Insurance Policies for Business Owners

Posted by on Aug 27, 2015 in News | 0 comments

Insurance Policies for Business Owners

If you are a business owner, you should consider purchasing the following insurance policies to ensure that your company is protected:

General Liability Insurance: Even if your business is home-based, it needs liability insurance. This policy provides both defense and damages if you, your employees or your products or services cause or are alleged to have caused Bodily Injury or Property Damage to a third party.

Property Insurance: Do you own your own building? Do you have personal property in the building including office equipment, computers, inventory or tools? Then you should consider purchasing a policy that will protect you if you have a fire, vandalism, theft, smoke damage etc. You may also want to consider business interruption/loss of earning insurance as part of the policy to protect your earnings if the business is unable to operate.

Business owner’s policy (BOP): This policy packages all required coverage a business owner would need. BOP’s will often include business interruption insurance, property insurance, vehicle coverage, liability insurance, and crime insurance . You can alter what is included in a BOP based on your company’s specific needs. A business owner will save money by choosing a BOP typically because the bundle of services often costs less than the total cost of all the individual coverage’s.

Commercial Auto Insurance: This type of insurance protects a company’s vehicles such as those that protect vehicles that carry employees, products or equipment. Commercial auto insurance insures your work cars, SUVs, vans and trucks from damage and collisions. Don’t have company vehicles, but employees drive their own cars on company business? Then you should have non-owned auto liability to protect the company in case the employee does not have insurance or has inadequate coverage. Many times the non-owned can be added to the BOP policy.

Worker’s Compensation: Worker’s compensation provides insurance to employees who are injured on the job. It provides wage replacement and medical benefits to those who are injured while working. The employee gives up his rights to sue his employer for the incident In exchange for these benefits. It is very important as a business owner to have worker’s compensation insurance because it protects yourself and your company from legal complications. State laws vary, but all require you to have workers compensation if you have W2 employees. Penalties for noncompliance can be very high.

Professional Liability Insurance: Also known as Errors and Omissions Insurance this policy provides defense and damages for failure to or improperly rendering professional services. A general liability policy does not provide this protection, so it is important to understand the difference. This type of insurance is applicable for any professional firm including lawyers, accountants, consultants, notaries, real estate agents, insurance agents, hair salons and technology providers just to name a few.

Directors and Officers Insurance: This insurance protects directors and officers of a company against their actions that affect the profitability or operations of the company. For instance, if a director or officer of your company, as a direct result of their actions on the job, finds him or herself in a legal situation, this type of insurance can cover costs or damages lost as a result of a lawsuit.

Data Breach: Does your business store sensitive or non-public information about employees or clients on their computers, servers or in paper files that they are responsible for protecting? Then you need this type of insurance should a breach occur either electronically or from a paper file to provide protection against the loss.

Homeowner’s Insurance: Do you office out of your home? Homeowner’s insurance is one of the most important kinds of insurance you need. This type of insurance can protect against damage to the home and against damage to items inside the home. Additionally, this type of insurance may protect you from accidents that happen at home or may have occurred due to actions of your own.

Renter’s Insurance: Renter’s insurance is a sub-set of homeowner’s insurance which applies only to those who rent their home. The coverage is protects against damage to the physical property, contents of the property, and personal injury within the home.

Life Insurance: This type of insurance protects an individual against death. If you have life insurance, the insurer pays a certain amount of money to a beneficiary upon your death. You pay a premium in exchange for the payment of benefits to the beneficiary. Having life insurance allows you to know that your loved ones will not be burdened financially upon your death.

Personal Automobile Insurance: Automobile insurance covers all road vehicles (trucks, cars, motorcycles, etc.). Auto insurance has a dual function, protecting against both physical damage and bodily injury resulting from a crash, and also any liability that might rise from the collision.

Personal Umbrella Insurance: For additional coverage, on top of insurance policies you already have, you might want to purchase this type of insurance as an extension to an already existing insurance policy and covers beyond the regular policy. This insurance can cover different kinds of claims, including homeowner’s or auto insurance. Generally, it is sold in increments of $1 million and is used only when liability on other policies has been exhausted.

For a review of your current policies, please contact us today!

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