7 Reasons You Need Colorado Business Insurance and Types of Policies
7 Reasons You Need Colorado Business Insurance and Types of Policies
Colorado Business Insurance is Essential for Your Colorado Business
The state of Colorado is a great place to start and grow a business, but Colorado Business insurance coverage is essential for your company’s success. Here are seven reasons why:
1) Insurance Provides Financial Protection in case of Catastrophic Losses
Perhaps the most obvious reason to get Colorado Business Insurance is that it provides you with financial protection in case of catastrophic losses.
Say your business burns to the ground, a serious illness saps your ability to work, or a key employee gets hit by a bus? You will be glad that you have insurance in place!
2) Insurance Provides Peace of Mind for You and Your employees
While your business insurance policy cannot remove all the risks of running a business, it allows you to focus on doing what you do best without worrying about your bottom line.
Getting Business Insurance also provides peace of mind for yourself and your employees, knowing that they are covered in the case of a severe illness or injury.
3) Insurance Provides Security for Your Assets
Businesses are usually set up as legal entities with built-in security to separate their assets from their owner(s). However, this protection is not absolute.
If your business experiences a catastrophic loss, an insurance claim can help ensure that you have enough money to set up once again.
This protection is especially important for businesses that rely on goodwill to be successful. Goodwill is the value of your business over and above the hard assets like buildings, vehicles, machinery, etc.
If your business relies upon goodwill to be successful, Business insurance is essential because without it, the loss of your business could be devastating.
Suppose you have a successful, well-known brand name or reputation for excellent customer service. In that case, an insurance claim can help pay to maintain that goodwill by helping you rebuild and remain in business so that you can continue providing value to your customers.
4) Business Insurance is Required by Law
These days, Business Insurance is not only a good idea for your business – it’s the law. The Affordable Care Act and other federal regulations require that all companies with 50 or more employees provide health insurance to their full-time workers or face stiff penalties.
When you’re starting your business, it’s up to you whether or not to buy Business Insurance. But as your business matures and grows, state law may require that you carry certain types of insurance coverage.
If your city or town requires a permit for buildings or other structures, the permit will usually be contingent upon showing proof that adequate business insurance protection is in place.
5) Business Insurance Can Provide Peace of Mind for Your Customers and Clients
If clients are worried about being able to pay on time because they can’t get financing due to the loss of inventory from fire damage – or if customers need extra reassurance when ordering goods and services online – then Business Insurance can help provide that peace of mind even before something goes wrong.
Many customers and clients like a business to have insurance because it demonstrates that both the business owner and business are responsible and take precautions.
It is mandatory to have business insurance to work with some clients, such as the government. They require you to have at least professional liability insurance to contract with them. For example, you may need a CGL policy before getting contracts for government work, such as construction bids or contracts for services with the government.
6) You Need Business Insurance To Protect Your Professional License(s)
If you’re a doctor, lawyer, nurse, or other type of professional in your area, you need Business Insurance to protect your license. If you’re found to be practicing without the proper insurance coverage, you could lose that license.
7) Business Insurance Helps You Rebuild What You Have Built
Insurance helps ensure that even if your business fails due to unforeseen circumstances like a fire, flood, or other catastrophic loss, there is enough money left over after paying for the damage to start again.
The Different Types of Colorado Business Insurance Policies
It can be confusing when it comes to all the different types of business insurance policies. What is commercial liability insurance? What is workers compensation coverage? We will explore the main types of business insurance policies that a small and midsize business needs to be aware of. Let’s start with Colorado commercial general liability (CGL) insurance.
Colorado Commercial General Liability Insurance (CGL) Coverage
A commercial general liability insurance policy protects your company from legal liabilities such as damage caused by bodily injury or property damage. If you have employees, a general liability insurance policy provides protection against harm that they may cause to third parties on the job site. For example, if an employee slips and falls while working for you due to safety hazards in poor condition, you can be held liable for the damages plus legal fees. You can protect yourself against these situations by purchasing commercial general liability insurance coverage.
Professional Liability Insurance / Business Liability Insurance
Also known as errors and omissions coverage, professional liability insurance is necessary for businesses that provide services. If your company offers a service such as accounting, architecture, or massage therapy, you should purchase this type of policy to protect yourself from mistakes made on the job. This insurance covers financial losses caused by lawsuits brought against you by clients for errors or oversights in your work, loss of clientele due to tarnished public reputation or lack of confidence in your abilities, and defense costs if you are involved in a lawsuit related to your business.
Business Owners Policy (BOP)
The BOP is a small business insurance policy that includes multiple coverages such as CGL, business property insurance, workers compensation, and vehicle coverage. Your risk management team will help you determine the amount of deductible for each of these areas. For example, your company vehicles might be worth more than $20k but less than $100k if they are stolen or damaged in an accident on the job site; therefore, in your business property insurance policy, you can set the deductible to partial replacement value. When it comes to workers compensation coverage, employers have a legal responsibility to provide disability benefits and medical expenses to employees injured while working for them.
