Small and medium-sized enterprises account for more than 95% of all businesses in New York (NY). Similar to other businesses across the U.S., these businesses face myriad challenges, including, among others, inadequate funding, natural disasters, cyber threats, theft, lawsuits, third-party claims, and bodily injuries. This means that businesses operating in NY should carry the right business insurance coverage.
Here’s a look at the types of insurance coverages that are essential for your NY business.
Business Owner’s Policy
Per the Insurance Information Institute (III), this insurance policy basically provides a combination of property damage and liability protection in one place. It can also cover business interruption, theft, and bodily injuries. Take note that you can also add endorsements such as data breach insurance, workers’ comp, and professional liability insurance to your business owner’s policy if you want more comprehensive coverage.
Commercial Property Insurance
As the name implies, commercial property insurance covers your business property from theft, vandalism, and damage from natural disasters. For instance, if a fire accidentally breaks out in your office, burning down your computers, furniture, and products, this policy will pay for the resulting costs and save your business finances. It also covers damages to the building. Without it, you will have to pay for expensive repairs and replacement costs out of pocket, and this will most likely harm your business finances. With this in mind, ensure you purchase adequate property insurance to protect your assets.
General Liability Insurance in NY
Irrespective of the safety measures in place, you will at some point experience bodily injuries, property damage, and even reputational harm to your business. For instance, just one advertisement error can attract an expensive lawsuit that may affect your business finances significantly. Other incidences that may attract third-party lawsuits and claims include, among others, bodily injuries, property damage, and defective products. Thankfully, general liability insurance in NY is a policy that covers third-party liability costs such as legal expenses, medical costs, claim settlement, and even death benefits in case someone’s life is lost.
Commercial Auto Insurance in NY
Every year, several road accidents happen in the U.S., causing loss of lives and damage to vehicles. To give you an idea, in 2019, road accidents in New York caused more than 930 fatalities, according to the National Highway Traffic Safety Administration (NHTSA). This means that if you own any business vehicles, you should carry the right commercial auto insurance policy in NY. While this policy will not prevent accidents involving your fleet vehicles, it will pay for resulting damage in case of a crash. Specifically, this policy covers the resulting liability costs, medical expenses in case of bodily injuries, death benefits, uninsured motorists, as well as repair or replacement of the damaged vehicle.
Workers’ Compensation Program
The state of New York requires you to have workers’ compensation insurance in NY for your employees, including part-time workers and family members working at your business. According to the NY Workers Compensation Board (WCB), this policy pays for lost wages, medical expenses, funeral expenses, and death benefits in case an employee gets injured, sick, or dies at work. Apart from protecting your employees’ physical, emotional, and financial health, workers’ compensation insurance also shields your business from employee lawsuits and the loss of your license due to legal non-compliance. It also helps increase workplace productivity by keeping your employees motivated.
Boilers and Machinery Insurance
This insurance policy is necessary if you own heavy machinery and boilers in your business. According to the NY Department of Financial Services (DFS), the boilers and machinery insurance protects the following equipment/assets:
- Boilers, heaters, or other fired pressure vessels
- Engines, pumps, turbines, compressors, or wheels
- Any equipment that generates or uses electricity
- Unfired pressure vessels
- Containers and pipes connected to boilers and machinery
Inland Marine Insurance in New York
Inland marine insurance in New York typically covers a wide range of specialized equipment, including, among others, medical equipment, photography equipment, and solar energy equipment. While coverage varies from one insurance provider to another, this policy complements the property insurance by covering some of the items in transit as well as those in temporary storage. In essence, you should purchase this coverage if your business operations involve frequent shipping of high-value equipment and products, which are often excluded from the primary property insurance policy.
Cyber Liability Insurance in New York
Apart from ransoms and data restoration costs, cyberattacks also cause loss of income by interrupting business. If you conduct your business operations using digital devices or store clients’ data, your network system is at risk of cyberattacks and data breaches, which can bring your business to its knees. That said, be sure to purchase the right cyber liability insurance in New York to protect your business. This policy basically pays for the costs resulting from a cyberattack, including third-party claims, crisis management, and notification costs. Additionally, you can mitigate the risk of cyberattacks in your business by:
- Updating your systems regularly
- Training your employees on cyber safety
- Using a strong firewall in your system
- Updating passwords frequently
If your business is located in New York, you should protect it with the right business insurance. When you’re ready to find reliable insurance for your business, the team at Premier Risk, LLC is here to help! We serve Long Island and neighboring cities in New York. To get started, contact us today.