New York City Business Liability Insurance

purchasing New York City business liability insurance will be high on your to-do list if you're starting a small business in NY. You need liability insurance for two main reasons: accidents and mistakes. Both accidents and mistakes happen, regardless of how careful you are with your New York City business operations. People forget things, break things, fall down, leave the coffeepot on, etc., and you need to be protected by New York City business liability coverage.

Find Quality Coverage

The quality of your New York City business liability insurance depends on the company you choose to insure you. Probably, you've heard that all insurance companies will lie, cheat, and attempt to deny coverage, but that's not entirely true. Like auto insurance companies, some New York City business liability insurance companies don't provide quality coverage, and attempt to ruin you with fine print. However, there are some fine New York City companies out there; you just have to choose the right one.

How do you know whether your New York City business liability insurance company is trustworthy? Well, it might help to get a good agent or broker, since he or she can shop around for the best policy for you, and also give you some background on different companies. Be sure you choose a good agency, though, since some unethical agencies will mark up a premium and take the difference. New York City agents usually work off of a commission from all companies and so they shouldn't "pick favorites".

Some people believe that choosing larger, more commercial New York business insurance companies is better, as those big brands need to take care of their clients to stay afloat. You may or may not agree, but make sure you compare a few companies before choosing one (or have a broker you trust show you a few, as they should anyway). Also, make sure the New York City business liability insurance companies you are considering have solid financial history and decent reviews.

Above all, choose a New York City business liability insurance company that you trust, with a stable history and good rating. Do not simply choose the cheapest NY insurer. Remember: bad insurance is worse than having none at all. After all, New York liability insurance is very expensive and important.

Occurrence Policy Versus Claims Made

Before purchasing New York business liability insurance, you should understand the difference between the two main types of policies: claims made or occurrence policy. If you have a good New York City broker, he or she can probably direct you to the right kind of policy. A claims made liability policy is active during the time that your business is insured, while an occurrence policy remains active.

In other words, if you purchase a claims made policy from a New York City business liability insurance you're covered for any accident that happens while it's active, but once you stop paying, you're no longer covered. If you decide to stop working in three years and cancel your policy, your liability is no longer protected. If you designed a playground in New York during the time you were covered, and seven years later it collapses, you're in big trouble! A claims made policy might not be such a good idea if you foresee your work changing in the future.

You can, however, purchase tail coverage to protect you when a policy ends, which will be less expensive. However, tail coverage is still quite expensive. Also, if you end a claims made policy to change to another claims made policy, your new insurer will need to include a prior acts endorsement. Or, of course, you could purchase tail coverage from your old insurer instead. In any case, you always need to have active New York City business liability insurance.

Occurrence coverage provides coverage for any incident no matter when the accident is reported. So, if the wall you built crumbles in fifteen years, you're still covered. Or, if a will you wrote comes into question several decades after it's written, you're still covered.

As you might have expected, occurrence policies are more expensive than claims made policies. Another thing you might want to consider: your coverage limits in a decade will be lower than you'd like, since they aren't adjusted for inflation or company growth. On the other hand, occurrence coverage allows you to have more flexibility, and if you want to change insurers you can.

In any case, regardless of the policy you choose, it's best to find New York City business liability insurance that you really trust and stay with them. If you find a good New York City business to insure you, you will sleep more soundly, and not have to spend a lot of time bouncing from once company to the next.

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