Ranked seventh in the 2011 CNBC Ranking of America’s Best States for Businesses, eighth for quality of life, and tenth for education, Minnesota is a state that is accustomed to successful small businesses. Therefore a variety of business insurance options are available in Minnesota. With a state of three nicknames, “Land of 10,000 Lakes”, “The Gopher State”, and “The North Star State”, Minnesota also has more Fortune 500 companies than any other state in the country. It’s also a leading grower and processing location for corn, wheat, and alfalfa. The trade center for all of the Midwest is located in Minnesota’s very own Minneapolis and St. Paul, Minnesota holds the place as the biggest city that publishes calendars and law books. Among its many other business ventures, tourism, fishing, hunting, and water sports are at the top of the list in businesses in Minnesota.
Standard Business Insurance Coverages in Minnesota
An insurance policy held by an organization, known as a BOP, is an comprehensive insurance package for small businesses that includes multiple coverages in a single package. A BOP includes two leading coverages in a single policy: property insurance and general liability. Business owners insurance in Minnesota transfers potential risk away from the employer to the insurance company by offering protection for a wide range of risks of loss, such as buildings, equipment, and liabilities for legal reasons. Typically, the insurance claims that business owners insurance coverage strives to protect the business from include: employee injury, wage loss, professional liability claims, valuable paperwork, legal liability claims, equipment breakdown, fire, employee fraud, money and securities, and property claims. The Minnesota-based company may have extra components added to the original BOP coverage depending on the potential risks of that business.
General liability insurance in Minnesota is thoughtfully organized to protect owners of small businesses from monetary burden that can come from neglectful acts, omissions, or both, caused by the employer or their workers, and which may cause physical injury or property damage. Contractual liabilities, liabilities from sold products, and accidents on the premises of the insured are some examples of exposures that might be covered under general liability coverage. The damage or harm may be a direct result of negligence and unintended. Typical liability insurance for Minnesotans may be one policy or co-exist with additional policies.
An insurance policy for a small enterprise that combines more than one type of insurance into one policy is called a package policy, or bundle policy. In general, a package policy in the North Star State will combine general liability insurance (reviewed above) and commercial property (reviewed below); though a package policy may be designed to cover nearly any type of coverage, which depends mostly on the needs of the business. A package policy in Minnesota is helpful for a leader of a medium sized company since it allows for optimum flexibility to adjust to a policy mainly for the unique needs and risk exposures of the organization.
Commercial Property Insurance in Minnesota is available to provide coverage for any kind of commercial property, and includes, important papers, building, equipment, furniture, supply, and personal property. Commercial property insurance offers protection against a variety of disasters, including twisters, hail, explosion, fire, burglary, destruction, natural disasters, and lightning strikes. A range of businesses will benefit from this type of insurance, including retailers, not-for-profit entities, manufacturing firms, and companies in the service industry.
Workers’ compensation insurance in Minnesota provides coverage to enterprises for employee work-related injuries or occupational illnesses. Any type of business with employees will generally need Workers’ Comp insurance. Workers’ compensation insurance is a no-fault, state-mandated insurance arrangement that works to provide benefits to employees that suffer injuries or an illness while on the job. Because the state of Minnesota has a strict requirement for employers to carry workers’ compensation, businesses that fail to carry it may have fines and civil penalties or cause the organization to be liable for the cost of injuries suffered by their employees. Workers of a company with workers’ compensation insurance will receive medical care and lost salary coverage in exchange for the caveat that they will not sue the company.
Entities that own one or more vehicles used for work-related operations are expected to purchase commercial auto insurance, which protects their business. Commercial auto insurance in Minnesota will offer your corporation and your workforce financial protection for use of trucks, vans, cans, or other vehicles used for business duties. Commercial auto insurance protects against damages and medical costs that may be caused by vehicle accidents, as well as vandalism and destruction from hail storms. Coverage for organizations in the state of Minnesota include vehicles that are owned, rented, leased, or hired by your enterprise, as well as vehicles owned by your workers and used for work-related duties. Because some workers use their own vehicles for business use, it is highly recommended that businesses obtain a commercial auto insurance policy, which, for your reference, is called non-owned commercial auto insurance.
