What are the requirements for business insurance in New York?
The requirements for business insurance in New York depend on the type of business and location. If your employees drive a vehicle, they’ll need auto insurance that meets the state’s minimum liability limits. These limits won’t necessarily provide adequate coverage, so it’s worth considering higher limits, especially if your employees drive high-value vehicles or are more likely to be involved in an accident.
If you own or lease a commercial property, you should also consider its coverage. This includes protection against natural disasters and theft as well as liability insurance to cover customers who slip and fall on your property or otherwise get injured due to your negligence. If you hire employees, you may want to consider worker’s compensation insurance.
What are the types of business insurance in New York?
The most common types of business insurance policies are:
General liability
This type of coverage will protect your business from claims resulting from injuries or damages that happen on your business’s premises. General liability insurance covers bodily injury, personal injury, and advertising injury claims. It also can cover medical expenses and damage to another person’s property.
General liability insurance doesn’t cover professional mistakes, known as errors and omissions (E&O), or worker injuries, which are covered by professional liability insurance and workers compensation insurance. If you need those coverages, talk to an agent about a Business Owners Policy (BOP).
Workers compensation
In most states, employers are required by law to carry workers’ compensation coverage. Workers comp helps pay for medical care and lost wages for employees who have been injured or become ill on the job. This type of coverage is important because it keeps employees safe and helps protect you from lawsuits if an employee gets hurt.
Workers’ compensation coverage normally excludes: Independent contractors and Volunteers (unless they are part-time or seasonal employees)
Professional liability
Also called errors and omissions insurance or malpractice insurance, professional liability insurance protects your business if you’re sued for negligence or mistakes in your work. This type of coverage is important for companies that provide professional services because it can help pay the cost of legal defense, court fees, and any settlements or judgments against the business if it loses a lawsuit.
While it’s important to have professional liability insurance, knowing what is excluded is important because the exclusions will affect what claims you can make against the policy.
Here are some examples of the most common exclusions:
- acts of fraud or dishonesty
- claims that occurred before you bought the policy
- claims that involve bodily injury or property damage (this usually requires separate coverage)
Product liability
The policy can help protect against claims of injuries caused by a defect in one of your products. Even if the product was designed and manufactured correctly, but there’s still a defect that causes injury, this type of policy helps protect businesses from the high costs associated with defending such claims.
Product liability normally excludes:
Contracts – Any loss arising from the performance or failure to perform any contract or agreement.
Designs – Any loss arising from the design or specifications of any property, including any product or part thereof, whether prepared by you or provided by others.
Commercial Auto insurance
Commercial auto insurance is essential if you use vehicles in your business. Whether you have one vehicle or several, commercial auto protects if an accident occurs while employees drive on company time and in company vehicles. If you have cars leased to your business or owned by the business, they should be listed under your commercial auto policy. Commercial auto also covers accidents involving rented cars and employee-owned vehicles used for company business.
Commercial Auto insurance normally excludes coverage for the following:
Intentional injury or damage
Ordinary wear and tear of the insured vehicle
Cars rented to others for more than 30 consecutive days
How much does business insurance cost in New York?
Many factors can affect your business insurance cost, including the company’s size and industry. Here are five factors that play into your business insurance rate:
- Company size: Businesses with more than a few employees may need workers’ compensation coverage, which protects employees who are injured or become ill from working conditions. You may also need to purchase other types of liability coverage, such as professional liability insurance or product liability insurance.
- Your business location: if your business is located in a high-crime area, you may be required to pay higher premiums than businesses in safer areas. That’s because there’s a greater chance of your business experiencing theft and vandalism in a high-crime area.
- Claims history: If you have a history of filing many claims, then your premium will likely be higher due to the increased risk of future claims. One way to reduce your premiums is to avoid filing small claims by paying for less expensive repairs out of pocket.
- Coverage limits: Your insurance coverage should reflect the value of your property and assets. If your coverage limits are too high, you’ll pay for the protection you don’t need. If you undervalue your assets and choose low limits, you may need to pay out of pocket if a claim is approved.
- Business Activities: a roofing contractor faces more risk than an office administrator because they work on tall structures and must ensure employees use proper safety measures while working. Because roofing is more dangerous than working at an office desk, roofing contractors will pay more for insurance than office administrators.
How to choose the best business insurance in New York
There are many options available, and it can be difficult to know which one is right for your business. Here are some tips on how to choose the best business insurance:
- Consider how much coverage you need: Every business is different, so every business needs a different level of insurance coverage. Some businesses invest in relatively inexpensive insurance policies that cover the basics, and others purchase comprehensive policies that cover a wide variety of needs.
- Check on your local laws: Many businesses are required by law to hold specific levels of insurance to operate legally. For example, many states require small businesses to carry workers’ compensation insurance, which covers medical expenses if an employee gets hurt on the job.
- Shop Around: Get a few quotes from different insurance companies and look at what they have to offer. This gives you a better chance of finding the best business insurance for your needs. Keep in mind, though, that you shouldn’t just choose the lowest price.
- Experience: While you may be inclined to choose an agency based on proximity or price, consider choosing one with experience in your industry. Businesses have different needs, and your agent must understand those needs.
- Know what’s included and excluded: Read through product disclosure statements carefully and make sure you understand exactly what you’re paying for. For example, some insurers may limit the amount they payout if you experience a burglary – or only cover damage where there was forced entry. If this concerns you, be sure to check whether your policy covers it before signing on the dotted line.