Category: Commercial Insurance

When you are new to business or commercial insurance, you may have lots of questions. You may find some included terms confusing. Insurance companies use terms that may not be part of everyday language. Most people will need clarification of at least some insurance terms. At Adams Insurance & Financial in Northwest Arkansas, we are here to help our customers any way we can, whether answering questions or explaining terms. 

• Actual cash value- This is the amount your property is actually worth today. A 10-year-old machine you use in your business is not worth the same amount when purchased. When you choose this type of coverage, depreciation is taken into account when you try to collect. 
• Business interruption insurance- If your business suffers a covered peril, this insurance can provide the money your company needs to meet normal expenses while you cannot do business. 
• Business owners’ policy (BOP)- A Business Owners’ Policy combines two of the most common commercial insurance coverage types, property and liability coverage. Usually, this combination will be less expensive than the two policies separately. 
• Commercial Lines- These are insurance products that provide business coverage in the form of commercial auto, general and professional liability, workers compensation, and other coverage to protect your business.  
• Replacement cost- Replacement cost is exactly what it sounds like. If something you need to do business with is damaged beyond repair, it will be replaced at the cost of replacement today, not the cost when it was purchased. 
• Rider- This may also be referred to as an endorsement. It is an amendment or an alteration to your policy that provides additional or something not covered on the original policy. 
• Workers Compensation Insurance– This is a commercial line of insurance that protects workers when they are injured while doing their job. 

Contact Adams Insurance & Financial in Northwest Arkansas for all your commercial insurance needs. 

In 2018, Arkansas was home to more than 247,000 small businesses employing more than 400,000 people. Since 2018, those figures are estimated to have grown, with small businesses being a crucial part of Arkansas’ economy. Consequently, if you are a small business owner in Arkansas, you must have enough insurance to cover not only your business and assets but also your assets like company vehicles and property. 

When deciding between coverage options, it is essential always to have enough liability coverage to protect the entirety of your assets. Liability coverage helps pay for damage to a third party person or property. Additional examples of coverage offered under liability include advertising errors if accused of copyright infringement, reputational damage to help pay for defense against claims of slander or libel, and medical payments if someone is injured while at your place of work. 

Outside of several exceptions, the vast majority of small businesses in Arkansas are required to carry workers’ compensation insurance if they have three or more employees. Workers’ compensation insurance helps pay for medical bills and lost wages due to workplace injuries and illnesses. Additionally, any vehicle owned by the business must be covered under commercial auto insurance. 

When it comes to shopping for commercial insurance in Northwest Arkansas, look no further than Adams Insurance & Financial. Our friendly and knowledgeable team of insurance professionals know the industry like the back of their hands and are ready to customize a policy that perfectly fits your company’s needs. Give us a call today to schedule a no-obligation consultation to learn about how we can help protect your livelihood.