(By Elton Mwangi)
With small businesses in NYS representing half of the entire workforce, it is paramount to know NYS’s business insurance requirements for 2022.
Small businesses employ more than half of the state’s population. Which means business owners small and large are responsible for insuring their employees as diligently as they do their assets, and we’re here to help.
Types of Business Insurance Required in New York
New York General Liability Insurance
If a customer gets into an accident on your premises or the marketing team makes an advertising mistake, the New York general liability insurance or business liability insurance will protect you. It will also keep you safe from claims involving property damage and reputational harm.
This type of business insurance ensures you’re not in financial trouble when the risk occurs.
New York Commercial Property Insurance
Commercial property insurance is an excellent tool for protecting your company’s office building, furniture, inventory, equipment, and personal items.
In the case of a fire, the cover pays for the replacement or repair of destroyed equipment or products. If your furniture is stolen or lost, it will also cater for its replacement.
Other events that are covered under the insurance are vandalism, civil disobedience, hail storms, wind, floods, and earthquakes.
New York Commercial Auto Insurance
Commercial auto insurance covers your business and employees when involved in an accident with a covered business vehicle. It covers medical expenses and damaged property.
If an employee hits someone on the road, the insurance can pay for their medical costs. Here’re the minimum insurance requirements for auto liability insurance in New York State:
- $25,000 liability per person for bodily injury
- $50,000 liability per accident for bodily injury
- $50,000 liability per person for death
- $100,000 liability per accident for death
- $100,000 liability per accident for property damage
- $10,000 liability per accident for property damage
- $50,000 coverage for personal injury
- $25,000 coverage per person for uninsured motorist
- $50,000 coverage per accident for uninsured motorist
Trucking businesses will need additional insurance for regulation purposes.
New York Professional Liability Insurance
Professional liability insurance applies to businesses that offer professional accounting, law, and medical services. This insurance covers professionals whose advice led to a financial loss by a client.
It will pay the cost of investigation, defence, and settlement, covering you from claims arising from misrepresentation, malpractice, and negligence.
However, professional liability insurance does not cover criminal prosecution and all legal liability forms under civil law.
New York Business Income Insurance
When a fire, storm, or other event damages your business premises and you have to close, business income insurance pays you the income you lose during that period.
The insurance cover will also help make tax payments, rent and mortgage payments, loan payments, and payroll and employee wage payments.
However, it doesn’t cover repair costs covered under commercial property insurance. The restoration period is limited to 30 days, but you can extend it by increasing your premiums.
Worker’s Compensation Insurance
Worker’s compensation insurance covers your employees if they get sick or injured at work. The benefits help pay for medical costs, replace lost wages, cover funeral expenses, or pay for ongoing care.
Failure to comply with NYS law governing workers’ compensation insurance can result in penalties, fines, and criminal charges.
Employees who accept workers’ comp benefits cannot sue their employer. Hence, the insurance cover protects both employers and employees.
The Cost of Business Insurance in New York
Many factors affect the cost of business insurance in New York, including business type and inherent risks, business location and operations, number of staff, insurance type purchased, and policy limits.
For instance, New York City is a highly-populated area, and business insurance in 2022 is likely to be higher than Binghamton, a less populated city.
The type of industry you’re in also influences costs significantly. High-risk industries like tree trimming and manufacturing have high coverage expenses.
Located in New York, Zupnick & Associates helps you find affordable business insurance for your company. Reach out to us for a quote.