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1. Identify ALL insurance coverages you will need to bind for the business. Be s

ID: 2776568 • Letter: 1

Question

1.Identify ALL insurance coverages you will need to bind for the business. Be specific about the details of any aviation related coverages.

2.

Business grows and soon you find it hard to maintain the increasing pace. You need to hire a part time pilot to relieve you for several days each week. The pilot wants to be paid “cash under the table” as an independent contractor instead of having payroll taxes withheld, which could save the company paperwork and money. Does this expose the company to any risk? If so, describe and state how to avoid the risk.

Explanation / Answer

The various types of insurance needed for a business are

A.General liability insurance.

B.Property insurance

C.Commercial auto insurance

D.workers compensation insurance

E.professional liability insurance

F.directors and officers insurance

G.data breach insurance

H.life insurance

I.business owners policy insurance

2.The worker can file right to minimum wage and overtime

The company is exposed to risk from income tax department as the company is avoiding many taxes like social security tax, unemployment insurance,or workers compensation