The Facts About Business Insurance
Commercial Bonds

Commercial bonds are designed to safeguard consumers by ensuring that businesses adhere to consumer protection laws. Commercial bonds are also called, “no-contract surety bonds” and come in many forms, each of which are particular to specific industries or sectors of business. These bonds are sometimes prerequisites for obtaining licensures and the cost can vary based on the terms, associated risk, and the business’ professional and financial history.

Contract Bonds

To mitigate the risks associated with construction projects, project owners and investors often require that contractors are properly bonded. As a contractor, being bonded helps establish your company as both reliable and dependable—and that can be great for business.

There are four main types of contract bonds:

  • Bid Bond – Assures that the contractor intends to fulfill the responsibilities associated with the submitted bid and has the ability to provide performance and/or payment bonds.
  • Performance Bond – Assures that the project owner is protected from financial loss if the contractor fails to fulfill contractual obligations.
  • Payment Bond – Assures that the contractor is responsible for the cost of supplies and payments due to subcontractors.
  • Maintenance Bond – Assures that the contractor will maintain facility upkeep and repairs for a designated amount of time.
Court Bonds

If you are involved in a court case as a plaintiff, defendant or fiduciary, the court may require you to be properly bonded. Court bonds protect the parties involved and the court against losses associated with the outcome of a case. There are two main types of court bonds: judicial bonds, which apply to civil cases, and fiduciary/probate bonds, which apply to court-appointed executors or trustees to ensure they comply with the terms of a will or trust.

Contact Crouch Insurance Service by calling 703-591-8300.

General Liability

Owning a business leaves you open to a myriad of liability exposures, and, if someone is hurt while on company property or by the product you sell, your assets could be at risk. Commercial general liability insurance pays medical costs, legal fees, and settlement awards. If you rent or lease your commercial space and cause damage to the property, liability insurance covers repair or replacement costs. Likewise, this type of coverage provides protection in the event of libel or slander claims made against you. Liability protection can be bundled with commercial property insurance to form a business owner’s policy (BOP), something that Crouch Insurance Service strongly recommends for small businesses.

Professional Liability

Service providers such as doctors, lawyers, printers, beauticians and accountants can be held liable for failure to properly perform the services they offer. For protection against negligence and misrepresentation claims such as these, professional liability insurance is needed.

Cyber Liability

With the technological age has come a unique set of exposures for business owners. Protecting your clients’ and customers’ personally identifiable information (PII) is a responsibility that can be upset by a single data breach. PII includes Social Security numbers, credit card numbers and passwords.

Employee Benefits Liability

This type of coverage protects you from claims involving errors in the administration of a pension or benefit plan. For example, employee benefits liability will protect you if you fail to add a new employee to a group health plan that they elected to join.

Fiduciary Liability Insurance

This type of coverage protects you against claims that involve allegations of the duties outlined in the ERISA law, such as failure to make prudent investments.

Umbrella/Excess Liability

While a general liability policy is paramount to keeping your business assets secure, it has limits. Umbrella insurance—also known as excess liability coverage—extends your general liability coverage and protects you from paying out of pocket for excess amounts owed.

Contact Crouch Insurance Service by calling 703-591-8300.

Premium Calculations

Workers’ compensation premiums are calculated based on a variety of factors, including statistical information collected by the National Council on Compensation Insurance (NCCI). This information classifies businesses as low-risk or high-risk, which is taken into consideration when premiums are calculated. Payroll and policy loss data is analyzed to form an experience modification (ex-mod) factor which compares an employer’s loss experience to the average loss experience of a similarly sized company in the same industry. Essentially, the ex-mod factor is based off of the amount and amount of claims your business has incurred.

Workers’ compensation protection was designed to not only safeguard workers when they are injured on the job, but it also protects employers from employee lawsuits that would otherwise put them out of business. This type of insurance mitigates the risks associated with lawsuits against employers and simultaneously provides security for workers in the event that they are injured on the job. Contact Crouch Insurance Service to learn more about how our agency can help your business reduce workers compensation costs.

Cost Reduction

Crouch Insurance Service understands that cost control and reduction is the only way to keep workers’ compensation costs reasonable for business owners. Developing a comprehensive safety program for your employees is the first step in reducing workers’ compensation costs. Likewise, designing a return-to-work program will help ease injured workers back into their daily routines at a safe pace. Remember that claim response is also important; ensure that claims are reported in a timely manner and corrective actions are taken to avoid similar claims in the future.

Contact Crouch Insurance Service by calling 703-591-8300.

What Does Commercial Property Insurance Cover?

Consider everything that your business needs to operate and the amount of money that is at stake, should property damage result in business interruption.

Property insurance for your business will cover repair or replacement costs of property and the lost revenue resulting from damage to the following items:

  • Your building’s structure
  • Fencing, walkways and landscaping
  • Outdoor and indoor signage
  • Furniture
  • Equipment and machinery
  • Inventory
  • Valuable documents
Part of a Comprehensive Business Owners’ Policy (BOP)

Commercial property insurance can be purchased as its own policy, or as part of a BOP. BOPs can also include commercial liability protection and business interruption insurance. They are often designed to work alongside professional liability insurance and commercial auto insurance, which are typically purchased as separate policies.

Discounts

The key to making your commercial property insurance work for you is to know how to keep premiums low while ensuring you have complete coverage. Working with a reputable independent insurance agency such as Crouch Insurance Service is the first step. We work with a wide variety of insurance carriers to compare rates and get you the best deal; bundling various types of coverage with the same carrier can often result in discounts. We also recognize that an accurate asset assessment is paramount to correctly estimating the amount of coverage you’ll need.

Contact Crouch Insurance Service by calling 703-591-8300.

  • Liability: Provides protection if you are held liable for injury caused to another person or damage caused to his or her property
  • Physical damage: Provides compensation if your vehicle is damaged
  • Medical Payments: Covers medical expenses for you and the passengers in your vehicle in case of accident or injury
  • Uninsured motorist: Provides protection if you are involved in an accident with an uninsured or underinsured driver
Who Needs Commercial Auto Insurance?

It is a common misconception that you don’t need commercial auto insurance if you use your own personal vehicle for business purposes. In fact, commercial auto coverage is needed even when you use your own car on company time. Commercial auto coverage is needed in the following circumstances:

  • If a vehicle is used for the pick-up or delivery of goods
  • If a vehicle is used for individual transportation, such as limousines, buses or taxis
  • If a vehicle is owned or leased by a business, corporation or partnership.
  • If employees use their own vehicle for business on a regular basis
  • If a vehicle is equipped with certain specific fixtures utilized for plowing, catering or racing.

For more information on how Crouch Insurance Service can help you, call 703-591-8300.