Any business with two or more employees is required by law to carry Worker’s Compensation. Workers Compensation covers your employees in case they will have a job related accident or injury. The accident does not have to occur at a job site as long as it occurs within the employees’ work hours and related to work, it will be considered a Workers Compensation claim Anybody on your payroll is considered covered under your policy and if you do not have a policy, your company or you as business owner will be responsible to pay for any treatment from injuries that occurred during work hours if the injured worked for your company. Workers Compensation policies can be costly so work with a well established agency to be sure you will get the best and adequate coverage provided.
While Workers Compensation covers the employees, General Liability covers you and your business against damage caused by you and your employees when performing the job. The damage can occur from an accident or from negligence. An example can be that you have a restaurant and a client ends up being food poisoned or a client slips and falls on the wet floor. Instead of going after you or your business, the client can file a claim against your General Liability policy and the carrier providing the policy will work with the claimant to help with any hospital bills or other expenses related to the claim. Not carrying General Liability have put businesses or private parties in bankruptcy and serious financial problems. Unlike Workers Compensation, it is an affordable coverage that is strongly recommended by BVBC to carry.
A regular General Liability policy usually carries the limit of $2,000,000 in General Aggregate which means that is the maximum amount an insurance company will pay during one policy period. An Excess General Liability also referred to as Umbrella Policy is an add-on that just as the name extends provide additional coverage to one or more policies. The extended coverage is usually for the General Liability, but it can just as well be extended to the Workers Compensation and/or Commercial Auto policy. The more common amount of coverage is either $1,000,000 or $2,000,000. If you carry $2,000,000 in General Aggregate on your General Liability policy and you have an umbrella for the same amount, you really carry $4,000,000 in total.
Commercial Auto is different from Personal Auto. The most important differentiator is that the coverage only applies to work related accidents and occurrences. Many larger contractors will require their sub- contractors to carry certain single limits in Bodily Injury Liability. The most common limits are either $500,000 or $1,000,000. Many restaurants or stores who do delivery do many times have similar requirements from their clients and a decent limit in BVBC’s opinion starts at $500,000. It does not take much in an at-fault accident to exceed $500,000 if you are unlucky.