It may be the second smallest state in the country in terms of square miles, but don’t let Delaware’s small size fool you. “The Small Wonder” state currently boasts the second highest state ranking in terms of civilian engineers and scientists (according to percentage of workforce) and patents issued to individuals or businesses (per 1000 workers). It was also the first state to ratify the constitution. Delaware currently ranks as the sixth most densely populous state, which makes it a great place to start and grow a business in Delaware. Whether seasoned or startup, small business owners in Delaware are encouraged to learn about business insurance in Delaware.
Standard Business Insurance Coverages in Delaware
Although it consists of multiple coverages, a business owner’s insurance policy, or BOP, is a single comprehensive small business insurance policy. A BOP offer the Delawarean business owner convenience because it brings together general liability and property insurance in one policy. Under the property insurance component, your buildings and equipment are covered, while legal liabilities are covered under the general liability portion. One of the most important benefits of business owners insurance is that it acts to transfer risk away from the Delaware business owner to the insurance carrier. Take a look at a few of the typical claims afforded protection from business owners insurance in Delaware: employee dishonesty, equipment breakdown, property claims, legal liability claims, fire income loss, personal injury, valuable papers, professional liability claims, and money and securities. Additional endorsements can be added, depending on the specific risks a Delaware small business owner might face.
Developed to protect Delaware small business owners from a unfortunate financial loss arising from negligent errors, omissions, acts, or all three, general liability insurance is a must have risk protection. Whether caused by you or your business employees, these acts result in physical injury or property damage. Liabilities from products sold, accidents on the insured premises, or contractual liabilities are all examples of the types of exposures covered under general liability insurance in Delaware. Keep in mind that the injury or damage could be unintentional. General liability insurance in Delaware may be a standalone insurance policy or combined with one or more other policies.
A package policy is another type of insurance policy for the Delaware small business owner. It combines two or more types of insurance into one package. A typical package policy in Delaware combines general liability insurance (described above) and commercial property (described below). Nevertheless, a package policy can be constructed to include virtually any type of coverage, depending on the needs of the Delaware business. A package policy is advantageous for the Delaware small business owner because it provides considerable flexibility to customize a unique policy designed for the select needs and risk exposures of the Delaware business.
If you own commercial property in Delaware, then you need Commercial Property Insurance. While commercial property insurance covers your building structure, equipment, and inventory, it also covers your office furniture, valuable papers, personal property, and supplies. Commercial property insurance protects Delaware small business owners against fire, theft, and vandalism, in addition to a number of weather hazards, such as lightening strikes, windstorm, hail, and other natural disasters. Commercial property insurance is recommended for a variety of Delaware small businesses, including retailers, service firms, manufacturers, and not-for-profit enterprises.
If you have hired employees for your Delaware business, workers’ compensation insurance is imperative. It’s designed to ensure payment to employees against employee occupational illnesses and work-related injuries. Workers’ compensation insurance in Delaware is a no-fault, state-mandated insurance system set up for workers who sustained injuries or an illness while working on the job. Because the state of Delaware requires small, medium, and large businesses with employees to carry workers’ compensation, civil penalties and severe fines can result if you don’t carry it. Through workers’ compensation insurance in Delaware, employees are compensated for income lost from employment and health care coverage in exchange for the Delawarean employee not filing suit against his small business employer.
Whether your business owns just one car, van, or truck — or multiple vehicles — commercial auto insurance in Delaware is crucial protection. Commercial auto insurance in Delaware administers financial protection to business owners and their fleet drivers by providing coverage for a organization’s use of cars, trucks, or vans in the course of its operations. But commercial auto insurance doesn’t simply reimburse for vehicle damages and medical costs resulting from vehicular accidents. It also provides coverage for things like vandalism and hail damage too. In addition to employee-owned vehicles used for your Delaware small business operations, coverage may include vehicles rented, leased, hired, or owned by your employees. That’s why it’s highly advised that Delaware businesses purchase a commercial auto insurance policy if employees use their own vehicle to carry out work-related tasks for the business — this is known as as non-owned commercial auto insurance.
