Company insurance is intended to safeguard the financial assets of a firm owner and is a necessary investment for a gem sales business.
This article will discuss the primary insurance coverage for gem sales enterprises, general liability insurance, as well as additional policies that are appropriate for this industry.
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Gem Sales 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 GEM SALES BUSINESS
Example 1: While showing a customer a fresh order of pricey gemstones, you reach up to a high shelf to retrieve a huge gem and inadvertently knock the shelf off the wall and onto your client. He suffers a major head injury and must be sent to the hospital by ambulance. If your customer chooses to sue, general liability insurance will cover his medical bills as well as your legal fees.
Example 2: You start a blog in order to attract new consumers and improve your company’s rating on prominent search engines. When one of your blog articles criticises how other gem sales companies manage customer aftercare, a rival sues you for libel. General liability insurance would cover the expenses of your legal defence as well as any related settlement.
Example 3: While accepting a huge order of fresh merchandise, your loading dock door fails, causing considerable damage to the delivery vehicle. General liability insurance would cover the cost of repairing the car as well as your legal defence in the case of a lawsuit.
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
In America, the average cost of $1 million in general liability insurance is between $350 and $750 each 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 Gem Sales 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 gem sales enterprises 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 only an employee’s medical expenditures and lost pay if they need time off to recuperate, but also any disability or death benefits resulting from a workplace accident.
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 not only covers accident-related vehicle repair expenses and medical care for anybody harmed, but also provides enough coverage for any business documents you transport in your vehicle.
Coverage Options for Some Gem Sales Companies
In addition to the insurance listed above, your gem sales firm 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 Home-Based Businesses
If you conduct your business from home, you may need this insurance to protect your business property and the area in your house dedicated to your business. A standard homes insurance coverage may not cover business-related things, medical expenditures, or legal fees incurred as a result of client accidents in your house.
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.