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If you own a small business in the Ocean State, this information will help you understand Rhode Island Commercial Liability insurance and protect your business and your personal assets from legal claims and settlements that can spell financial ruin. Having sufficient general liability insurance is an important part of any small business plan in Rhode Island.
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If you own a small business in the Rhode Island , this information will help you understand Rhode Island Commercial Liability insurance and protect your business and your personal assets from legal claims and settlements that can spell financial ruin. Whether you work in Providence, Cranston, Newport, Pawtucket, Warwick or anywhere else in the Ocean State, having sufficient commercial liability coverage is an important part of any small business plan in Rhode Island.
A small business is defined as any company with fewer than 500 employees. Small business is vital to Rhode Island’s economic well-being, accounting for over 96% of all state employers. Of Rhode Island’s 95,845 small businesses in 2008 (the latest data available), 24,824 were small employers, accounting for almost 56% of the state’s private-sector jobs. Another 71,021 were sole proprietorships with no employees. Source: SBA Rhode Island Small Business Profile 2011.
Commercial liability insurance (also called business liability insurance and commercial general liability insurance) protects your Rhode Island business from financial loss resulting from claims of injury or damage cause to others by you or your employees. A policy typically covers:
Commercial Liability Insurance is not mandatory for businesses operating in Rhode Island. Rhode Island is a pure comparative negligence fault state. The plaintiff can recover awards even if he or she is up to 99% at fault. There is no cap on personal injury awards in Rhode Island. The statute of limitations for general personal injury is 3 years. It is 10 years from the date of purchase for product liability. Accidents and lawsuits (legitimate and frivolous) do happen in Rhode Island. If you own property or other valuable assets you would be wise to invest in sufficient commercial general liability coverage for your Rhode Island small businesses.
Each situation is unique, but as a general guideline, the type of Rhode Island business you operate or products you manufacture should determine how much Rhode Island commercial general liability insurance you need. A good rule of thumb for most small businesses is between $500,000 and $1 million. However, if yours is a high-risk business such as the building trades or has a high volume of interaction with the public such as a restaurant or retail business, you should consider increasing your coverage. Note that if you operate out of your home, your homeowner’s or renter’s insurance has limited coverage for business liability and loss.
Rhode Island commercial liability insurance premiums are based on a number of factors including the types of service or products you provide, the number of people you employ, how long you’ve been in business, and your claims history. Coverage is typically capped at a specific dollar amount for your policy period.
Mandatory
Optional
Rhode Island Insurance Department
This agency is responsible for regulating all insurance policies sold in the state, including commercial liability coverage.
| Visit: | www.dbr.state.ri.us/divisions/insurance |
| Call: | (888) 877-4894 |
| Write: | Rhode Island Department of Business Regulation 1511 Pontiac Avenue, Cranston, RI 02920 |
Rhode Island Small Business Administration
The SBA is an independent agency of the federal government created to aid, counsel, assist and protect the interests of small business concerns and maintains a District Office in Concord. Get the link to the Rhode Island SBA at www.sba.gov.
National Association of Insurance Commissioners (NAIC)
This is an organization of insurance regulators from the 50 states, District of Columbia and the five U.S. territories. NAIC provides a forum for the development of uniform policies when appropriate. It also offers an online form for filing complaints, reporting suspected insurance fraud and downloading key financial information about insurance carriers at naic.org.
Insurance Information Institute (III)
This organization’s mission is to improve public understanding of insurance – what it is and how it works. Visit III at www.iii.org
E-Insure
Get competitive quotes for commercial liability insurance and all your business insurance needs at www.EINSURANCE.com/business-insurance.
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