Why Get Business Insurance in North Dakota
Smart business owners in North Dakota know that companies need to be protected with comprehensive business insurance. Whether you own a large company with many employees or run a small business, the proper insurance coverage offers business owners solid financial protection in the event of a claim due to an accident, weather-related damages, or even certain natural disasters.
Without adequate coverage, the risk for small North Dakota businesses is huge. For example, if an accident occurs on your business property and you aren’t properly covered by business liability insurance, a lawsuit can literally bankrupt your company. The same holds true for large businesses also. Even if a business continues to operate after a legal battle, it can suffer tremendously while trying to recover the damages awarded by the court. Many companies in this situation are forced to lower productivity and downsize the number of employees.
If you live in the Red River Valley where springtime floods are a yearly occurrence, a federal flood policy is a real necessity to provide protection for your business against this natural disaster. Other forms of insurance available will depend on what you want to protect such as property protection, liability protection and optional coverage like health insurance.
Worker’s Compensation in North Dakota
In the state of North Dakota, worker’s compensation is a state-mandated, “no-fault” insurance system meaning benefits are provided to workers who are injured on the job. An employer with at least one employee is required to obtain North Dakota worker’s compensation before the employee start his or her first day of work or else may face severe civil penalties and fines. Once employers obtain worker’s compensation coverage for their employees, they can receive immunity from civil lawsuits filed by their employees over workplace injuries.
There are a few circumstances when certain types of businesses are exempt under the provisions of worker’s compensation laws in North Dakota. If an employer chooses to forego providing worker’s compensation insurance, the employer still has the responsibility to provide benefits to an injured worker.
In North Dakota, you can purchase worker’s compensation insurance through private insurance carriers or through some type of state funds.
Coverage for North Dakota Business Insurance
There are different types of North Dakota business liability insurance such as standard bodily injury, property damage, personal injury, product liability and advertising injury coverage. General liability protection is an invaluable part of North Dakota business insurance. This policy will protect your business against claims if customers, contractors or even visitors sustain an injury or illness on your premises during normal business operations. Aside from covering the normal items such as medical expenses and lost income, it also covers any legal and court costs that may arise.
Another type of liability insurance you might want to consider is employer’s liability coverage. This is not generally included in basic business liability insurance but can provide additional protection for business owners.
North Dakota employers’ liability insurance will cover the following:
- Wage disputes – This form of protection will cover the cost when employers pay any missing wages, as long as the employee can prove they have not been paid. Another aspect of this protection is when an employee claims that he or she is underpaid and is entitled to be paid more based on work experience. This is something that an employer should be prepared for because a former or current employee frequently makes such claims.
- Employee injury – This part of the North Dakota liability insurance will pay for any injury incurred due to the negligence of the business when the employee files a lawsuit against the business for the damages caused and to pay for medical expenses and other losses that they cannot afford.
To have an idea on how much protection you need, insurers will generally evaluate the type of business which is being insured, determine the total value of your assets, and consider where the business is located. You can easily find out much of this information by contacting several insurance companies and comparing coverage options and rates. This can be done quickly and securely online. Be sure to get a comprehensive business insurance policy which fully protects both your business and your personal assets.