Business insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a greeting card company.
This article will discuss the primary insurance coverage for greeting card firms, general liability insurance, as well as additional policies that are appropriate for this industry.
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Greeting Card 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 GREETING CARD COMPANY
Example 1: An employee loses control of a cart in the parking lot while transporting a big quantity of cards from the manufacturing floor to on-site storage. The errant cart collides with a customer’s automobile, inflicting significant damage. In the case of a lawsuit, general liability insurance would cover the car repair expenses as well as any associated damages.
Example 2: A last-minute consumer rushes in, slips on the wet floor, and injures themselves while an employee cleans up for the day. In the case of a lawsuit, your general liability coverage would cover the customer’s medical costs and other losses.
Example 3: A visitor falls over some boxes while viewing your manufacturing line and fractures an arm. She is angry that you did not post a “warning” sign and threatens legal action. Her medical costs and any compensation amount 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
In the United States, greeting card firms 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 Greeting Card 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 every greeting card firms should have are as follows:
Insurance for Commercial Property
In the case of a fire or other natural catastrophe, you are liable for any business-related items stored in the building you own. After an accident, commercial property insurance would pay for the expense of repairing or replacing your specialised manufacturing equipment, computers, and other company assets, allowing you to recover swiftly.
Coverage 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 lost pay if they need time off to recuperate, but also any disability compensation resulting from a work-related injury.
Types of Insurance That Some Greeting Card Companies May Require
In addition to the policies listed above, your greeting card business may need other forms of coverage based on particular parts 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.
Commercial Umbrella Insurance
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 Product Liability
If your cards or other gift goods ever cause a consumer to be injured, product liability insurance can protect your company and pay for any damages in the case of a lawsuit.
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.