We are asked from time to time how to determine business insurance needs, and we tell those who ask that in the end, that determination rests with the owner.
All too often, we hear from people after a disaster, “I thought it was covered under my business insurance.” This is exactly the kind of surprise we do not want people to experience. And it is an easy thing to get with your licensed insurance professional to make sure coverage is adequate.
All businesses need some kind of business insurance in order to be fully protected, and there are many kinds of coverage available.
Some kinds of insurance are mandatory in many states. Vehicle and workers compensation insurance are examples of mandatory insurance. But do not be fooled into thinking that those are the only kinds of coverage which are mandatory, or that those are the only kinds of coverage your business will need.
Below is a list of kinds of insurance available to businesses. For purposes of this list, we assume that property, general liability, and workers compensation are already part of your present package.
Business interruption insurance: This covers losses and expenses due to fire or other incidents. The policy covers salaries, rent, utilities, and even lost profits.
Directors and Officers Liability: This protects the officers and board members from suits brought against the company and its officers.
Employment practices liability: This covers against lawsuits of sexual harassment and wrongful termination.
Errors and Omissions: Also known as professional liability insurance. This insurance protects against legal claims of malpractice or failure to perform to professional standard.
Health insurance: Major medical insurance offered to employees.
Product liability insurance: This protects both sellers and manufacturers against defects and injury as a result of product use or components.
Web site insurance: This covers a variety of claims relating to the company website. It includes copyright infringement, and data breach.
Take this list and compare it to the kinds of coverage you now have. It might be a good idea to talk to your licensed insurance professional about whether those on the list but not currently used by you are important to your business.