Rhode Island, the smallest state in the United States, has two Fortune 500 companies headquartered in the quaint state; CVS Caremark and Textron. The state of Rhode Island’s official name is “State of Rhode Island and Providence Plantations” and is the longest state name in the US; it is also one of the most densely populated states due to its size. Nicknamed the “Ocean State,” Rhode Island is known for its beaches and magnificent homes located in Newport overlooking Narragansett Bay, many of which are open to tourists. Aside from fishing, farming and tourism, jewelry manufacturing is also a big industry in the state of Rhode Island. Additional industries which hold importance in the state are metal, plastic and electronic product manufacturing. Small businesses in Rhode Island understand the importance of proper business insurance, of which the options in the state are plentiful. Learn the facts below, and the perfect business insurance in Rhode Island will be yours.
Standard Business Insurance Coverages in Rhode Island
A business owner’s insurance policy, frequently referred to as BOP, is an all-inclusive package for small organizations that contains multiple liability coverages in one package. A BOP combines two primary coverages in one policy: property insurance and general liability. By covering a variety of areas of liability, including buildings, equipment, and legal liabilities, business owners insurance transfers risk away from the Rhode Island-based employer to the insurance company. Common claims that business owners insurance in Rhode Island coverage protects you from include: legal liability claims, personal harm, financial hardship, equipment failure, fire, worker deception, money and securities, important paperwork, and property claims. Additional components can be added to the original BOP policy, depending on the risks a Rhode Islander business owner might face.
General liability insurance in Rhode Island is intended to provide firms with protection from monetary loss arising from unmindful acts, omissions, or both, caused by you or your employees that results in physical injury or damage to property. Some of the exposures typically covered under general liability insurance include from products sold, accidents on the premises of the insured business, and contractual liabilities. The damage or injury may be as a result of carelessness or not purposeful. General liability insurance in Providence, Rhode Island can either be a single policy or combined with other liability policies.
A package policy is an insurance policy that protects small business owners in the state of Rhode Island and combines two or more types of insurance into a single policy, or bundle. Generally, the package policy in Rhode Island will combine general liability insurance (described above) and commercial property (described below); although a package policy may be anticipated to include almost any type of coverage that depends on the individual needs of the business. A package policy is practical for business professionals of small companies because it makes room for great flexibility to tailor make a policy exclusively for the distinctive needs and risk exposures of the business.
Commercial Property Insurance in Rhode Island is beneficial to several types of establishments as it provides coverage for commercial property, and includes building, inventory, gear, supplies, furniture, important documents, and personal property. Commercial property insurance provides protection against a number of loss events, such as fire, explosion, theft, windstorm, hail, lightening strikes, vandalism, and natural disasters. Commercial property insurance is recommended for a different types of small companies, including retailers, manufacturers, not-for-profit entities, and service-oriented businesses.
If you have employees working for your company, workers’ compensation insurance can provide protection against employee occupational illnesses and injuries incurred on the job. Workers’ compensation insurance in Rhode Island is a no-fault, state-mandated insurance system intended to pay back wages to employees who received injuries or an illness during their professional duties. The Ocean State requires organizations with employees to carry workers’ compensation, therefore, if they are found without it, they can be liable for paying harsh fines and civil penalties; occasionally, they may also be liable for the cost of injuries suffered by their employees. Through workers’ compensation insurance in Rhode Island, personnel receive medical care and lost wage coverage in exchange for the promise that they will not sue the business owner.
Whether your business owns a single vehicle or a fleet of vehicles, it’s necessary to obtain commercial auto insurance in Rhode Island. Commercial auto insurance provides financial protection to owners or Rhode Island companies and their workers by offering coverage for a company’s use of trucks, vans, cars, or other vehicles for work-related duties such as deliveries. Commercial auto insurance covers damages and medical costs resulting from vehicle accidents, as well as vandalism and hail damage. Coverage for your Rhode Islander firm may include vehicles owned, rented, leased, or hired by the company, as well as vehicles owned by the driver who uses it work duties. For this latter reason, it’s recommended that enterprises acquire a commercial auto insurance policy if drivers use their own vehicle for duties related to the business; this is referred to as non-owned commercial auto insurance.
