This blog post answers a few common questions we receive about commercial insurance policies in Florida. We have endeavored to answer many general questions about business insurance policies and claims. As a Miami commercial insurance attorney, I invite you to contact us to ask more specific questions about your unique circumstances.
What types of small business risk does a commercial policy cover?
There are three main areas of insurance coverage provided by a standard business policy in Florida. These types of risk include:
- Liability Coverage: This form of insurance provides financial coverage for litigation, judgments, and settlements stemming from harm caused by a business to others. Typically, this harm will stem from acts or omissions by your employees as part of your business operations. The harm might amount to physical injury, wrongful death, or property damage caused by substandard installations, defective products, or mistakes in providing services.
- Property Damage: This form of commercial coverage applies to damage to building and property inside the structures. This form of coverage comes in two distinct forms – (1) standard coverage and special coverage. Special forms provide more extensive coverage.
- Business Interruption Coverage: This form of coverage provides reimbursement for lost income caused by a catastrophe like a flood, fire, hurricane, earthquake, or other covered perils that interferes with normal operations. This type of coverage also can provide funds to cover the increased costs of operating the business at a temporary alternate location.
What types of factors impact the cost of business insurance?
There are a broad range of considerations that might impact premium rates for a commercial policy. Some of these factors include:
- Industry within which the business operates
- Value of capital and assets of the business
- Number of employees
- Volume of business
- Risk management practices implemented
Business owners need to compare prices among multiple carriers because annual premiums can vary dramatically. While a small home-based business might pay less than $1,000 per year in premiums, a large corporation with many employees exposed to a broad spectrum of risks might pay hundreds of thousands in premiums annually.
Can the cost of commercial coverage be deducted on tax returns?
Commercial insurance is a tax deductible expense provided the policy is designed for the purpose of operating a trade, business, or profession. However, business insurance cannot be deducted if is to be used to provide a self-insurance reserve fund or to furnish a loss of earnings policy.
What types of litigation risks are covered and not covered under business liability insurance policy?
General liability insurance coverage may provide financial protection against losses associated with the cost of litigation, legal defense, and verdicts or settlements in favor of injury victims. Depending on the situation, this type of policy might also provide financial compensation related to libel, slander, or misleading and/or false advertising. If a customer, supplier, or visitor is injured during the course of your company doing business, general liability coverage will usually provide a source of financial protection against loss. Many businesses also purchase a commercial umbrella policy in the event of a claim that exposes the company to greater liability, such as a judgment or settlement exceeding a certain amount.
However, liability for some types of injury or wrongful death might be excluded. Examples include situations where damage or injury is expected or the result of intentional misconduct. Commercial policies often also exclude punitive damages. There are special types of liability coverage that might be appropriate depending on the business, such as:
- Directors and officers liability
- Errors and omissions (professional liability)
- Product liability
- Environmental and pollution liability
- Employer’s liability
- Employment practices liability
Our Miami insurance claims law firm invites you to contact us if you are having difficulties with your insurance company. Miami insurance claims lawyer J.P. Gonzalez-Sirgo handles property damage claims against insurance companies in Miami and throughout Florida. The Law Firm of J.P. Gonzalez-Sirgo, P.A. offers free consultations and case evaluations. No Recovery, No Lawyer Fees. Call 305-461-1095 or Toll Free 1-866-71-CLAIM.