Montana gets its nickname “The Treasure State” from the enormous economic possibilities through businesses relating to electronics, technology, agriculture, biotechnology, and innovative energy development sectors. Known for its hunting, fishing, skiing, and dude ranching opportunities, Montana continues to be popular for tourists as they visit the state’s 26 glaciers, 200 lakes, and well-known parks including Yellowstone National Park and the Glacier National Park on the Continental Divide. Montana is also home to the largest fresh water spring in the nation, Giant Springs, and one of the most scenic drives in the country in Glacier Park, called “Going to the Sun Road.” Growing a business in Montana is more than just operating a company in a gorgeous setting; Montana ranks seventh or better in a variety of areas related to innovation and entrepreneurship including fourth in STEM job growth, seventh in R&D intensity, second in entrepreneurship activity, and fifth in small business lending activity, according to a 2011 U.S. Chamber of Commerce report. Here’s a summary of the most common types of business insurance in Montana you should be aware of.
Standard Business Insurance Coverages in Montana
Business Owners Insurance in Montana is an insurance policy purchased by a business entity, commonly referred to as a BOP, as an extensive small business insurance package that provides a number of coverages in one package. A BOP integrates two primary coverages in a solitary policy: property insurance and general liability. The insurance coverage for employers in Big Sky Country transfers risk away from the enterprise to the insurance company by giving them protection for a range of potential losses, such as buildings, equipment, and liabilities for legal purposes. Typical indemnity claims that small business owners insurance coverage protects you from are: injury to an employee, loss of wages, specialized liability claims, important papers, equipment failure, fire, authorized liability claims, employee fraud, money and securities, and property claims. Additional components for the Montana organization may be supplemented from the original BOP coverage depending on the possible risks of the business.
General liability insurance in Montana is offered to enterprises as protection from financial loss that may rise from negligence caused by the company or their staff that sometimes result in physical harm or property damage. Common types of exposures usually covered under general liability insurance are contractual liabilities, liabilities from wares sold, and accidents on the premises of the company. General liability insurance for Montana small business owners may be a single policy or can be part of several policies.
A package policy is a wide-ranging type of insurance policy for a business proprietor that includes several types of insurance placed into one insurance policy, called a package or bundle. The typical package policy in the Treasure State combines general liability insurance (described above) and commercial property (described below); keep in mind a package policy may be set up to include nearly every type of coverage, which depends on the unique needs of the business. A package policy in Montana is helpful to a small business owner as it allows for a great range of flexibility to adapt to a policy primarily for the needs and risk exposures of the company.
Commercial Property Insurance in Montana is available protection coverage for a range of Montana commercial property, and includes, important documents, building, equipment, goods, furniture, inventory, and personal property. Commercial property insurance offers protection for Montana-based businesses against various types of perils, including windstorm, hail, explosion, fire, burglary, wreckage, natural disasters, and lightning strikes. A variety of businesses benefit from commercial property insurance, including sporting goods retailers, manufacturers, not-for-profit entities, and medical service-oriented organizations.
The state of Montana has a requirement that any company with employees working for them have Workers’ compensation insurance to provide coverage against employee work-related injuries and work-related illnesses. Workers’ compensation insurance in Montana is a no-fault, state-mandated insurance structure that offers benefits to workers who have suffered injuries or illnesses during work. Because Workers’ compensation is required in the mountainous state of Montana, the entity may be liable for fines and civil penalties if they fail to carry it, and can also lead the company to being responsible for the cost of injuries suffered by their employees. By having workers’ compensation insurance for your Montana small business, employees benefit from medical care and lost income coverage with the guarantee that they will not sue their employer as for the injury or illness.
As a Montanan employer with at least one vehicle, your company should be protected by commercial auto insurance. Commercial auto insurance in Montana offers monetary security to businesses and their employees by providing coverage for that company’s use of trucks, vans, cars, and other vehicles. Commercial auto insurance provides protection against damages and medical costs that result from accidents, as well as vandalism and damage from natural disasters such as hail storms. Coverage for Montana companies includes vehicles which are owned, rented, leased or hired by the employer, and includes vehicles owned by the drivers who use their vehicle for company duties. For this reason, it’s recommended that businesses purchase a commercial auto insurance policy if workers use their own vehicle for business operations.
