Small Business Insurance Basics: 10 Things You Need to Know Now

When you hear the words “company insurance,” you may think this just applies to large- based companies. But in actuality, this is a significant issue for any sized company – in the largest corporations to the smallest, one-person performance and everything in between.
Whether you’re simply at the beginning stages of getting a business idea up and running or already own an established company, it’s important to know some basic things about how company insurance functions, and what kinds you might need. Here are a couple of recommendations to get you started – or to provide you with a quick review.

1. Property Insurance – know what it covers

Home insurance covers not only the physical structure that houses your business enterprise, but also the contents of this structure. This could include equipment, office furniture, and even stock.

2. Liability Insurance is a must

Nobody likes to think about it, however getting sued is always an opportunity for a business, regardless of its dimensions. Having the correct amount of liability insurance is of extreme importance. Liability insurance can help with expenses when your business is sued, but it could also help pay for expenses if anybody is injured because of a faulty product or service.

3. Worker’s Comp – check your state’s requirements

If your company has employees, it is possible that you’ll require employee’s compensation insurance. If anyone is injured at work while working for you, worker’s compensation insurance can help pay for medical expenses. Most states require worker’s comp for several sized businesses, but be sure to check your state’s requirements to be positive that you receive the proper kind – and – level – of policy.

4. Errors & Omissions

E&O Insurance is very similar to Liability Insurance, but it’s specifically for professional services businesses. This form of insurance can cover costs that may be incurred due to accusations of negligence, or the failure to execute your professional services. Even in the event you have not.

5. Got employees? Consider EPLI

Employment Practices Liability Insurance applies to situations where companies are sued for matters like discrimination, sexual harassment, or wrongful termination. Previously, these topics were just of concern to larger businesses, but in the modern environment, companies of all sizes could be subject to these sorts of suits. If your company has employees, it’s sensible to look at adding EPLI coverage to your Company Owner’s Policy (BOP, described below).

6. Is Key Employee Insurance worth your time?

Many times, the achievement of a business depends on the participation of specific employees. If one of those employees were to pass away unexpectedly, their absence might impact the sustainability of the business enterprise. The beneficiary of a crucial employee policy is the company itself. Key Employee policies may often be asked by lenders, to meet certain credit requirements.

7. Cyber Liability Insurance is gaining in popularity

A growing number of business will be transacted online. And a growing number of data are being stored in “the cloud,” allowing for ease of accessibility and decreasing the need for companies to invest in storage or storage facilities. But as more business is transacted electronically, as the further that data is opened up to theft and hacking. Cyber Liability Insurance can help safeguard companies should they undergo an information breach; it will help cover costs which range from legal expenditures to public relations costs.

8. Directors & Officers Liability Insurance is NOT the same as E&O

As its name implies, D&O insurance specifically protects the officers and directors of a firm. D&O insurance protects the company, and sometimes the directors and supervisors themselves, in the event of legal action brought for alleged wrongful acts. While lawsuits like these are less common in the USA if your company operates outside the U.S. this type of coverage is absolutely worth exploring further.

9. Don’t overlook the car!

When you have vehicles which are owned by your enterprise and are used exclusively for conducting your business, they won’t be addressed by personal car insurance; a separate business auto insurance plan is needed. There are various kinds of coverage available, and also car insurance can sometimes be bundled into a Business Owner’s Policy. But, individual strategies may be more easily customized.

10. Think about a BOP

A Business Owner’s Coverage may be a wonderful means to package common types of  cooperators business insurance to a handy policy. BOPs are all customizable and will help save you money because there are a number of kinds of coverage united into a single coverage. Buying a BOP may also simplify the insurance procedure, since you are going to have just 1 policy, 1 renewal date, and also a single premium payment to deal with. While combining policies can be exceedingly convenient, it should only be performed if you could truly have all of your insurance needs fulfilled by a single product. If your business is not an unusual nature, or you have specific insurance needs, it might be better to still consider individual policies. Working with a trusted insurance agent or broker can help you ensure you are getting all of your business insurance has to be taken care of.