Ranked third in quality of life and fourth in education by CNBC’s 2011 Top States for Business, conducting a business in Vermont offers a wide range of possibilities. Nicknamed the “Green Mountain State,” Vermont is known not only for its magnificent landscapes, including lush forests and famous ski resorts, but also for being heavily independent. Vermonters take pride in the independence they have maintained since the early settlers and modern-day Vermont residents remain free thinkers who focus on individuality. The state of Vermont is a leading producer of monument granite, marble, and maple products as well as talc. Agriculture farming is another big commodity in Vermont, which encompasses fruit trees and dairy farming. Manufacturing is prominent in Vermont as well, showcasing fabricated metal products, electrical equipment, paper, and printing and publishing. Tourists are attracted to Vermont for their skiing possibilities, hunting, fishing, and hiking. If you operate a small business in the state, consider the various business insurance possibilities in Vermont available to you.
Standard Business Insurance Coverages in Vermont
Business Owners Insurance in Vermont is an insurance policy, also known as a BOP, as a detailed bundle for small organizations that offers a variety of liability and property coverages. A BOP integrates two key coverages in a single policy: property insurance and general liability. The insurance coverage for Vermonter business owners transfers risk away from the employer to the insurance company by providing them with added protection for different types of liability, including buildings, equipment, and legal liabilities. The most common security claims that Vermonter business owners insurance coverage protects you from include: liability claims, important documents, broken equipment, fire, employee deception, money and securities, and property claims. Other components for the entity in Vermont may be supplemented from the original BOP coverage depending on the possible risks of the company.
General liability insurance in Vermont is carefully planned to offer security and protection for employers from financial burdens that can occur from reckless acts, omissions, or both, caused by the employer or employees and may result in physical harm or property damage. Contractual liabilities, liabilities from commodities sold, and accidents on the premises of the business are some of the more common types of exposures covered under general liability insurance. The injury or damage might be a result of negligence or unintentional. Whether acquired as a single policy or a combination of policies, general liability insurance is valuable protection.
A package policy is a unique type of insurance policy for a Vermont-based business that includes two or more different types of insurance into one insurance policy, or a bundle. Normally, a package policy in The Green Mountain State will combine general liability insurance (described above) and commercial property (described below); although a package policy can also be carefully planned to include almost any type of coverage which will vary based on the unique needs of the entity. A package policy in Vermont is helpful to an employer as it provides them with a good deal of flexibility to adapt a policy for the risk exposures of the business.
Commercial Property Insurance in Vermont is a kind of security coverage for different types of Vermont commercial property, including, indispensable documents, building, materials, equipment, furniture, inventory, and personal property. Commercial property insurance offers protection against different types of perils, including windstorm, hail, explosion, fire, wreckage, theft, natural disasters, and lightning strikes. A variety of business industries feel more secure with this division of insurance, including retailers, not-for-profit entities, manufacturers, and service-related industries.
Any Burlington, Vermont business owner with employees working for them, should obtain Workers’ compensation insurance to offer coverage against employee work-related illnesses, or occupational injuries. Workers’ compensation insurance in Vermont is a no-fault, state-mandated insurance structure that provides benefits to employees who incur injuries or an illness on the job. The state of Vermont requires every business with employees to carry workers’ compensation insurance, therefore, they may be liable for fines and civil penalties if they fail to carry it, and possibly be subjected to paying the cost of injuries received by their staff. By having workers’ compensation insurance for your company, workers benefit from medical care and wages loss coverage with the guarantee that they will not sue the business for injury or illness during work.
Business owners in the New England state of Vermont, whether they have one vehicle or several vehicles, needs to be protected by commercial auto insurance. Commercial auto insurance in Vermont provides monetary protection to employers and their workers by offering coverage for a business’s use of vehicles including trucks, vans, and cars. Commercial auto insurance offers protection against paying for damages and medical costs that may result from vehicle accidents, vandalism and damage from hail storms and other natural disasters. Coverage for Vermont workers includes a variety of vehicles including those that are rented, owned, leased, or hired by the employer, as well as employee-owned vehicles used for job-related operations. Because of this reason, it’s recommended that companies acquire a commercial auto insurance policy if employees use their personal vehicle for business operations; this is known as non-owned commercial auto insurance.
