Posts Tagged "professional liability insurance"

Insurance Policies for Business Owners

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

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...

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Why You Need Insurance as a Self-Employed Consultant

Posted by on Mar 25, 2015 in News | 0 comments

Do you work from home as a self-employed consultant? Do you believe that you really don’t need insurance at all or that your homeowners insurance will protect you from your business exposure? The fact is, you still have business liability exposures associated with your line of work – even if you work from home. I know a lot of self-employed consultants who feel they do not need insurance. In fact, most of them believe that their homeowners insurance will cover them. While it does cover property such as computers, it does not cover business liability! Unless it’s required by a contract, in general, self-employed consultants don’t get business insurance.  And those coverage’s requested can vary depending on the contract. At a minimum a self-employed consultant should carry general liability, auto liability, workers compensation, and a professional liability policy.  An errors and omissions liability or professional liability is a consultant’s primary business exposure. Depending on the nature of the business larger contracts will also require a consultant to carry an umbrella liability policy and set higher limits on the professional liability policy. So what’s the reason behind requiring subcontractors to carry insurance? To transfer risk; they need to know that their subcontractors insurance will cover any losses caused by the subcontractor  – and – subcontractors are required to pick up the liability of the company requesting the insurance in larger contracts. Most sole proprietor consultants can get a basic foundation of commercial insurance for about $1000 per year as a rule of thumb. Depending on the kind of consulting, adding professional liability or excess liability will increase this cost by another $1,000 to $2,500. I recommend that the limits be negotiated up front in an effort to reduce the cost of risk to all our business customers. An honest discussion about kinds and amounts of insurance is healthy when requiring a consultant with $200,000 – $300,000 of revenue to carry $3 mm or $5 million worth of liability insurance and these excessively high limits may be difficult to obtain from any insurance carrier. Having access to multiple insurance companies is always a plus. At Harned Insurance we have several companies hungry for this kind of business so we can offer good options at the lowest possible cost. Do not hesitate to contact me if you have insurance questions or are in need of...

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