Insurance
You are not required by law to have liability, property damage or
other types of business insurance, but very few businesses can realistically
operate without some form of optional coverage. Chief among these
is general liability insurance and property insurance. In some situations,
life insurance may also be important.
You should have your insurance placed with a company licensed in
New York State if you want the full protection of the State's insurance
law. To get the best coverage for your particular situation, discuss
your needs with a New York State-licensed insurance agent or broker.
The New York State Department of Insurance supervises all insurance
business in New York State. For more information, contact the New
York State Department of Insurance, One Commerce Plaza, Albany,
NY 12257, 518-474-6600 or 800-342-3736.
General Liability
Your business - and in many cases, you personally - can be sued if
someone is injured or property damaged either while on your business
premises or as a result of your business operations. Liability for
damages may be due to negligence, imposed by law or assumed by contract.
If one of your customers slips on your floor and sustains a permanent
injury, that slip could put you out of business if you are not insured
against liability. The same could be true if one of your employees
breaks or damages a valuable item in a customer's home while making
a delivery.
A liability insurance policy typically provides legal defense against
a suit and reimbursement of damages, up to the policy limits, if you
are found liable. To insure the broadest possible protection of your
assets, have an insurance professional negotiate the specific coverage
suitable to a particular business.
Property
Property insurance protects your business against loss caused by the
destruction of a part or all of your property by fire, windstorm,
explosion, falling aircraft, riot and other disasters.
For more information see the
Small
Business Guide to Property Casualty Insurance booklet or contact
an insurance agent or broker.
Business Interruption
If your business is closed for a period due to some type of catastrophe,
you will want to consider business interruption insurance, which helps
pay for loans or debts until the business is back in operation.
Business Life
Business life insurance is used to protect a business or the family
of a business owner from financial loss resulting from the death of
someone associated with the business. If you are a sole proprietor,
such a policy can be used to help dispose of your business in the
event of your death.
In a partnership or limited liability company, the most common use
of life insurance is to insure each partner for the benefit of the
other partner or partners in conjunction with a buy-and-sell agreement.
This enables the survivor or survivors to buy the deceased's interest
and to continue operating the business on a reorganized basis. The
family of the deceased can be guaranteed immediate cash upon liquidation
of its business interest.
Health Coverage
Providing health insurance coverage can be a challenge for small businesses
in today's competitive environment. To meet this critical need, New
York State has implemented the Healthy
NY Program to ensure that affordable health benefits are accessible
to the State's small business owners and working uninsured individuals.
To find out if you qualify for this important program, contact a Health
Maintenance Organization (HMO), visit the Healthy
NY web site or call 1-866-HEALTHY NY.
