Business owners insurance, or commercial insurance, often comes as a package including business property coverage and business liability coverage. As a business owner you strive to make your business unique against the competition. Therefore, your insurance policy should be unique to your individualized business needs. At Sandmire Insurance Agency we pride ourselves on our personalized service to learn everything we need to know about you and your business. This understanding allows us to provide you with a tailored policy.
Listed below are some of the types of commercial policies we can write for you:
- Auto Service/ Garage
- Office buildings
- And Many More!
Depending on your business, you may also be in need of workers’ compensation coverage. Workers’ comp varies from state to state, but the main objective is to cover a worker in the event they are injured on the job. This coverage includes medical care, lost wages/ disability, and rehabilitation. Workers’ compensation is not just to protect the employee; this coverage acts as an agreement between the employee(s) and employer that the employee will not sue the employer for damages as the workers’ compensation is in place to cover said damages.
We also write Surety Bonds. A Surety Bond provides a way to financially ensure work is completed according to pre-determined terms. The parties involved are:
- The Surety – company issuing the bond to financially guarantee the principal completes the agreed upon task
- Principal – individual who pays for bond to back his/ her promise to complete the work
- Obligee – entity requiring the principal to obtain a bond
Example of a Surety bond: A contractor (principal) has obtained a job from a government agency to perform a specific task. The government agency (obligee) requires the contractor to obtain a Surety Bond (from surety) to financially guarantee the work is done in accordance to the terms of the contract.
Let’s take the example one step further: In this case, the contractor does not meet the terms of the agreement. The obligee can file a claim with the surety. If the surety determines the claim is valid and pays a sum to the obligee, the principal has to repay the surety that sum.
Based on this example we can determine that a surety bond is NOT a form of insurance for the principal, but more of a line of credit. It could be looked at as insurance for the obligee. However, the obligee pays no premiums since the principal is required to pay for the cost of the bond. You could consider a Surety Bond as somewhat of a cost of doing business.