The idea of a one-size-fits all business insurance policy is simply inadequate to account for all the potential threats and liabilities a typical business faces. Businesses need to make sure they have adequate protection for a wide variety of potential risks so the business can get back on its feet in a timely manner.
It’s true that Business Insurance needs vary greatly from one business to the next but there are some common policies that every business should consider.
Business Owners Policy
This is a standard business insurance policy that provides some protection for common problems facing business including:
• Business Property insurance
• General Business liability insurance
• Business interruption coverage
• Equipment breakdown insurance
It’s important to understand that the Business Owners Policies (BOP’s) vary from one company to the next and is not meant to be a single policy that meets all the insurance needs of the business. It’s simply a bundled package that offers a discounted rate on basic insurance coverage that most businesses definitely need. It doesn’t matter if your bundled package is called a Commercial Package Policy or Business Owners Policy so long as the coverage needed is being provided to protect you and your business.
General Liability Insurance
Liability coverage helps to cover things like medical expenses if someone is injured on your property, by using your products, or as a result of the actions of your employees. By definition, General Liability Insurance protects you against claims made against your business for Bodily Injury and Property Damage to Others. It also offers coverage for attorney’s fees and any damages your business is determined to be responsible or liability for. Keep in mind that General Liability is probably the most required coverage that you will encounter for your business.
General liability coverage, though, is limited in scope. It’s important to discuss your business needs with a qualified insurance agent at Charles Obeid in order to determine what specific types of liability coverage will serve you best and how much coverage you need.
Commercial Property Insurance
Property insurance covers damage to the physical assets of your business from covered perils, such as the fire, vandalism, and wind damage. The assets that can be covered by commercial property insurance include:
• Buildings if you own or your costs for improving a building you don’t own
• Outdoor signage
• Computer Equipment
Professional Liability Insurance
This coverage is sometimes referred to as Errors & Omissions or (E&O) coverage. It offers protections to businesses that provide advice and/or service to others. Businesses of all types from accountants and attorneys to hairdressers, contractors, dentists, engineers, and chiropractors need this type of insurance coverage.
Employment Practices Liability
Hiring employees can be a nail-biting experience for businesses today. Firing employees is even more difficult. Both could prove devastating if mistakes are made or improprieties uncovered as a result of laws designed to protect employees and applicants. Despite your best efforts to remain within the law, lawsuits happen. Employment practices liability insurance helps to cover the expenses of a lawsuit and up to the covered amount of damages, if awarded.
This is additional liability insurance that goes beyond the scope of your general liability coverage. It kicks in if your business is sued and the damages awarded exceed the limits of your liability coverage.
Businesses are required to carry worker’s compensation insurance if they have employees. Workers’ compensation provides for the medical care and treatment of employees who are injured or become ill as a result of their work for your business. It also covers expenses related to their recovery and replaces some of their lost income during the treatment and recovery process.
This insurance provides employees with some replacement of lost income related to disabilities caused outside of the job and for disabilities arising during pregnancy. Call us today to discuss your unique business insurance needs and review your current coverage and coverage options.