Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for an animal rescue organisation.
This article will discuss the primary insurance coverage for animal rescue organisations, general liability insurance, as well as additional products that are appropriate for this industry.
Table of Contents
Animal Rescue Companies Need General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
GENERAL LIABILITY INSURANCE MAY COVER COMMON SITUATIONS FOR AN ANIMAL RESCUE BUSINESS
Example 1: While transporting a trap into the field to collect stray animals, an employee unintentionally puts it on someone’s automobile. The car repair expenses would be covered by general liability insurance.
Example 2: A customer of your rescue organisation stumbles on a damp floor, strikes her head, and chooses to sue. Your legal defence expenses and any needed payment would be covered by general liability insurance.
Example 3: You’re transporting pet food boxes around the shelter when you come around a corner and run into a guest. He falls on the ground, fractures his wrist, and demands that you pay for his medical care. His medical expenditures would be covered by general liability insurance.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
Animal rescue organisations in the United States pay an average of $300 – $700 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Coverage Required by Animal Rescue Organizations
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all animal rescue organisations should have include:
Insurance for Workers’ Compensation
Most states will require you to have workers’ compensation insurance for both part-time and full-time employees if you recruit any staff for your animal rescue company. This coverage covers your workers if they are hurt at work or get sick as a result of a workplace accident. It covers not just an employee’s medical expenditures and missed pay if they need time off to recuperate, but also any disability or death benefits resulting from a work-related accident.
Insurance for Commercial Property
You spent a lot of money on kennels, food, and medical supplies. Commercial property insurance would cover the expense of repairing or replacing your business-related property in the case of a fire, theft, or natural catastrophe if you own the building in which you operate. This includes structural damage to your building or grounds, as well as damage to the business equipment and supplies stored there.
Coverage Options for Animal Rescue Organizations
In addition to the insurance described above, your animal rescue company may need other forms of coverage based on particular elements of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Umbrella Insurance for Businesses
While most claims are covered by your general liability insurance policy, certain incidents or lawsuits may be so severe that they threaten to deplete the limits of your main coverage. Commercial umbrella insurance protects you from having to pay for legal expenses and awarded damages that exceed the limits of your main policy out of pocket.
Insurance for Commercial Vehicles
In the case of an accident, any car you use mainly for work needs commercial auto insurance to cover the vehicle, driver, and others on the road. Choose a policy that covers not just accident-related vehicle repair expenses and medical care for anybody harmed, but also enough coverage for any business equipment and supplies you transport in your vehicle.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.