Company insurance is intended to safeguard the financial assets of a firm owner and is a crucial investment for an irrigation business.
34177060 – large irrigation system
This article will discuss the primary insurance coverage for irrigation enterprises, general liability insurance, as well as additional products that are appropriate for this industry.
Table of Contents
Irrigation 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 IRRIGATION BUSINESS
Example 1: While your staff is digging a trench, the customer walks in it and fractures his ankle. The expense of his medical care would be covered by his general liability insurance.
Example 2: The work you did at a client’s company causes drainage concerns, causing property damage to both his and his neighbor’s buildings. Both suit you for the expense of repairs and lost income while the drainage problems were rectified. Your legal bills and any court-awarded damages would be covered by general liability insurance.
Example 3: Your new marketing campaign indicates that the other irrigation companies in town don’t perform good job. Several of your rivals file lawsuits against you, alleging that your actions have harmed their businesses. Your legal defence expenses and any court-awarded damages 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
Irrigation firms in America pay an average of $400 – $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 Irrigation 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 irrigation enterprises should have are as follows:
Insurance for Commercial Property
You made a significant investment in the equipment and tools needed to run your firm. 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 includes structural damage to your facility and the items housed inside it.
Commercial property insurance is often available as part of a company owner’s policy (BOP).
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 company property you transport in your vehicle. Consider an insurance with coverage limitations that surpass the state-mandated minimum.
Depending on the insurer, commercial vehicle insurance may be purchased as part of a business owners policy (BOP) or as a separate policy.
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. This sort of coverage also covers legal defence expenses for serious injuries that result in litigation.
Workers’ compensation insurance is typically sold separately by most insurers.
Types of Insurance That Some Irrigation Companies May Require
In addition to the insurance listed above, your irrigation firm may need other forms of coverage based on various 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 Inland Waterways
While commercial property insurance covers your specialised tools and equipment while they are used or stored on company-owned property, it does not cover them when they are in transit or in use at a client’s location. Inland marine insurance bridges that gap by offering coverage for your company’s property, equipment, and tools away from its facilities.
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.