bills are paid out or even
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through a lawsuit process medical
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expenses is much more quick it's more
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much more quickly accessed essentially
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it's there to avoid a bigger liability
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situation with some medical expenses is
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an important coverage products liability
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this is where coverage for sickness or
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injury from your finished products or
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your completed operations comes from
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especially if you're a food provider or
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a food manufacturer or something like
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that products liability is super
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important to you and this is where it
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comes in Employment Practices Liability
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this is coverage for lawsuits
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associating with your hiring practices
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with your firing practices with your
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workplace behavior practices it's if
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something bad happened and someone
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decides to sue you because of any of
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those things then you could have
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Practices Liability coverage and an
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incredibly important coverage to have on
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your business insurance policy hope I'm
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not moving too fast here there are
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videos for a lot of these that are in
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much more detail but the point of this
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video is just to cruise on through and
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get you through as quickly as possible
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so that's what I'm trying to do right
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now employee benefits liability not a
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commonly known coverage with super
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important you provide benefits to your
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employees oftentimes health benefits or
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life benefits or things of that nature
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if for some reason the benefits package
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didn't come through in the situation
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where someone needed it you do have
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liability coverage for that if you have
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employment employee benefits liability
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cyber liability becoming much more
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important for businesses it's a package
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of coverage options associated with a
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cyber breach of your patrons personal
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information especially if you collect
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Social Security numbers Visa card
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information even birthdays and things of
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that nature if you have a any of that
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kind of information it could be breached
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then cyber liability is incredibly
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important for you to have the coverage
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for you to have there and then
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professional liability coverage is
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coverage for lawsuits resulting from
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errors omissions or bad advice provided
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by your business so if you're a
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financial advisor an insurance agent
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these are coverages that you need for
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sure but lots of different types of
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businesses need this coverage because
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you provide advice all different kinds
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of advice has coverage here and
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professional liability is where you find
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that coverage again not general
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liability but professional liability
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finally on the liability coverage hired
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and non owned auto oftentimes this is
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just thrown in as a part of the package
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but it's super important it's coverage
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for auto liability associated with your
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business in vehicles not owned by your
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business so if someone uses their own
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car to run an errand and is clearly
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doing business work but gets in an
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accident during that time you're hired
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and non owned auto policy may be what
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comes into play as a part of the
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coverage needed in that situation so
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hired and non owned auto coverage is the
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final liability coverage all right let's
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move on to property coverage property
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coverage is very simply
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coverage for damage to the physical
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assets of your business this could be a
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lot of different physical assets that
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your business owns property coverage is
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what covers them so let's check it out
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we start with building coverage building
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coverage is simply coverage for damage
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to the building itself if you own your
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building or if you have a lease that's
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like a triple net net lease where you're
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responsible for insuring your building
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even if you don't own it then the
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building coverage on your policy is
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incredibly important the next one is
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business personal property sometimes
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referred to as bpp coverage for damage
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to the inquit equipment furniture and
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belongings owned by the business so this
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is kind of like everything else the
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stuff you own inside of your structure
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you have office furniture you may have
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equipment specific to the business that
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you run all those kinds of things are
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covered by business personal property
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coverage that's an important coverage on
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your policy and it can be set up based
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on a payout of either replacement cost
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or a CV won't dig deep into these
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details but replacement cost is
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definitely what you want and not a CV
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another property coverage is data
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compromised this is connected with cyber
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liability often times the package cyber
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liability and data compromiser together
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but this case is if your hardware or
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your software is damaged or lost in a
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cyberattack so you have physical assets
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that are ruined or need to be replaced
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need to be redownload 'add need to be
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re-put together and data compromised
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coverage can help specialized equipment
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coverage also called inland marine
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coverage is coverage set up for
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incredibly valuable or specialized or
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hard to replace business equipment
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particularly if you have vintage
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equipment or things that are just very
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very specialized for your business you
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want to make sure that they're on your
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policy specifically and the coverage is
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set up properly insurance agent can help
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you with that money in securities
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coverage for the loss of physical assets
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like money or securities business income
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coverage super important coverage for
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lost income because of a covered
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business shut down so something bad
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happened your business can't run for
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that month or whatever it is you've lost
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the income associate with people coming
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in your front door and doing business
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with you your insurance policy can
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actually
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for some of that lost income if you have
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business income coverage employee
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dishonesty is coverage for assets stolen
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by an employee that happens more than we
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want to think about but it certainly
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happens and forgery is an alteration
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very much similar to the previous one is
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coverage for assets improperly
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manipulated by an employee finally on
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property coverage we have equipment
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breakdown this is a great coverage to
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have coverage for temporary and
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permanent replacement of equipment that
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fails unexpectedly there's lots of
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examples where a heating or air
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conditioning unit stops working and a
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business needs to keep running and a lot
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of these policies will actually cover a
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temporary replacement so that you can
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get your business back running and make
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sure that you don't lose income
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associated with your business being
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closed and then can help with the
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replacement of the actual item - now
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it's important to note if your heating
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and air conditioning just got old this
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is not a coverage that would would take
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care of that that's more like a
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maintenance issue something you need to
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update on your own so that's equipment
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breakdown coverage all right let's dig
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into work compensation workers
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compensation sometimes called workers
