Are you a Small Business Owner? Make Sure You are Ready for Any Situation and Protected with the Right Insurance Coverage
Posted in: Commercial Insurance
If you are a business owner there are a number of important insurance issues you need to consider to ensure you are protected. Business Insurance policies can be very complex in both the scope of coverage and restrictions that may apply. The following is a break-down of 9 common situations that could happen to your business and the corresponding insurance solution to make sure you are protected.
- General Liability: covers third party (anyone other than you or your employee) liability claims, namely claims against you from a customer or visitor on your premises, or who may be injured by your business activity or product.
- Example: A mail carrier, delivery person, or customer slips on your driveway, trips on your steps, or injures themselves on your premises.
- Business Property Insurance: insures your contents for inventory both on and off premises (for example at a show or in a vehicle).
- Example: A warehouse fire destroys your entire inventory.
- Employee Dishonesty Coverage: protects your company from financial loss resulting from employee theft of money, securities, or property. Click here to download a copy of PSA’s Employee Dishonesty Guide.
- Example: An employee steals money from your cash register.
- Workers Compensation: provides compensation for your employees for medical care in the event they are injured on the job, including medical benefits, income benefits, death benefits, and rehabilitation benefits.
- Example: You own a painting company and one of your painters falls off a ladder while on a job and is severely injured.
- Business Auto: provides insurance coverage for your company’s cars, trucks, trailers, vans, or other vehicles.
- Example: You’re a florist making a delivery in the company van when another vehicle runs a Stop sign and hits you.
- Non-Owned Auto Coverage: protects the company for vehicles owned or used by others (such as an employee) that are used in the business of the company.
- Example: One of your restaurant deliverymen driving his personal automobile hits another vehicle on the way, and the company gets sued.
- Professional Liability: covers you for the rendering or failure to render professional services. If you design something or perform work which does not meet expectations, you could be sued for the cost of the contract, damages, or lost business revenues by your customer. Common examples including Doctors , Lawyers, Accountants, Architects, Insurance Agents, but would also include Consultants, Designers, Travel Agents, Computer Programmers, Software Designers, Systems Analysts, or anyone who is delivering a service based on expertise.
- Example: You are an architect and the second floor of an office building that you planned falls through (not caused by a natural disaster).
- Business Interruption Insurance: provides protection from loss of income if your business suffered a disaster including while your facility is either closed because of the disaster or in the process of being rebuilt.
- Example: A major storm hits and your café is completely flooded. You have to close for a month to fix all of the damage.
- Equipment Breakdown Insurance: provides coverage for the accidental breakdown of equipment.
- Example: A power surge damages your computer network.
While these are the primary concerns, there are still many others. The best advice is to seek out a qualified professional who independently can represent you in the marketplace to find you the best coverage at the best price. You have worked hard to build your business, make sure you also work hard to protect it. Please feel free to contact me directly at lee@psafinancial.com.
