Factors to Consider When Purchasing Business Insurance in Florida
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Published on: 15 November 2022
Last Updated on: 24 September 2024
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As soon as you start your business, you become vulnerable to risks. Your daily business activities can make your personal assets vulnerable if you don’t protect them.
There’s no doubt that catastrophic events can occur at any time. Simply being in business, you take on financial risk due to natural disasters, accidents, and theft.
Your company needs business insurance to protect it from ruin, no matter whose fault it is when something terrible happens.
Factors That Affect Your Business Insurance Requirements in Florida
Insurance laws vary from state to state. In Florida, the rules vary according to:
- The industry your business is in,
- The number of employees you have, and
- The types of risk exposure your company has.
For example, construction companies carry more risk than office professionals because their work is inherently more dangerous.
Florida Businesses Require Worker’s Compensation
Florida law requires businesses with more than four employees to carry worker’s compensation insurance. Construction businesses must have worker’s comp with only one employee.
However, you could still be held liable for your employee’s medical bills and lost wages, even if you aren’t required by law to carry worker’s compensation. That’s why it’s best to talk to a local insurance agent to discuss your options.
The Insurance Your Business Needs
When you started your business, you chose a business structure, like an LLC or an S-corp. Your business entity affects what kind of insurance your business needs.
Your business structure may protect your personal property from lawsuits, but it won’t protect your business against other liabilities.
When you get the right insurance, it fully protects your business from all types of catastrophes.
Types of Insurance to Protect Your Business
Aside from worker’s compensation, here are the other types of insurance that businesses in Florida may need:
- General liability– protects your company from claims made by others regarding property damage or injuries. This form of policy is also capable of saving your business from liability claims. Therefore, this business insurance is known to save businesses from going under.
- Worker’s compensation– may be mandatory in your state and protects you and your employees when injuries keep you from working. This is mandatory business insurance that the Florida government has imposed on any non-construction company with more than four employees.
- Professional liability– protects your company from errors and omissions. In other words, this form of ‘business insurance Florida’ is known to save businesses from facing legal issues and challenges. Therefore, it can safeguard your business legally.
- Commercial Auto– This variant functions like personal auto insurance but is for commercial use. In case your commercial vehicle faces legal problems or equivalent, then this form will help you safeguard your automobile.
- Tools and equipment– upgrades your general liability policy to protect your tools and equipment. In case you misplace or damage your tool, this insurance will help you recover the lost amount.
- Commercial property– protects your business’s property from damage caused by natural disasters, theft, and vandalism. This is more common in real estate businesses in Florida.
- Business owners– combines general liability and commercial property business insurance. Therefore, this insurance aims to safeguard the interests of the entrepreneur and the business.
Steps to Buying Business Insurance
Buying insurance isn’t difficult. Keep following this section to understand the effective ways of getting the right business insurance for your business.
Step 1: Risk Assessment
A risk assessment of your business will clarify what types of insurance your business needs.
Commercial property insurance can protect your business when you are in a part of Florida, subject to extreme weather events.
You can find risk management resources for Florida businesses on the state’s Chief Financial Officer’s website.
Step 2: Find an Agent
Finding a local agent who knows the challenges you are up against is crucial to getting the best coverage.
Whether in Orlando or Jacksonville, you need an agent you can trust to get you the best price.
Step 3: Shop Around
You don’t have to purchase insurance from the first company that gets you a quote. Feel free to shop around. Compare the following:
- Rates or premiums
- Benefits
- Terms
- Deductibles
- Ease of use
Easy Claims Filing with Your Local Florida Insurance Agent
Some companies make it easy to purchase insurance, but when it comes time to file a claim, they disappear. Consider how easy it is to file a claim with an insurance company before you buy.
Feel free to ask questions. Your insurance agent should be able to walk you through the claims process.
Tips for Filing Business Insurance Claims
Forty percent of small businesses end up having to file a business insurance claim.
Here are some tips to follow so that you get paid faster.
Be Prepared
There’s a reason you have insurance. It protects you, and filing a claim is easier if your paperwork is in order when you have to use it.
Also, consider using anti-theft equipment that can record incidents of theft and vandalism. Be sure to have the proper reports on hand and train your employees on how to fill them out.
Collect Evidence
When your business experiences a catastrophic event or an accident, take photos. Then, gather as much evidence as possible to present your claim.
File a Report
Don’t hesitate to file a police report if you are the victim of a crime. You should file the report as soon as possible and get a copy of your files.
Contact Your Agent
As soon as possible, contact your insurance agent. Many companies allow you to file a claim online to start the process.
Talk to Your Adjuster
After your claim is filed, you will be assigned to an insurance adjuster. Be available and prepared to discuss everything with them.
Get Quotes for Damage Repair
You can get quotes for damage repair to present with your claim. However, don’t wait because this can be one of the most time-consuming parts of filing a business insurance claim.
The Final thought
In summation, this is all you need to know about ‘Business Insurance Florida’. Therefore, if you are planning on starting a business in Florida, you need to fulfill this key parameter.
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