Commercial umbrella insurance starts where your general liability, commercial auto insurance, or other liability coverage stops. Because your existing liability policies may have coverage limits, and likely do not cover all expenses in the event of a devastating or unforeseen disaster. Commercial umbrella insurance in Rhode Island is an very important source of security that fills in the gaps in your primary business liability coverage. Umbrella insurance is an incredible way to offer extra protection against property damage, bodily harm, or certain other liabilities.
Some Additional Business Insurance Coverages in Rhode Island to Consider
Errors and Omissions insurance policies offer protection to firms in the New England state of Rhode Island and their employees from lawsuits and claims made by clients or customers for insufficient work, careless acts, errors, and oversights made through business operations that ended up causing a loss of pay or output on the part of the client or customer. Errors and Omissions insurance in Rhode Island covers the cost of legal defense and court expenses, along with settlements as written on the insurance contract. Just like neurologists need malpractice insurance, small business owners in Rhode Island who provide services or consulting advice, either straightforwardly or with subcontractors, should have errors and omissions insurance.
Professional liability insurance assists business owners in Rhode Island, such as auditors, financial analysts, and general contractors, with avoiding the entire legal cost of defending against a claim of negligence, errors, failure to perform, or omission made by a client as well as damages paid in that claim. The coverage’s main focus is on monetary loss on the part of the client from these types of claims with respect to a product or service sold by the employee. Professional liability insurance in the state of Rhode Island may provide claim coverage, even if the legal actions turn out to be groundless. Professional liability insurance is required by law in certain types of professional practices, including legal and medical, but is also required by contract in other industries.
Employers in Rhode Island can receive added protection against claims like wrongful termination, discrimination, breach of contract, violations of income laws, sexual harassment, false imprisonment, libel, slander, emotional anguish, mental anguish, careless hiring and promotion decisions, and claims of defamation with Employment Practices Liability Insurance, also known as EPLI. Employment practices liability insurance in Rhode Island focuses on laws, acts, and protection 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.
Fidelity Bonds in Rhode Island
Fidelity bonds in Rhode Island are a form of insurance that can be purchased by an employer to protect against losses, such as fraud, theft or embezzlement by one or more workers. Because repayment from employee deceitful practices is probably unlikely due to the cash already being spent, fidelity bonds represent a crucial safeguard for a small business owner in the Ocean State who would otherwise be responsible for the financial loss. While it’s important to have security measures such as employee screening, internal controls, and close watch over your employees, sometimes it doesn’t suffice. Losses suffered from employee fraud and thefts of money, property, or securities are all covered under fidelity bonds insurance. The three most frequent types of fidelity bonds are business service bonds, standard employee dishonesty bonds, and ERISA bonds.
Surety Bonds in Rhode Island
A surety bond is a compulsory agreement or contract among three parties: the principal, obligee, and surety (insurance company). It represents the promise to pay a precise amount if a party fails to meet an obligation, such as fulfilling the terms of the agreement. A surety bond protects the receiver against loss should the contract not be fulfilled, while the surety company assumes the responsibility for nonperformance. A surety bond is typically required to obtain financial payment. Companies in Rhode Island 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 meet the eligibility for licenses. While surety bonds are most commonly used in the construction industry, they are also used by mortgage brokers, automobile dealerships, medical suppliers, notary publics, health club establishments, and others. Because of how many varieties of small organizations use and need bonds, there are a variety of types and features of surety bonds in the state of Rhode Island that provide a number of guarantees.
As a business owner in Rhode Island, it is your responsibility to obtain the optimum business insurance policy that will protect your business, employee and business assets. Whether you operate a coffee/doughnut shop in Providence or a fish and tackle store in Newport, you can safeguard your business and assets from various risk exposures like liabilities, litigations, accidents, theft, fraudulent activity, fire, and natural disasters. Some of these types of perils and occurrences might be rare, but they do happen, and your business will be safe if you think to purchase additional business insurance policies to cover them. By preparing for unfortunate events, you can rest assured knowing your business is fully protected.