Type of Coverage Purchasing Decision Timing of Purchase Premium Basis Are you covered?
Risk
Management Products For A New Business
Workers’ Compensation:
Provides medical, disability and death benefits to employees
injured in the course of their employmentUsually required by state
Immediately or upon hiring the first
employee
Rate applies per $100 of payroll wages,
based on job classification
General Liability:
Protects company from third party claims from bodily injury
or property damage arising out of business operation Required by Landlord Immediately upon the establishment of
a business.
Based on square footage
Property:
Insures a company against direct losses to equipment,
computers, furniture, fixtures, leasehold improvements, etc. resulting
from fire, storms, theft, and other perils. Required by investors
Immediately upon the establishment of
a business.
Based on the total replacement value
of fixed assts, work in process and inventory
Key Person Life:
The company becomes the beneficiary in the event of a
death to a critical employee.Pro-active business practice
Usually immediately
Based on the general health, lifestyle,
and the age of the individuals
Non-Owned & Hired Automobile Liability:
Issues against losses resulting from bodily injury or
property damage arising from use of rented or employee owned vehicles.
Pro-active business practice
Usually immediately as part of a “package”
policy
Based on the number of employees
Contingent Business Interruption/Extra Expense:
Provides loss of income, continuing operating expenses
and the expense incurred resulting from ----------------------------supplier,
contract manufacturer.Required by state
Within the first few years,
The sum of the losses, operating expenses
and extra expense incurred
XYZ:
---------owned or leased vehicles and third party claims
alleging bodily injury and property damage. Required by suppliers
When a company leases or buys a vehicle
Year/Make/Model
Transit:
Covers direct to business personal property, including
raw material, work-in-process finished goods while enroutePro-active business practice
Within the first few years
Maximum value per shipment
Crime:
Covers the losses due to employee theft of money or property.Pro-active business practice
Within the first few years
Based on the number of employees
Employment Practice Liability:
Protects individual directors, officers and the corporation
for claims made by your employee or a former employee alleging discrimination,
sexual harassment, or wrongful termination. Pro-active business practice
Within the first few years
General employment practices & compliance
with federal and state laws
Directors & Officers:
Covers claims arising from actual or alleged wrongful
acts allocated to the companyPro-active business practice
Within the first few years
Size and scope of the company.
Fiduciary Liability:
Protects the trustees of the corporation for claims alleging
breach of fiduciary responsibility in the administration of employee
benefit plans. As soon as ERISA subject plans are implemented
Size and scope of the plan and the plan
assets
Difference in Conditions:
Covers company for direct losses to business personal
property from perils excluding those under “Package”
policy, most notably earthquake and flood.Required by landlord
As applicable
Total replacement cost value
Patent Infringement:
Covers third party liability, defense and indemnity costs
incurred by the company in suits claiming patent infringement.Required by investors
As applicable
Product class