Commercial umbrella insurance in Montana fills the gap between your general liability insurance and your commercial auto insurance since these types of liability policies might have coverage limits and not cover all expenses from events that are deemed catastrophic and unforeseen. Umbrella insurance is a recommended resource for small business owners throughout the state of Montana because it extends coverage by extending limits of coverage provided in your primary business liability coverage. Umbrella insurance is an exceptional way to have additional security for property damage, bodily injury, or other types of liabilities.
Some Additional Business Insurance Coverages in Montana to Consider
Errors and Omissions insurance policies provide small business owners in Montana and employees with protection from lawsuits and claims made by customers or clients for negligent acts, careless duties, errors, and oversights that might be made through business operations and resulted in a loss of income or production on the part of the client or customer. Errors and Omissions insurance in Montana provides coverage for legal defense and court costs, as well as with settlements which is detailed on the insurance contract. Just like orthopedic surgeons having malpractice insurance, owners of enterprises should have errors and omissions insurance if they offer services or consulting advice, whether with subcontractors or directly.
Professional liability insurance in Montana offers extra protection for professionals, including tax accountants, lawyers, and mutual fund managers, from liabilty for the legal cost of defending against a claim of carelessness, mistakes, failure to perform, or omission made by a client, along with damages owed in that claim. The coverage’s main focus is on the loss the client from this particular kind of claim with respect to the goods or service provided by the staff. Even if the legal actions turn out to be unconfirmed, professional liability insurance may offer claim coverage for the Montana entity. Professional liability insurance in the state of Montana is required by law in various industries, primarily in medical and legal, but is also required by contract in many other professions.
Employment Practices Liability Insurance in Montana (EPLI) offers protection to employers for accusations of discrimination, wrongful termination, breach of contract, sexual harassment, mental distress, careless hiring and promotion choices, and objectionable 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, which the Equal Opportunity Employment Commission (EEOC) enforces throughout the United States.
Fidelity Bonds in Montana
Fidelity bonds in Montana provides organizations with protection against losses, such as embezzlement, fraud, or theft by one or more of their employees. Reimbursement from these types of acts is usually not possible since the money is often already spent in many cases, so fidelity bonds offer businesses a security against having to assume liability for these types of financial losses. Even companies with additional protection against these types of dishonest acts, including employee screening, internal control, and close supervision, doesn’t always suffice. Financial losses suffered from professional thefts of money, property, or securities, are covered under fidelity bonds insurance in Montana. The three main types of fidelity bonds include business service bonds, standard employee dishonesty bonds, and ERISA bonds.
Surety Bonds in Montana
A surety bond is an obligatory agreement or contract shared mutually between three parties: the principal, obligee, and insurance company, or surety. The surety bonds signify a promise they will agree to a specific amount if a party fails to meet their commitment, such as fulfilling the terms of the contract. A surety bond offers protection to the recipient from loss if the contract is not fulfilled, while the surety company becomes liable for not performing. Owners of Montana-based entities may require a surety bond to assure payment of utility bills or state sales taxes, while a contractor may need to post a bond to promise work or be eligible for licenses. While surety bonds in Montana are commonly used in the construction industry, surety bonds are also used by mortgage brokers, medical suppliers, auto dealerships, health club owners, notaries public, and others. Since many small businesses need and use bonds, there are a range of types and features of surety bonds in the state of Montana provide a variety of guarantees.
Advanced technological sectors and various innovative and agricultural industries in Montana add to the potential success of many small businesses. Many residents and tourists are attracted to Montana for their recreational activities, attractions, and awe-inspiring nature quests, which make small business insurance in Montana a vital part of your organization’s success. Whether you operate a fish and tackle shop in Billings, or a bed and breakfast in Great Falls, having the best in business insurance is crucial and will protect your financial and business assets. Natural disasters, litigation’s, liabilities, and additional types of risk exposures may be partially covered b your traditional business insurance policy, but additional policies can supplement your coverage offering you optimum security.