Business Insurance Naples: Quoted From What You Do

What sets a business insurance price, in the order companies ask

Four things come up first on a commercial application, so having them ready shortens the callback.

What the business actually does

A landscaping crew, a roofing contractor, a boutique on a busy street and a consulting firm are priced as different risks, even at the same size. The type of work decides which companies will quote at all, so describe it plainly and completely.

Payroll, sales and headcount

Some commercial policies are rated on payroll or gross sales, and workers' compensation is priced largely on payroll by job class. Rough annual figures are enough to start; the exact numbers come later.

Vehicles, equipment and property

Vehicles used for the work belong on a commercial auto policy, and tools, inventory and an owned or leased space each need a place on the policy. A list of what you own and what you rent keeps anything from falling between policies.

Claims history and the contracts you sign

Past claims shape the price, and so do your contracts. A lease or a client agreement can require a specific liability limit, wording that adds them as an insured, or a certificate before work starts. Those requirements set the floor for the quote.

Florida requires some business coverage; your contracts require the rest

Workers' compensation is the coverage Florida law reaches first. Under s. 440.02, Fla. Stat., a construction business is covered by the workers' compensation law with even one employee, while most other businesses come under it at four or more. Work vehicles also carry Florida's auto insurance requirements, which the FLHSMV insurance requirements page explains.

Beyond what the statutes reach, a landlord, a general contractor or a client can write insurance requirements into the contract: general liability limits, additional insured wording, a certificate of insurance. Those requirements, not a rule of thumb, decide the limits worth quoting. Bring the insurance section of any contract you have signed or are about to sign.

Business insurance Naples owners can build piece by piece

You do not have to buy everything at once; these pieces are the usual starting ground.

General liability

This is the coverage a landlord or client asks for first. It responds to claims that your work or your premises hurt someone or damaged their property, subject to the policy's terms.

Commercial property and business income

Property coverage protects the equipment, inventory and improvements you own, and business income coverage can help replace lost income after a covered loss shuts you down for a while. In the City of Naples, buildings are designed to a 170 mph Risk Category II wind speed (Naples building design wind speeds), so ask how each offer handles windstorm and its deductible.

Commercial auto

Trucks, vans and cars driven for the business belong here, and a vehicle titled to you personally may need a look too if it does company work. Have each driver and vehicle listed before the callback.

Workers' compensation and an umbrella

Workers' compensation answers to the state law above. An umbrella can sit over general liability and commercial auto when a contract asks for higher limits than one policy offers.

Professional liability for advice-based work

If clients pay you for advice, design or another professional service, a claim that your work cost them money is a different risk from an injury or property claim. Professional liability, sometimes called errors and omissions, is written for that. Ask on the callback whether your contracts call for it and what limit they name.