Protecting your business from the various risks that it may encounter will require you to invest in a commercial insurance policy. However, these policies can be extremely complicated, which can make it hard for some individuals to make smart choices. If you are needing to invest in a policy for your enterprise, learning about the following couple of myths should help you to make smarter choices for meeting your insurance needs.
Myth: Cost And Coverage Are The Only Two Factors For Choosing A Commercial Insurance Plan
Choosing an insurance plan can seem like a difficult or confusing task due to the various factors that will need to be considered. Unfortunately, some people may make the mistake of only considering costs and coverage amounts, which can cause them to overlook some other important differences between plans. For example, insurance policies can vary greatly in the way that they calculate compensation for damages. While some policies will provide the money needed to replace the damaged items, other policies will only provide the market value of the damaged item. To ensure that your enterprise receives the compensation needed for replacements or repairs, you should always choose a policy that provides replacement cost coverage as opposed to cash value coverage.
Myth: Worker's Compensation Coverage Is Included In Standard Commercial Insurance Policies
Protecting your employees from the financial repercussions of workplace injuries is a legally mandated requirement for employers. Unfortunately, if you make the mistake of assuming that you have this coverage, you may find yourself fully liable for the injuries a worker suffered as well as hefty fines from the government. As a result, you will need to purchase a separate workers' compensation plan to ensure you are protected against these risks. The costs for these plans can vary wildly depending on the pay and number of your employees, as well the working conditions. Luckily, it is possible for you to obtain detailed quotes for providing this coverage to your workers, which can help you to better evaluate the plans from competing insurance companies.
Protecting your company with insurance is a critical step in protecting yourself from liabilities. However, individuals that are not fully informed about these policies can find themselves liable for unanticipated damages. Making sure that you know the truth behind the myths that workers' compensation coverage is included in standard commercial policies and the need to choose a plan that offers replacement value will help you to ensure your enterprise is kept safe from these avoidable problems and oversights.
Contact a local provider, such as Paris V Mastroddi, Inc, for further assistance.
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