Designed to fill in the gaps in your business insurance coverage, commercial umbrella insurance in Delaware offers extra protection. For instance, your existing liability policies may not cover all expenses or may have limits on coverage should an unfortunate or unforeseen event occur. Commercial umbrella insurance in Delaware is a vital part of your sound business insurance plan that fills in the holes and covers certain exclusions in your primary business liability coverage. Umbrella insurance in Delaware is a excellent way to provide added protection against property damage, bodily injury, or certain other liabilities.
Some Additional Business Insurance Coverages in Delaware to Consider
Errors and Omissions insurance policies, also referred to as E&O, protect Delaware small businesses and individuals from certain litigation and claims made by clients or customers. In particular, coverage relates to claims for inadequate work, negligent acts, errors, and oversights made while carrying out business operations that resulted in a loss of income or productivity on the part of the customer or client. Errors and Omissions insurance covers court costs and attorney defense costs, as well as settlements in accordance with the terms of the insurance policy. Similar to certain professionals in the health care field needing malpractice insurance, Delaware small business owners who provide services, including consulting advice, (through subcontractors or directly), need errors and omissions insurance in Delaware.
Professional liability insurance in Delaware helps protect business professionals, such as general contractors, certified public accountants, and attorneys, from enduring the complete impact of legal costs needed for defense against a claim of negligence, error, failure to perform, or omission made by a client. Professional liability insurance provides coverage awarded damages from claims too. The coverage focuses on the client’s financial loss from these types of alleged claims with respect to a product sold or service rendered by the Delawarean professional. Professional liability insurance may provide claim coverage, even if it is caused by negligence. Some professions require this type of insurance, like the legal and medical professions, but professional liability insurance in Delaware is also required by the terms of a contract in other professions.
Employment Practices Liability Insurance (EPLI) provides Delaware business owners with insurance protection against occupation-related allegations, like wrongful termination, inequitable promotion claims, emotional distress, discrimination, breach of contract, mental anguish, wage law violations, defamation claims, sexual harassment, false imprisonment, libel, slander, and negligent hiring to name several. Employment practices liability insurance in Delaware centers around several laws and acts brought under Title VII of the Civil Rights Act of 1964, Age Discrimination in Employment Act, and Family and Medical Leave Act — all of which the Equal Opportunity Employment Commission (EEOC) enforces throughout Delaware.
Fidelity Bonds in Delaware
Fidelity bonds are another common kind of insurance purchased by a Delaware small business employer. It’s designed to protect against financial losses, which can occur as the result of fraud, theft or embezzlement by one employee or a group of employees. Because receiving funds back from employee dishonesty practices is virtually unheard of due to the money already being spent, fidelity bonds exists an important safety precaution for the Delaware small business owner who would otherwise have to absorb such monetary losses. While it’s prudent to have safeguards in place, such as employee hiring screening, internal controls, and worker supervision, sometimes further protection is needed. Losses suffered from small business employee thefts of money, securities and property are all covered under fidelity bonds insurance in Delaware. There are three common types of fidelity bonds in Delaware: business service bonds, standard employee dishonesty bonds, and ERISA bonds.
Surety Bonds in Delaware
A type of binding agreement or contract among three parties: the principal, obligee, and surety (insurance company) is known as a surety bond. Surety bonds in Delaware represent a promise pay a certain amount should a another Delaware party not meet an agreed upon obligation. A surety bond in Delaware protects the recipient against a monetary loss in the event the contract doesn’t get carried out. On the other hand, the surety company takes on the liability for nonperformance. In order to obtain financial compensation, a surety bond is generally needed. Delaware business owners may need a surety bond to promise to pay utility bills, while a general contractor may need to post a bond to obtain a employment contract or qualify for licenses. Surety bonds are used by financial brokers, notary publics, fitness club owners, car dealers, medical suppliers, and others. That said, they are most commonly seen throughout the construction industry. Because of the diversity of small businesses that utilize and need these bonds, there are a myriad of types and features of surety bonds in Delaware.
Whether you’re operating a plumbing business in Wilmington or a restaurant near Dover, Delaware small business owners need to safeguard assets in the event of an unforeseen event, such as a fire, theft, or weather disaster. While standard business insurance will cover many of these unfortunate occurrences, some situations may be excluded from standard business insurance. Accordingly, additional Delaware business insurance coverage may be needed. Delaware business owners know that a sound business insurance plan customized to the unique needs of their business is an important factor of their long-term success.