Understanding your small business insurance package is critical.
Insuring your business is one of the most important things you will do as a business owner. The peace of mind which comes with having insurance in place to protect your business is very rewarding. What’s just as important, is knowing that your insurance will do what you believe it will.
An important term for you to understand is exclusion. Almost every insurance policy will have exclusions written into them.
For instance, most general liability polices for business exclude professional liability. While the general liability policy is written to cover bodily injury, personal injury and property damage, as well as some types of advertising injury, something is missing. It doesn’t cover claims against professional failure of performance or negligence of professional standard. One lawsuit relating to professional liability can devastate a business.
Professional liability insurance or errors and omissions insurance is needed to protect against this exclusion of coverage.
Another exclusion generally found in a general liability policy is unfair or discriminatory employment practices. This includes hiring and termination claims as well as disciplinary, job title and responsibility changes, and charges of harassment. Again, separate employee practices insurance is needed.
Property insurance will also have exclusions written into them. For instance, flood damages are generally excluded. Other weather disasters such as wind may also be excluded and need separate policies written such as flood insurance. Debris removal and business interruption insurance often aren’t covered.
Take a close look at your commercial business insurance and look for exclusions. If you have any questions, talk to your licensed insurance professional. Have that professional point out exclusions and coverage options available if needed for your business. Then, you are able to really have peace of mind.