Business insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for an estate sale firm.
This article will discuss the primary insurance coverage for estate sale firms, general liability insurance, as well as additional policies that are appropriate for this industry.
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Estate Sale 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.
Common Situations That An Estate Sale Company’s General Liability Insurance May Cover
Example 1: An employee loses control of a dolly while carrying boxes from a client’s house to a corporate vehicle, and it collides with the client’s automobile. Your client’s car repair expenses will be covered by general liability insurance.
Example 2: In your office corridor, an employee inadvertently collides with a customer, causing her to fall and break her wrist. The customer chooses to file a lawsuit. General liability insurance would cover your legal bills as well as any settlement amounts.
Example 3: A rival sues you for defamation after your interview with a local news source in which you answered a question regarding other local estate sale firms. Your general liability insurance would cover your legal bills as well as any settlement damages.
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
For $1 million in general liability coverage, the typical estate sale firm in America costs between $400 and $700 per year.
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 Estate Sale Companies
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 estate sale firms should have are as follows:
Insurance for Professional Liability
While you work hard to assist your customers get the most out of their estates, there’s always the possibility that one of them could find issue with your advise or services and decide to sue. In this circumstance, professional liability insurance would protect you by paying your legal bills as well as any damages awarded in a settlement.
Insurance for Commercial Vehicles
Every car you use for work needs commercial auto insurance. If you use a personal vehicle for business purposes, your personal car insurance will not cover vehicle damage or medical care for anybody wounded in a work-related accident. In the case of an accident, commercial car insurance covers any vehicles used on the work.
Coverage Options for Estate Sale Businesses
In addition to the insurance listed above, your estate sale firm 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.
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 require time to recuperate, but also any disability benefits resulting from a workplace injury.
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.