Commercial umbrella insurance in the Land of 1,000 Lakes is a must for your small business. Your business will benefit from umbrella insurance due to the fact that your existing liability policies may have coverage limits, and may not cover all expenses if a catastrophic or unexpected event occurs. Commercial umbrella insurance in Minnesota is an essential source of coverage that fills in the holes in primary insurance policies. Umbrella insurance is a great way to have added protection against property damage, bodily injury, or other types of liabilities.
Some Additional Business Insurance Coverages in Minnesota to Consider
Errors and Omissions insurance policies provide Saint Paul, Minnesota businesses and workers with protection against lawsuits and claims made by clients or customers for careless acts, errors, and oversights made during business transactions that resulted in a loss of revenue or output on the part of the customer or client. Errors and Omissions insurance covers legal defense and court costs, as well as settlements as described on the insurance contract. In the medical field, medical doctors require malpractice insurance, so proprietors of small organizations who provide services or consulting advice, either straightforwardly or through subcontractors, require errors and omissions insurance in Minnesota.
Professional liability insurance in Minnesota offers extra protection for workers, such as general contractors, consultants, and brokers, from being liable for paying the entire legal cost of defending against a claim of inattention, mistakes, failure to perform, or omission made by a client as well as damages allocated in that claim. The coverage’s major focus is on the financial burden on the client from this type of alleged claim with respect to a product or service provided by the employee. Professional liability insurance may provide claim coverage, even if the legal actions are unconfirmed. Professional liability insurance in Minnesota is required by law in a variety of professional practices, including legal and health, but is also necessary by contract in other industries.
Employment Practices Liability Insurance (EPLI) offers enterprises protection against accusations of preferential treatment, wrongful termination, sexual harassment, breach of contract, income law violations, false imprisonment, emotional distress, libel, slander, mental suffering, careless hiring and promotion decisions, and defamation claims. Employment practices liability insurance is based on the laws, acts, and protection from 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.
Fidelity Bonds in Minnesota
Fidelity bonds in Minnesota are a type of insurance obtained by companies in Minneapolis in order to protect against losses, including fraud, embezzlement, or theft by one or more employees. Reimbursement from professional falsified acts are typically not available because the money is most likely already spent, fidelity bonds benefit the company by protecting them from accruing the financial losses. Many businesses safeguard against these types of theft and fraudulent practices such as employment screening, internal fraud controls, and close watch of their workers, but this does not always suffice. Losses suffered from professional thefts of money, property, or securities are all covered under fidelity bonds insurance in Minnesota. The three main types of fidelity bonds include; business service bonds, standard employee dishonesty bonds, and ERISA bonds.
Surety Bonds in Minnesota
A surety bond is a compulsory agreement or contract shared between three parties: the principal, obligee, and surety (insurance company). It represents the assurance they will pay a specified sum should a party fail to complete a commitment, including fulfilling the terms of the contract. Surety bonds in Minnesota protect the receiver from loss if the contract is not fulfilled, while the surety company takes on the responsibility for nonperformance. A surety bond is typically required for financial compensation. Owners of Minnesota companies may need a surety bond to ensure payment of utility bills or state sales taxes, while a contractor may need to post a bond to secure work or be suitable for licenses. Surety bonds in the state of Minnesota are more commonly seen in the construction industry, but are also used in other industries such as notaries public, health and fitness clubs, medical supply companies, automobile dealers, and others. Since there are a wide range of small businesses that need and make use of bonds, several types and features of surety bonds are available in Minnesota with a variety of guarantees.
Small business owners in the Midwest state of Minnesota are recommended to purchase additional business insurance policies, which will protect their business from a variety of risk facts that may emerge during the course of business operations. No matter what type of small business you have in Minnesota, whether it is a hunting supply store in Minneapolis or a gift shop in St. Paul, your growing business should be provided with the best in business insurance. In the state of Minnesota, many small businesses have a great chance of a long and successful venture, therefore having supplemental business insurance aside from your standard insurance that covers common risks, is crucial.