Kyle Hatchett: Hi, it’s Kyle Hatchett from Hatchett Insurance answering the question how does business insurance work? Let’s compare it to personal insurance. On your personal insurance, you’ve got your home, you’ve got your auto, and then maybe you have an umbrella for your liability. In the business world, you’ve got kind of an analogous to that. You’ve got the business owners policy, you’ve got a commercial auto policy, and then you’ve got a commercial umbrella policy.
The business owners policy is kind of like your homeowner’s policy. A homeowners policy, it covers your liability if someone gets hurt on your property, and it covers the physical structure, the building and the contents inside. A business owners policy is similar to that. It insures the building that your building is in if you own the building. If you don’t own the building, it can just insure your contents, and then it insures against liability from your business operations.
Business auto is similar. It works like personal auto, but there are some things that are covered on a business owners policy that would not be covered on a personal auto, and those are basically issues that would come up in a business that wouldn’t normally come up with just you driving your personal auto, things like loading and unloading, and then hired and non-owned auto.
And then a commercial umbrella works like a personal umbrella. When the liability limits of your business owners insurance or your auto insurance are used up, you have an extra layer of protection usually a million dollar limit on your umbrella that pays for that. And then workers’ compensation is the other big one in the business insurance world. You are liable for all your employees’ injuries while they’re at work, and so the best way to deal with that is with a workers’ comp policy. Pays their medical expenses if they’re hurt on the job. Hope that helps.