Complicated businesses require the proper insurance coverage.
Businesses are all unique and sometimes complicated. The insurance you carry for your business should be tailored to your specific needs. Business owners are sometimes too busy to worry about the difficult matter of insurance; however, it is an important topic that can have disastrous effects if not properly handled. There are several consistent aspects of business insurance. You can generally purchase individual policies, or you can group coverage together into a business package policy. Insurance agents can help you find the right mix of coverage to correctly insure your particular business.
Liability
General liability is the most common form of business insurance. This coverage protects you from lawsuits if someone gets injured at your business location. This covers bodily injury and property damage that happens from your acts or negligence. Tenant's liability will help protect you if you are renting a business location and cause damage to the building. This is sometimes included in the general liability policy.
Another form of liability coverage is professional liability, also knows as errors and omissions. This is for professions where there is a level of expectation that job duties are performed correctly. Examples are lawyers, accountants, teachers, insurance agents, realtors and numerous other professions. Typically these professionals need both general liability and professional liability. This coverage is not general liability; it covers more than bodily injury and property damage, including coverages like financial loss or mental anguish because of improper handling of the professional duties or not fulfilling the contractual expectations.
Property
Business property insurance covers buildings and business personal property, meaning the desks, tools and other miscellaneous items. You have many different options for this coverage including the amount desired, the deductible, the co-insurance and whether you want replacement cost or actual cash value. Your insurance agent can explain the options and the benefits versus the cost difference.
Larger tools and business items generally costing more than two to three thousand dollars can be insured on an inland marine policy or rider. Some insurance companies require items over a certain value to be insured on these policies. Review high value items with your agent to know if they are properly covered.
Auto
Many business owners use their personal car in their business. If a car is used for business purposes, the insurance on it should be reviewed to avoid any gaps in coverage. You might need to add an endorsement, have it rated differently, raise the coverage or purchase a separate business auto policy. Personal and business insurance is rated differently because of the different risks involved. By reviewing how the car is used with your insurance agent and correctly insuring the car you can avoid being denied coverage when a claim arises.
Workers' Compensation
Workers' compensation is required by most states for businesses that employ at least one worker, with few exceptions. This coverage pays for the employees' injury and sickness that happen as a result of work duties. It also contains employer's liability coverage to protect the employer from being sued over their negligent acts that result in an employee's injury or illness.
Additional Policies and Endorsements
There are multiple additional endorsements and policies meant to meet the needs of every business. Pollution liability covers businesses from the damage they might unintentionally do to the surrounding environment. Cyber liability protects businesses from computer viruses that can shut down the business and other Internet threats. Directors and officers liability insurance protects the directors an officers of public or private companies from lawsuits arising out of their mismanagement of the business operations or finances. Insurance agents can help decipher the different options for business insurance and guide you to the right policy or mix of policies.
