A review of your insurance coverage is in order to make sure you are protected from property damage and liability claims.
Commercial general liability (CGL)
Injuries such as slips, trips and falls are always a problem. Lighting changes from outside to in and patrons may miss oil or other slick spots that develop between cleanings. You may also face issues such as assaults or robberies on your premises. If you are accused of negligently managing your facility, CGL will help with legal fees and any damages you are required to pay.
Insurers also recommend another type of coverage that can be added to your CGL policy. Known as advertising and personal injury, this type of policy can protect you if you are accused of infringing on someone’s copyright or trademark, or of detaining someone inappropriately while waiting for police to respond.
Garagekeepers and bailee insurance
Customers entrust parking lot and garage operators with their vehicles and the possessions within them. When they leave their vehicles in your care, you become a bailee, a legal term for someone who has custody and responsibility for the property of another. If their property is damaged as a result of your negligence, a garagekeepers policy (bailee insurance written for garage and parking lot owners or operators) can help with legal fees and restitution. Garagekeepers insurance can sometimes be added to your CGL policy, so ask your agent about your options.
If you provide valet service, garagekeepers insurance is especially important. Be aware that it always takes into account how you handle customer vehicles, how many autos you typically house and the estimated value of those vehicles.
Note that there are different coverages available under garagekeepers insurance, too. These include:
- Garagekeepers legal liability, which responds only if you are legally found liable
- Direct primary coverage, which can help even if you are not legally liable for damage
- Direct excess, which steps in if the vehicle owner’s personal car insurance isn’t sufficient
Your Rathbun Insurance commercial account executive can help you decide if you need any or all of these coverages.
Know that you can also be sued if a customer’s car is stolen or broken into, or if an employee is believed to have stolen items from a vehicle. Talk to your insurance advisor about financial protection for your company in these circumstances, because you could face substantial legal bills and potential costs of restitution.
Excess liability insurance
If you are ever faced with an on-premises assault, severe injury or extreme property damage, the settlement costs can exceed your primary liability policy’s coverage limit. Excess liability adds to the underlying liability policies you already carry, so you won’t run out of insurance money in the event of a significant claim.
Excess coverage is surprisingly affordable. Talk with your agent, and then decide if you need the extra layer of protection. In an era of rising insurance settlements and jury verdicts, excess insurance is becoming more of a necessity.
Commercial property insurance
Whether you own or lease, you must protect your facility and your business’s personal property. Customized property insurance will help you repair or replace structures and equipment (including exit booths) damaged by a covered event, such as a fire.
You may also decide you need insurance for lost business income if a covered loss occurs. That is called business interruption insurance and it often can be added to an existing commercial property policy.
If you are concerned that an employee might steal cash from your business, you can also get a fidelity bond, sometimes called employee dishonesty insurance. While it doesn’t protect your company if they steal from customers, it can help if a worker makes off with a substantial amount of cash receipts.
Workers’ compensation insurance
If one of your parking lot employees is injured on the job, workers’ compensation offers the following benefits:
- Medical care expenses
- Income flow while they are out due to injury
- Burial expenses in case of a fatality
- Vocational rehabilitation (in some cases)
Workers’ compensation is required in most states, but even if you don’t have to carry it, talk to your agent or broker about what would happen if an employee were seriously injured on the job. You might decide the premium is well worth the protection provided.
Business owners policies
A business owners policy (BOP) for garages or parking lots offers a neatly packaged set of insurance coverages specifically for your operations. Here are just a few of the coverages a BOP provides:
- Premises liability insurance for injuries to customers
- Property repair costs if you damage a client’s vehicle
- Property coverage for leased or owned facilities
- Business income insurance if a covered loss interrupts your income
- Employee dishonesty coverage if one of your employees steals from you
A BOP is one of the easiest ways to insure a small business. If managing one renewal date appeals to you, a BOP may be appropriate.
Know that floods and earthquakes are typically not included in standard insurance policies, so you’ll need separate coverages for those.
Now is an excellent time to carefully consider all your insurance needs. Your Rathbun Insurance commercial account executive can help.