Most of us would never say we love our insurance. In fact, most clients don’t even read their business insurance policy. Maybe after you read this story you may have a different opinion.
A small retail gift store recently came to love their business insurance policy. The store stocked and sold locally made candles as part of their product offerings. The store sold one of those candles to a customer who used it the same day. The candle had a defect that caused the base to overheat, which started a fire, and the customer’s home burned to the ground. The customer’s homeowner’s insurance paid the $350,000 claim, and then sued the shop owner. The basis of the claim was there was a product defect in the candle which caused the loss. The shop owner then went to the candle maker, but the candle maker had no insurance. The shop’s business insurance paid the claim, and the shop was able to stay in business, because of the product liability coverage found in their policy.
Know Your Business Liability Coverage
- Bodily Injury--Bodily Injury to a third party.
- Property Damage--Damage to a third party’s property (equipment building etc.).
- Personal Injury--Injury to the mind or emotions, as opposed to an injury to property.
- Advertising Liability--Damages arising out of advertising, libel, slander, or invasion of privacy.
- Products and Completed Operations--Liability arising out of the Nonprofit’s products or business operations and services conducted, excluding professional services.
- Premises--Covers liability arising out of injury to third parties while on your premises.
- Medical Payments--A general liability coverage that reimburses others, without regard to the insured's liability, for bodily injury while on your premises.
You should also pay attention to the exclusions in your business liability insurance policy. Some of the common exclusions are:
- Workers’ compensation
- Directors and officers liability
- Professional services
- And more
Many of the exclusions can be added or purchased under a separate policy. You haven’t had a fire or a flood, been robbed, vandalized or sued, and your worker safety record is spotless – but your insurance costs keep mounting. And if you have had to file a claim or two, you may be lucky to get coverage at any cost.
Without a doubt, this is a tough market. And when times are tough, you need the best. You need Leap / Carpenter / Kemps Insurance Agency. As Merced County’s largest locally owned agency, Leap / Carpenter / Kemps has access to policies that other agencies just can’t write.