Commercial umbrella insurance in Vermont is beneficial to business entities due to the coverage limits of their existing liability policies, and since they generally don’t cover all expenses in the case of an unanticipated and calamitous event occurs. Umbrella insurance fills the gap between where the general liability insurance starts and the commercial auto insurance or other liability insurance. Commercial umbrella insurance for employees in the state of Vermont is an important source that fills in the gaps in their current business liability coverage. Umbrella insurance is a helpful way to have extra security and protection for property damage, bodily injury, or other types of liabilities.
Some Additional Business Insurance Coverages in Vermont to Consider
Errors and Omissions insurance policies offer Vermonter business owners and employees protection against claims and lawsuits made by clients or customers for careless acts, mistakes, and oversights made through various work-related operations which resulted in lost income or production on the part of the client or customer. Errors and Omissions insurance in Vermont cover legal defense and court costs for organization leaders, as well as settlements as stated on the insurance contract. As pediatricians require malpractice insurance to protect themselves, owners of small companies in the state of Vermont should have errors and omission insurance, primarily if they offer services or consulting advice, whether directly or through subcontractors.
Professional liability insurance in Vermont provides security for staff, such as accountants, CPA’s, and general contractors, from being responsible for paying the legal cost of defending against errors, claims of negligence, failure to perform, or omission which was made by a client, along with damage owed in that claim. The coverage’s main focus is on the financial burden on the part of the client from this type of Professional liability insurance claim. Defense coverage may be offered to the business professionals, even if the legal actions turn out to be unsound. Professional liability insurance in the state of Vermont is required by law in a variety of professional industries, including medical and legal, but is also required by contract in other industries.
Employment Practices Liability Insurance (EPLI), gives business executives protection against claims of discrimination, unlawful termination, sexual harassment, breach of contract, pay law violations, false imprisonment, emotional anguish, libel, slander, mental distress, neglectful hiring and promotion decisions, and offensive claims. Employment practices liability insurance in Vermont is based on the laws, acts, and protection afforded by Title VII of the Civil Rights Act of 1964, Age Discrimination in Employment Act, and Family and Medical Leave Act. These laws are enforced by the Equal Opportunity Employment Commission (EEOC).
Fidelity Bonds in Vermont
Fidelity bonds in Vermont are a unique variety of insurance offered to employers in order to protect against losses, like fraud, embezzlement, or theft by one or more employees. Since compensation from worker for dishonest acts is usually not possible due to the cash already being spent, fidelity bonds are an important security measure for Vermont-based entities that would otherwise have to suffer these monetary losses. Even if your business has extra security against this type of fraud, such as employee screening, close supervision, and internal controls, it doesn’t always prevent these acts. Losses accrued from employee thefts of money, property, or securities are all covered under fidelity bonds insurance in the Wolverine State. Fidelity bonds include the choice of three primary types: business service bonds, standard employee dishonesty bonds, and ERISA bonds.
Surety Bonds in Vermont
A surety bond is a unique contract or agreement shared between three parties: the principal, obligee, and surety (insurance company). The surety bond acts as a promise that the party will pay a specific amount if one of them fails to meet a commitment, such as fulfilling the terms of the contract. A surety bond protects the receiver from monetary trouble if the contract is not fulfilled, while the surety company takes on the liability for not performing. A surety bond is usually required for financial compensation. Owners of enterprises in the state of Vermont may require a surety bond to promise payment of utility bills or state sales taxes, while a contractor may need to post a bond to secure work or be qualified for licenses. While surety bonds in Vermont are usually in the construction industry, surety bonds are also used by mortgage consultants, new car dealers, medical suppliers, gym owners, notaries public, and others. Since many small businesses need bonds, a comprehensive range of guarantees are provided by surety bonds.
Business insurance is a vital part of owning and operating a successful business in Vermont. Whether you own a printing company in Essex or a popular ski resort in Burlington, you should acquire the best possible business insurance policies available to you. As is required by the state of Vermont, you most likely have a traditional business insurance policy that covers basic liabilities. However there are many more risk exposures that may negatively affect your business and assets such as litigations, fire, theft, employee fraudulent activity, accidents, or damages from natural disasters. By obtaining additional business insurance policies, you will have the proper coverage for these types of events.