How Liability and Property Insurance Work
Many insurance providers bundle the primary property and liability insurance coverages you need into an economically priced business owner's policy. You can then tailor your insurance package by extending the coverage limits in specific areas or adding options to cover risks that are inherent to your industry.
How Workers' Compensation Insurance Works
Most workers' compensation insurance policies actually provide two types of coverages:
- Workers' Compensation Coverage. This type of insurance provides benefits for injured workers as required by state law regardless of who is at fault for the injury or illness. In other words, whatever benefits your state requires, your Workers' Compensation policy would provide.
- Employers' Liability Coverage. This additional coverage protects employers in case they are ever sued for damages arising from employment-related accidents or diseases. However, to collect benefits provided by employer's liability coverage, both the employee as well as anyone else not covered by workers' compensation laws (i.e., spouses and dependents) would have to prove that the employer was actually legally responsible for the employee's injury or disease.
How Umbrella Insurance Works
Umbrella insurance policies provide additional liability insurance coverage after the limits of your underlying policy are reached.
For example, if several people were injured on your property and required $1.5 million in medical treatment but the liability limit of your underlying policy is $1 million, your umbrella insurance policy would cover the additional $500,000 (if you're found liable).
| Cost of Medical Treatment | $1,500,000 |
| Your Basic Liability Limit | $1,000,000 |
| Umbrella Policy Would Cover the Gap | $500,000 |
What Commercial Auto Insurance Covers
The coverage should include business-use autos, pickups, vans, trucks and non-owned and rented vehicles. You may also want to include a conversation about "non-owned" vehicles-when employees use their own vehicles to run errands; and rented vehicles-when an employee travels and needs to rent a car.