Colorado Workers Compensation and Disability Coverage
This liability insurance policy provides financial payment required by law when one of your employees experiences illness or injury during work hours. To help you determine how much workers compensation coverage to get, you need to assess your risk level. For instance, if you are landscaping business owners and one of your employees dislocates their shoulder while pruning trees for a private residence, the cost of disability payments can quickly add up.
What is Unemployment Insurance Tax?
According to the DORA, businesses must also pay Unemployment Insurance tax for employees to pay unemployment insurance benefits when they lose their jobs. This coverage does not provide income for the employee but only pays benefits to eligible employees.
The employer pays Unemployment Insurance tax based on each employee’s taxable wages as reported in a quarterly payroll tax return for which taxes are due and payable upon filing with the director.
Are you searching for an “insurance small business”? We have great small business insurance policies. Give us a call and talk to one of our experts at Facetime Insurance!
Commercial Business Property Insurance
Commercial property insurance protects your company’s physical assets from various threats, including fires, explosions, burst pipes, and theft. While property insurance doesn’t typically cover natural disasters like earthquakes or flooding, adding those to the policy may be worth considering if they are a potential threat to your business space. Flood insurance for the business property can be purchased through the National Flood Insurance Program at competitive rates.
Landlord Coverage for Rented Property
If your company rents property to operate a business, you need landlord insurance. This coverage provides financial protection from accidents that happen on the rented property and any legal liability issues that might arise from injuries or damages produced by third parties due to factors such as faulty stairways, slippery floors, or broken air conditioning equipment.
Contractor & Artisan Coverage
This form of insurance helps you get compensated for work that is performed but not paid for. For example, suppose you’re a graphic designer. You invest time creating a custom website banner ad or brochure design for a company that decides to go in another direction with the marketing campaign. In that case, you can receive payment by filing a claim on your contractor policy.
Storefronts & Main Street Businesses
This type of small business insurance provides protection for neighboring businesses that share walls or adjacent storefronts. Much like landlord insurance, this coverage helps pay for damages caused by a third party or an unintentional accident on the premises.
Home-Based Businesses Coverage
If you run a business out of your home, you need to protect yourself from losses. This coverage provides financial protection from harm that might happen on the premises and legal liability costs associated with damage or injury created by third parties.
This form of insurance helps you pay for the cost of repairing or rebuilding your property after it sustains serious damage from a natural disaster, such as floods, mudslides, tornadoes, and earthquakes.
Excess Liability Insurance Policy
An excess liability insurance policy will come into play when the other insurance is insufficient to cover the liability on an accident or damage conducted by a third party. This gives you financial support in case of any significant lawsuits that might arise from incidents that involve more than one insurance company.
Colorado Business Auto Insurance (Commercial Vehicle Coverage)
Businesses require commercial auto insurance for those vehicles used to transport goods and/or employees between different work sites. You can get multiple coverages under one policy, such as physical damage, medical payment benefits, and uninsured motorist protection, along with higher liability limits. If the business or vehicle owner use leased vehicles, also known as operating leases, that are not owned by your company but being driven by an employee of your company, then you will need a commercial auto insurance policy for those vehicles as well.
Business Interruption Insurance Policy
A Business interruption insurance covers losses from a sudden and unexpected event such as an explosion, fire, or flood in your business.
The policy provides money to pay for operating costs and expenses until the business can reopen. It also pays losses sustained by payrolls while the business is not operational. A loss-of-income rider or stand-alone policy can provide extra income assistance if you need help.
Business Insurance is Essential
Yes, many people believe that insurance is a necessity. This is because insurance gives people a sense of security.
Individuals want to know that they will be taken care of if something goes wrong, whether it be a health issue, a robbery, a fire, or any other unexpected circumstance. Without insurance, many people would be apprehensive about what would happen to them in these situations.
Insurance is necessary because not everyone has the funds to pay for health procedures or car accidents. The idea of insurance is simple–not everyone needs health insurance, nor do they get into an accident at the same time.
Those who don’t need the insurance but still have it help pay for those who file claims. Insurance companies invest the money their receiving to earn more funds to pay for claims.
Insurance is necessary. Otherwise, the average person wouldn’t be able to pay for damaged property or hospital visits. Without insurance, Society would be very unhealthy riding bikes or taking the train.
And in all things, developing trust is very important. This, of course, adds to the fact that many people shy away from commercial insurance simply because there is a shortage of reliable insurance companies.
However, this does not apply to Facetime Insurance, which handles every client with care and professionalism.
The city life is full of unexpected issues. Why would anyone make the situation worse by avoiding the very thing that Would help in that time of need?
With Facetime Insurance living on the edge is no longer necessary. The peace of mind that’s deserved by every human being is held in one simple phone call to a Facetime licensed Insurance agent call today.