The state of New York is not only home to bustling New York City, but lush landscapes, waterfront hotels and homes, and scenic drives. Nicknamed “The Empire State” due to its wealth and variety of resources, New York is known for having a high level of rapid commercial growth, and is headquarters to Fortune 500 companies including JP Morgan and Chase, Citigroup, Verizon Communications, and Pfizer. The heart of New York, New York City, is a leader in manufacturing, banking, commerce, finance, foreign trade, theatrical production, book and magazine publishing. Tourism is also a major industry in New York with such attractions as the Statue of Liberty, Niagara Falls, Baseball Hall of Fame, Central Park, museums in New York City, and National Historical Sites throughout the state. According to the 2011 CNBC Top States for Business list, New York ranks first for education, second for technology and innovation, and third for access to capital, which makes it a prime location to own and operate a small business. A multitude of types of small businesses in New York thrive and should be protected with business insurance.
Standard Business Insurance Coverages in New York
Business Owners Insurance in New York is an insurance policy acquired by an entity, commonly referred to as a BOP, as a comprehensive small business insurance package that provides a number of liability coverages in one package. Property insurance and general liability are two significant coverages that a business owners insurance policy integrates. The insurance coverage for employers in The Empire State transfers risk away from the owner of the enterprise to the insurance company by giving them protection for a range of liability, such as retail buildings, business equipment, and liabilities for legal issues. Common indemnity claims that NYC small business owners insurance coverage protects you from are: injury to an employee, income loss, specialized liability claims, valuable papers, equipment breakdown and failure, fire, authorized liability claims, employee fraud, money and securities, and property claims. Additional components for the New York small business may be supplemented from the original BOP coverage depending on the possible risks of the business.
General liability insurance in New York is offered to companies as a means to protect them from financial loss that may rise from negligence which are caused by the organization or its staff that may result in physical harm or property damage. Common types of risk exposures usually covered under general liability insurance are contractual liabilities, liabilities from products sold, and on-premises accidents. The injury or damage might be from lack of concentration or not deliberate. General liability insurance for New York small business owners may be a single policy or can be included as part of several policies.
A package policy is an important type of insurance policy for a business proprietor that includes several types of insurance to be found in one insurance policy, called a package or bundle. The typical package policy in New York combines general liability insurance (written about above) and commercial property (written about below); keep in mind a package policy may be arranged to include nearly every type of coverage, which depends on the specific needs of the small business. A package policy is helpful to an employer of New York as it allows for a great deal of flexibility to adapt to a policy mainly for the unique needs and risk exposures of the company.
Commercial Property Insurance in New York is available protection coverage for a range of not only New York City commercial property, but commercial property throughout the state. It includes valuable papers, commercial building, equipment, products, office furniture, inventory, and personal property. Commercial property insurance offers protection for New York-based businesses against various types of perils, including windstorm, hail, explosion, fire, burglary, natural disasters, and lightning strikes. Whether in Manhattan or Brooklyn, a variety of professionals benefit from New York commercial property insurance; these include retailers, deli owners, manufacturers, tourist shops, not-for-profit entities, and service-oriented organizations.
The state of New York has a requirement that any company with employees working for them have Workers’ compensation insurance to provide coverage against employee work-related injuries and occupational illnesses. Workers’ compensation insurance in New York is a no-fault, state-mandated insurance that offers benefits to staff who suffered injuries or illnesses on the job. Because Workers’ compensation is required for New York companies, 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 received by their employees. By having workers’ compensation insurance for your New York small business, workers benefit from medical care and lost income coverage with the promise that they will not sue their employer for the injury or illness.
As a New York employer with at least one vehicle, your business should be protected by commercial auto insurance. Commercial auto insurance in New York offers financial security to business professionals 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 New York businesses includes vehicles which are owned, rented, leased or hired by the employer, and includes employee-owned vehicles which are used for work-related duties. For this reason, it’s recommended that companies purchase a commercial auto insurance policy if workers use their own vehicle for business operations; this is called non-owned commercial auto insurance.
Commercial umbrella insurance in New York fills the gap between your general liability insurance and your commercial auto insurance; these types of liability policies might have coverage limits and not cover all expenses from events that are deemed unforeseen and ruinous. Umbrella insurance is a recommended resource for firms in the state of New York because it fills in the gaps and covers a number of exclusions in your primary business liability coverage. Umbrella insurance is a great way to have additional protection against property damage, bodily injury, or other types of liabilities.
Some Additional Business Insurance Coverages in New York to Consider
Errors and Omissions insurance policies provide small business owners and professionals with protection from lawsuits and claims made by either clients or customers for negligent acts, careless duties, mistakes, and oversights that might be made through business operations and resulted in a loss of wages or production on the part of the client or customer. Errors and Omissions insurance in New York provides help with legal defense and court costs, as well as with settlements, which is described in detail on the insurance contract. Just like medical doctors make certain to be covered with malpractice insurance, owners of enterprises should have errors and omissions insurance if they offer services or consulting advice, whether directly or through subcontractors.
Professional liability insurance in New York offers added protection for professionals, including financial analysts, contractors, and marketing consultants, from being liable 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 key focus is on the financial burden of the client from this specific kind of claim with respect to the goods or service provided by employees. Even if the legal actions turn out to be unsubstantiated, professional liability insurance may offer claim coverage for the New York firm. Professional liability insurance in the state of New York is required by law in various industries, most notably in medical and legal, but is also required by contract in other industries.
Employment Practices Liability Insurance in New York (EPLI) offers protection to employers toward 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 Age Discrimination in Employment Act, VII of the Civil Rights Act of 1964, and Family and Medical Leave Act — which the Equal Opportunity Employment Commission (EEOC) properly enforces throughout The Empire State.
Fidelity Bonds in New York
Fidelity bonds in New York provides businesses with protection against losses, such as theft, embezzlement, or fraud by one or more of their workers. Reimbursement from these types of acts doesn’t typically come to fruition since the money is often already spent in many cases, so fidelity bonds offer companies a security against having to be liable for these types of financial burdens. Even companies with additional protection against these types of dishonest acts, including employee screening, internal control, and close supervision, it doesn’t always suffice. Financial losses suffered from employee thefts of money, property, or securities, are covered under fidelity bonds insurance in New York. Business service bonds, standard employee dishonesty bonds, and ERISA bonds are three of the most common types of fidelity bonds.
Surety Bonds in New York
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 pledge they will agree to an agreed 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 responsible for the non-performing principal. In order to obtain monetary compensation in these types of situations, a surety bond is typically required. Owners of New York-based firms may require a surety bond to assure payment of state sales taxes or utility expenses, while a contractor may need to post a bond to promise work or be eligible for licenses. While surety bonds in New York are commonly used in the construction industry, surety bonds are also used by many other types of companies, including brokers for mortgages, medical supply companies, automobile dealerships, health and fitness club establishments, notaries public, and others. Since many small companies need and use bonds, there are a range of types and features of surety bonds in the state of New York provide a myriad of guarantees.
Whether you operate a high-end jewelry store in Manhattan, New York City or a hair salon in Buffalo, your New York-based business should be protected by business insurance that goes beyond your standard policy. While every small business in the state of New York will have traditional business insurance, it may not cover everything, especially in the event of certain risk exposures like theft, employee dishonesty, or natural disasters. If you want to safeguard your company from potential threats and risk exposures, additional business insurance policies can be purchased in order to supplement your standard business insurance and have added coverages.