What kind of insurance does your business need? What kind of insurance may be overlooked? What if you’re a home based business or working in a leased space?
There are plenty of questions and types of policies. Certainly, a starting point for any business is a general liability policy and a property insurance policy. Beyond that, let’s look at other coverage options you should be asking your agent about:
Cyber Theft of your Business Bank Account: Over1 billion dollars a year is stolen from business bank accounts and credit card processing, according to Bloomberg News. Of these, over 70% are stolen via fraud attacks. There’s a new product on the market that will cover your commercial business account against cyber theft or fraudulent wire transfers. Under the current banking laws, FDIC insurance doesn’t cover small business bank fraud; it only covers you against your bank becoming insolvent and folding.
Errors and Omissions Insurance: Also known as professional liability insurance, this covers anyone who presents themselves as an expert and provides advice or consulting services for a fee. If a project goes poorly and the client sues, you will be covered for your legal fees and defense costs. Consider a million dollar coverage as a starting point in protecting your business.
Commercial Liability Umbrella Insurance: This is extra insurance if you exceed the limits on your general liability policy or commercial auto policy. It is typically bought in one million dollar increments.
Data Breach: If the business stores sensitive or non-public information about employees or clients on their computers, servers or in paper files they are responsible for protecting that information. If a breach occurs either electronically or from a paper file, this policy will provide protection against the loss and damages.
Directors and Officers Insurance: This insurance protects the officers and board of a company against their actions that affect the profitability or operations of the company. 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.
Don’t be shy about asking your agent if these or other types of coverage are available or need to be considered. The ultimate responsibility of protecting your business falls squarely on you as the business owner.