What Insurance Is Required For Cave Creek Arizona Businesses?
Insurance requirements vary from industry to industry, and from state to state. For instance, Arizona contractors are required to have a general liability policy, which would be obtained through an insurance brokerage, as well as bonding insurance, which can be obtained through a broker or a company that specializes in bonding. Worker compensation is another type of insurance policy that is mandatory in cave creek AZ, and requires underwriting and approval.
Unlike other types of insurance, this insures your workers against injuries and accidents on the job, and covers medical expenses and paid time off. Like any other policy, it has minimums and maximums in insuring AZ businesesses, as well as deductibles and exemptions.
Types Of Business Insurance Available
Commercial General Liability Insurance
Commercial General Liability Insurance is required for all businesses. It protects against a variety of risks that business are exposed, including lawsuits for things ranging from slander to medical insurance to covering the cost of settlement bonds, which may be required in the event of a summary judgment against your corporation.
Arizona Commercial General Liability insurance policies are widely varied in price, depending upon the risk classification assigned by the underwriter. Generally speaking, the premium for the policy will be as a percentage of gross sales, since the volume of your operations determines the amount of risk one needs to be insured against.
Professional Liability Insurance is needed for a variety of industries, where the failure of the persons of the company to adequately provide a service can open the corporation to legal action. Anytime a service is being rendered in Arizona, professional liability exists. This can cover insurance for Event Planners, Web Designers, Property Managers, Community Associations, Media, Management Consultants and many more, in cave creek and any other Arizona city.
To help decrease your insurance risk factor, you can employ a number of preventive measures, such as drug testing, certifications and training, good project management and team coordination, all these thing prevent the insured from ever needing the policy. Lowered claims will result in a lower premium, and the saving can be quite substantial over time.
Contractors require a level of insurance beyond other industries. Their safety procedures can mean life or death for their employees, and this must be insured against the possibility of a catastrophic accident.
There are different types of Arizona insurance for contractors, including bonding insurance, which covers insurance on a contractor performance bond, or warranty bond. There is also workers compensation, the same as with other industries, but contractors tend to work hand in hand with their carriers to keep premiums in check, since it makes up such a large portion of payroll expenses.
While different trades have different rates, it is not uncommon for tradesmen to pay 15 cents on the dollar or more. For this reason, it is important for the company with the insurance policy to maintain strict safety standards, stringent oversight and constant procedural maintenance.
The largest workers comp carrier for the Cave Creek, Arizona area is SCF. They have been the sole provider of workers comp- for the contracting industry for some time, but recently other insurers have moved into to provide competitive services, and there are deals to be had for those who are willing to work with their broker and shop their policy.
Some of the trades with the highest premiums would be roofers, framers, masons, and electrical contractors policies.
Directors And Officers Liability Insurance
This insurance is vital for any company that has its officers answerable to investors or a board, or if there is a possibility a law suit is able to breach the corporate veil and hit executives directly, this insurance would be a safeguard against that scenario as well.
Officers of a company are assumed to have the responsibility of acting in the best interests of the company and its clients. When an officer makes a side bet against his company or a clients assets, his unethical actions expose the entire company substantial risk. This policy will ensure danger is mitigated and covered.
There is also another aspect to this, that being sexual harassment or discrimination lawsuits, which have been levied against countless companies in the past decade. This type of claim can tie a company up in expensive and time consuming litigation for years, which many businesses simply cannot afford. Don’t let one bad action sink your whole ship – you can insure yourself from this litigation and save your company.
How to Obtain Insurance
Insurance can be obtained through a carrier. There are many insurance carriers, and they typical employ a network of brokers to help them manage their clients. Brokers will help you get an application filled, and have it sent to the insurance underwriters at the insurance carriers who are most able to help you, so that you can look at multiple prices, and select the best deal.
Be sure to have a loss history, tax returns, and an EIN to submit to the underwriters, as well as personal financial s for the officers and member of organization, particularly if this is your first time being underwritten and you have not had insurance previously.