Company insurance is intended to safeguard the financial assets of a firm owner and is a necessary investment for an ice sculpting business.
This article will discuss the primary insurance coverage for ice sculpting firms, general liability insurance, as well as additional policies that are appropriate for this industry.
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Ice Sculpture 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 ICE SCULPTURE BUSINESS
Example 1: When constructing an ice sculpture, your crew fails to take the necessary measures. As a consequence, the melting ice spreads throughout the arena, inflicting considerable damage to the flooring. General liability insurance should cover the expense of repairing the flooring as well as legal assistance in the event of a lawsuit.
Example 2: A municipal conference asks attendees to show proof of liability insurance. This responsibility will be met by your general liability coverage.
Example 3: Your employee is overheard disparaging a rival at an event. They are suing your company for defamation, saying that their company has suffered as a consequence. General liability insurance should cover legal fees and awarded damages up to the policy limits.
Example 4: While visiting the workplace, a prospective customer stumbles over your welcome mat. They want you to pay for their medical expenditures. A general liability coverage should cover their charges as well as any future litigation costs incurred by you.
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
Ice sculpture firms in America typically pay between $400 and $1500 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 Ice Sculpture Businesses
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 ice sculpting enterprises should have include:
Insurance for Product Liability
Your clients have high expectations for the goods and services you provide. If customers believe your items have damaged them, they may sue you in court. Product liability insurance will protect you in court and pay any damages awarded by the court.
This coverage is often issued as part of a business owner’s policy (BOP), and you may modify it to your specific requirements.
Insurance for Commercial Property
Commercial property insurance is critical for safeguarding your company’s assets, including its physical space and goods. If a covered loss causes damage, the insurance will pay to repair or replace damaged goods. It does not apply to non-owned structures. However, you may add extra endorsements to offer coverage for areas of the building for which you are accountable under the leasing agreement.
Commercial property insurance is often acquired in conjunction with a company owner’s coverage (BOP).
Coverage Options for Some Ice Sculpture Businesses
In addition to the insurance listed above, your ice sculpting company may need other forms of coverage based on particular features 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.
Insurance for Commercial Vehicles
Delivering an ice sculpture is a sensitive task that should only be performed by you and your employees. If you or a team member is involved in an accident while performing business, a commercial vehicle coverage will cover the loss up to the policy limits. Repair of damaged cars, medical bills, and equipment damage are all covered. While your state may require minimum vehicle insurance coverage, company owners should evaluate their specific requirements to establish the appropriate policy limits.
Depending on the provider, commercial vehicle insurance may be purchased as a separate policy or as part of a business owner’s policy (BOP).
Insurance for Workers’ Compensation
Each state requires firms to have worker’s compensation insurance on all salaried workers. This covers on-the-job injury and sickness, as well as the injured party’s medical expenditures and lost earnings while off the job. If the employee chooses to sue for their injuries, workers compensation will pay your legal expenses as well as any awarded damages.
Workers compensation is often written as a separate policy by most insurance firms.
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 your business’ internal processes. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your business is an LLC, look into LLC Insurance.