Video Transcript: Business Insurance

hello, welcome. We're going to be discussing business insurance, business  insurance types, property insurance, product liability insurance, professional  liability insurance, commercial auto insurance, trip business insurance, workers  compensation, casualty insurance, health insurance, business interruption  insurance, we're going to be discussing these property insurance, commercial  property insurance protects commercial property from such perils as fire, theft  and natural disaster. This type of insurance is carried by a variety of businesses, including manufacturers, retailers, service oriented businesses and not for profit  organizations. So you want to make sure that our investment, our plant, our  property, our equipment, is insured in case of a fire or natural disaster and  they're destroyed. We want to be able to be reimbursed through our insurance  company so we get insurance to protect our property assets. Product Liability  insurance protects the business from claims related to manufacture or sale of  products, food, medicines or other goods to the public. It covers the  manufacturer or seller's liability for losses or injuries to buyer, user or bystander  caused by a defect or malfunction of the product, and in some instances, a  defective design or a failure to warn one of these part of a commercial liability  policy. The coverage is sometimes called products completed operations  coverage, right? So if you're automobile maker, right, and there's a big recall  because your brakes don't work right? They're going to probably have product  liability insurance to ensure if anything happens, as far as you know, a tragic  accident, somebody is severely hurt, you know, and then they get sued, the  automobile maker gets sued, then they'll have insurance that will be paying out  probably portions of the proceeds from the lawsuit, probably not all of it, but I  would say at least a percentage. professional liability, also called professional  indemnity insurance, but more commonly known as errors and omissions in the  US. It is a form of liability insurance that helps protect professional advice and  service providing individuals and companies from bearing the full cost of  defending against negligence claim made by a client in damages awarded in  such a civil lawsuit. Right? So let's say we aren't holding up to our fiduciary  responsibility as an investment advisor, and we are commingling our cash,  maybe with our client's cash, and you know, that's found out, and we are taken  to court by our Client, right? We will have some sort of professional liability  insurance to ensure that those downside risks from a lawsuit are mitigated,  purchased for cars, trucks, motorcycles and other road vehicles. This is  Commercial Auto. Its primary use is to provide financial protection against  physical damage and or bodily injury resulting from traffic collisions, and against  liability that could also arise there from the specific terms of vehicle insurance  varies by law, from state to state or region to region. Right to a lesser degree,  vehicle insurance may additionally offer financial protection against the theft of  the vehicle and possibly damage to the vehicle sustained from things other than  traffic collisions. So we're all pretty familiar with commercial, well, auto 

insurance, but Commercial Auto is very similar, right to regular individual  household auto, business travel insurance, right? It's intended to cover medical  expenses, trip cancelation, lost luggage, flight accident and other losses  incurred while traveling, either internationally or within own domestic country. It  can be usually arranged at the time of the booking of a trip to cover exactly the  duration of that trip or a multi trip. Policy can cover an unlimited number of trips  within a set time frame. Some policies offer lower and higher medical expense  options. The higher ones are chiefly for countries that have extremely high  medical costs, such as the United States. So workers compensation provides  medical and partial wage replacement benefits to employees injured as a result  of work related activity, every organization is going to have some form of  Workers Compensation. You don't want to have your employees injured at work  and not have any workers compensation coverage, because then you are  definitely open to lawsuit. Litigation. This coverage also provides the employer  protection from the threat of a civil lawsuit by an employee with a work related  injury. This coverage is provided by workers compensation policy secured by the employer so casualty and liability insurance. Liability insurance protects your  business from lawsuits, both the legal costs and the settlement or judgment  costs if any, General Liability covers injuries and damages that occur in the  course of doing business. Casualty insurance focuses on injuries on your  business premise and crimes against it. It includes issues from terrorism to fraud to burglary to identity theft to the misdirected softball that goes through the store window. Since casualty incidents overlap with some other types of insurance,  this coverage may be folded into other types of policies. Accidents may be  covered with commercial general liability. So we want to make sure that we're  just protected against anything that may arise. It's unforeseen, just just overall  liability insurance. We never know how our operation can affect somebody  unintentionally and cause damage. Business interruption insurance, also known  as business income insurance is a type of insurance that covers the loss of  income that a business suffers from a disaster. The income loss covered may be due to disaster related closing of the business facility due to the rebuilding  process after a disaster. It differs from property insurance, and that property  insurance only covers the physical damage to the business, while the additional  coverage allotted by the business interruption policy covers the profits that  would have been earned. This extra policy provision is applicable to all types of  businesses as it is designed to put a business in the same financial position it  would have been if no loss had occurred. This type of coverage is not sold as a  standalone policy, but can be added onto the business property insurance policy or comprehensive package policy, such as a business owner's policy. Since  business interruption is included as part of the business's primary policy, it only  pays out if the cause of the loss is covered by the overarching policy. So this is a good policy to have, right? So if we experience a national disaster and our 

company, our property, plant equipment, is destroyed, and it takes six or eight  months for us to rebuild, we've got business interruption insurance that will  guarantee the payment, or a portion of the payment, of projected cash flows and revenues so that we don't so we can meet our obligations, so that we can pay  payroll, so that we can, you know, meet our debt obligations, things like that. So  group health insurance, employer sponsored health insurance, is paid for by  businesses on behalf of their employees, as part of an employee benefit  package. Most private, non government health coverage in the US is  employment based nearly all large employers in America offer group health  insurance to their employees. The typical large employer PPO plan is typically  more generous than either Medicare or the Federal Employees Health Benefits  Program Standard Option. So you know, one benefit that you'll get for working  most of the time is group health insurance. Let's look at some insurance laws.  Businesses with employees are required by law to pay for certain types of  insurance, workers comp insurance, and depending on where the business is  located, disability insurance. So businesses will cover those things, right? So a  lot of times, you'll have the option to select a short term disability package or  something like that. Workers Compensation Insurance is required for any non  construction business employing four or more people, and may and any  construction business with at least one employee. Commercial automobile  coverage is required for businesses that own lease or operate a motor vehicle.