Business Insurance
Box Insurance works with highly reputable commercial companies to provide coverage for:
- Property
- General liability
- Business auto
- Workers Compensation
- Umbrella coverage
- Bonds
- Management liability, including:
- Errors and Omissions
- Employment Practices
- Directors and Officers
Business Owner FAQs
Q. What Discount is offered if I put everything with Box Insurance?
A. Box Insurance Agency offers two types of discounts for most business owners. We offer a discount for putting your home and auto together with one carrier (10 to 15 percent). We can also offer up to 10 percent off on your business insurance if your purchase your home and auto insurance from Box Insurance Agency.
Q. Do I really need Workers Compensation? I’ve heard that I don’t have to carry it in Texas?
A. While it’s true that Texas is the only state that doesn’t require you to carry Workers Compensation if you have more than one employee, don’t be deceived. Texas removes all of your legal defenses if you decide not to carry Workers Compensation. In other words, you pay all medical bills, lost time pay and rehabilitation costs for an injured employee. In addition, you are open to a lawsuit from the injured employee. If you carry Workers Compensation, not only are you protected from employee injury, but also from lawsuits from an injured employee. Under state law, the injured employee must take the Workers Compensation benefits provided by the state if injured. What many employers in low-risk industries don’t understand is that an employee who is injured while running errands for the business in their own vehicle is covered under the Workers Compensation policy, not their personal auto policy. The employer is liable.
Q. Should I turn in small claims, such as an $800 theft, and will that negatively impact my business insurance premiums?
A. The purpose of insurance is to make someone whole when they experience adverse financial loss so that it doesn’t threaten their business. The average deductible for property insurance is $1,000. A claim needs to exceed that amount to receive any benefit from making a claim. While one small claim will not increase your premiums, several small claims typically paint a picture to an insurance company that there are internal control problems. Our recommendation is to use a deductible ($1,000, $2,500 or $5,000) that fits your risk preference and to discuss each claim in detail with your agent before turning it in.
Q. How are insurance premiums calculated?
A. All the factors that go into calculating insurance premiums are quite complex, however, the basic principle is simple: Premium = Premium Basis X Rate. The rate is determined by the insurance carrier and the premium basis is provided by the insured. For example, the premium basis for a general liability is typically the annual gross sales for a company. The premium basis for contractors is typically the estimated payroll per class of construction for a year. The premium basis for property is always the limit of the property insurance.
Q. One year, my agent quoted me a premium that was reasonable, however, at the end of the year, the insurance company inspected my books, and I ended up paying twice the amount he quoted me. I learned the hard way that insurance premiums may not be guaranteed. Why not?
Most insurance policies are auditable. The insurance company has the right at the end of the year to audit your books to verify an accurate premium basis (typically sales or payroll if you’re a contractor). If your premium was based on gross sales, then they will determine actual sales for the policy period and multiply it times the rate applicable for the policy period to calculate the actual premium you owe. This is reconciled to the estimated premium that was charged at policy initiation, and either the insurance company pays a refund or the insured pays an additional premium as a result of the audit. However, if you have a surplus lines policy, please note that the insurance company will not refund money, so it is wise to estimate conservatively. Audits can be quite painful, especially if they are unexpected and not planned for. Make sure to confirm with your agent whether your policy is auditable. If so, it is critical to estimate your premium basis (gross sales or payroll) as accurately as possible.