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comp or work complete for injuries to
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your own employees coverage for injuries
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to your employees now there's a coverage
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limit that's generally set up for three
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separate numbers so 100 500 101 you know
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is an example so let's break down what
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those numbers means a lot a lot of times
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that's confusing and the first number is
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the policy limit that most the insurance
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company pip will pay out for physical
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injuries to your employees while they're
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working pretty simple right the second
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is the policy limit for sickness caused
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by the workplace and that's for the
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whole claim so the second one is for the
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whole claim the policy limit for
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sickness caused by the workplace the
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third is a per person limit for sickness
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caused by the workplace so you're gonna
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have a limit per person and then a total
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limit for the entire claim caused by
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sickness sickness those are two
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different numbers so let's look at the
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example of 100 thousand five hundred
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thousand one hundred thousand see what
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that means well the first number 100 is
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what the insurance company would pay per
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physical injury they would pay no more
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than a hundred thousand dollars per
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physical injury obviously if it was less
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than a hundred would that's what we
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would pay
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we pay up to a hundred thousand it would
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pay no more than five hundred thousand
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total per sickness caused by the
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workplace or 100,000 per person for
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sickness caused by the workplace so that
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would be a one hundred five hundred 100
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situation and that would be the coverage
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limits that you would have there the
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premium is paid in kind of a weird way
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with workers compensation and employ and
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businesses get confused by this all the
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time what you pay for this coverage is
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based on two things the type of work
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your employees do which is like your
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employee category and your actual annual
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payroll how much you pay out in payroll
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the thing is that you don't know at the
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beginning of the term the policy term
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exactly what you're gonna pay out in
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payroll so you make an estimate so we
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make an estimate with you of what you
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think you're gonna pay in payroll and
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what jobs you think people are gonna do
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at the beginning of the term and we set
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a premium based on that but at the end
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there the company is going to come back
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and they're gonna audit your payroll and
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they're gonna see what the actual
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numbers were and that's where people get
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really confused and sometimes really
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frustrated if you overpaid if you paid
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for more payroll or different jobs than
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actually happen then the company will
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actually send you a refund check but if
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you underpaid if you underestimated your
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payroll or if you said someone was
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clerical when they were actually up on
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roofs doing you know risky things then
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the insurance company is actually gonna
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send you a bill and that's after the
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fact so you could get a bill and it's
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for the previous year's workers
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compensation because of the audit so
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that can be very confusing I have
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another video out there that describes
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that even more but just wanted to lay it
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out a little bit here all right last
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part is commercial auto pretty
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straightforward this is coverage for
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vehicles owned by your business vehicles
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are covered you know they're your fleet
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of vehicles it could be one vehicle it
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could be a hundred vehicles it could be
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a car it could be trucks it could be all
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different kinds of vehicle but obviously
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we're gonna cover just the fleet of
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vehicles that you your business actually
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owns there's two parts of this the first
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is auto liability this is damage and
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injuries to others by your vehicle so
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you got an accident the accident was
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your fault another
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car was smashed other people were
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injured that's where your commercial
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auto liability coverage is going to come
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into and then physical damage coverage
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this is simply for damage done to your
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own vehicle usually has deductibles
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associated with it for comprehensive and
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collision two different kinds of
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physical damage that can happen to your
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vehicles commercial auto is very state
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based so you really want to make sure
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you understand how auto insurance works
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in your state again we have other videos
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on on the details of no-fault insurance
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versus at fault insurance and things of
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that nature but commercial auto is
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something that you should understand
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your insurance agent should be
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explaining to you based on the state
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laws that you experience okay that was
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it so here's that example of our form
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our blank form I just went through
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really really quickly all the different
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coverages that are on that form
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hopefully you'll download it you'll use
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it to compare to your current insurance
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policy or talk to your insurance agent
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about it if you have questions about any
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of those specific coverages you can go
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back into this video and find my very
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quick explanation of that particular
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thing and then we've got the other one
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that has coverage examples as well again
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you can download those in the notes
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below this video okay what did we learn
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well we talked about four different
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types of business coverage we talked
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about liability coverage there's lots of
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different liability coverages and your
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business policy we talked about property
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coverage coverage for your physical
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assets workers compensation coverage
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coverage for injuries to your employees
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and finally commercial auto auto
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coverage coverage for your fleet of
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vehicles and damage that they could do
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to other people as well as damage that
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could happen to them themselves would
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you like more from our channel we would
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love to provide it for you I already
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mention it but our workers comp audit
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you can click right here and get access
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to that video we describe in detail how
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paying for your workers comp policy
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works it's a it's a video I would
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definitely recommend I recommend to all
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my clients so that you understand how
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work comp insurance works and you don't
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get burned by it we've got a great
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podcast called scratch entrepreneur
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where I interview different business
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owners and talk to them about their
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businesses talk to them about their
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successes their failures and how they
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took their business from scratch to the
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place it is right now and finally if you
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want to check more out about shine
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insurance we'd love to have you over
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our website at shine insurance com so
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that's it and as always the last steps
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in this video if you haven't done so
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already please click that subscribe
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button will get more great videos out to
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you like this video if you thought it
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helped you definitely give us a little
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shout out we'd like to know and finally
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if you think this video could help other
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people please share it with them good
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information is only great if it's shared
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with others alright this is Jeremy from
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shine insurance and until the next time
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have a wonderful day
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