Firm insurance is an important investment for a clamming business since it protects the financial assets of the business owner.
This article will discuss the primary insurance coverage for clamming firms, general liability insurance, as well as additional policies that are appropriate for this industry.
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Clamming 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 A CLAMMING BUSINESS
Example 1: While on a tour of your clam processing factory, a visitor stumbles on wet pavement, fractures his tailbone, and asks that your company pay for his medical care. The medical expenditures of the wounded guest would be covered by general liability insurance.
Example 2: A client is walking through your facility when an employee backs into her, knocking her to the ground. In the ensuing tumble, the client fractures his arm and chooses to sue your company. Your legal defence expenses would be covered by general liability insurance.
Example 3: You are astonished and want to employ an attorney right away when a competitor clamming firm files a lawsuit against your company for defamation and libel. Your legal defence expenses 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
Clamming companies in America pay an average of $500 – $1,200 per year for $1 million in general liability coverage.
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 Clamming Companies Require
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 clamming firms should have include:
Insurance for Workers’ Compensation
Workers’ compensation insurance is required in most states for both part-time and full-time employees. 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 Product Liability
While you work hard to provide a high-quality product via your clamming company, there is always the possibility that someone would claim your product caused them injury. Product liability insurance would cover your legal defence expenses as well as any compulsory compensation in the case of a lawsuit.
Coverage Options for Some Clamming Companies
In addition to the insurance listed above, your clamming 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 Property
You made a significant financial investment in the equipment, materials, and real estate required to start your clamming company. 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. This covers structural damage to your building(s), as well as damage to your equipment and other business goods kept in them.
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.
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.