Insurance is a Financial Factor for your Business

As business owners, we know that there are different aspects of running our companies that are part and parcel of owning a business.  From payroll, taxes and HR to customer service and product quality, these matters are the bulwark of any business.  However, you should strongly consider adding insurance to that list and placing it near the top.  Without insurance, all of these other elements are left unprotected and at risk. 
 
One of the more obvious reasons to purchase business insurance is to protect your physical assets; your building, equipment and other tangibles.  If you have employees, Worker's Compensation is a mandatory policy businesses have to protect their employees from injury during the course of employment.  Did you also know there are other risks you face as well?  In the age of technology, businesses face all new perils; the good news is that there are insurance products available to protect you and your business.   

Let's discuss the following types of coverage that are available to protect your business.

 
1.    Property:  This is one of the more basic coverages, but still vital.  Property insurance will cover your building and typically the equipment inside as well.  Certain policies may also cover equipment breakdowns and clean up after a covered loss. 


2.    Liability:  This is a must have. Without it, you may lose your business from an uncovered claim.  There are many different types of liability coverage.
a.    General – This protects you from claims of bodily injury or property damage from a third party against your business.  If you are sued due to a third party accident or injury that occurs on your premises, this coverage may protect you and cover certain associated costs for litigation.
b.    Products – A product liability policy is intended to protect you in the event a product of yours is defective and has caused bodily injury to a third party.
c.    Professional – This covers those companies that are advisory and service oriented.  Also knows as errors and omissions, these policies provide protection against negligence. A common example of this is Malpractice insurance for physicians.  
d.    Employment Practices – This protects your company from claims brought forth by one of your own employees dealing with wrongful termination, discrimination, sexual harassment, breach of contract and can even provide coverage for wage and hour law violations. 
e.    Employers Liability – This protects your business against lawsuits due to employment related injury of your employees whose family and/or relatives bring lawsuits.


3.    Vehicle Coverage:  Your company owned or leased vehicles need to be covered in the event of an accident just the same as your personal vehicle. Businesses also need to carry Hired and Non Owned Auto Liability to protect against bodily injury and property damage caused by a vehicle they hire, including rented or borrowed vehicles or caused by non-owned vehicles, including employee owned vehicles.


4.    Data or Cyber:   If your company utilizes electronic data this is the coverage that can protect your business from a data compromise or breach.  In today's world, this coverage is a must.  We all maintain personal data from either customers, clients and or employees.  The loss or theft of this data can lead to lawsuits for violation of privacy as well as possible large out of pocket expenses to restore lost or damaged data.  


5.    Business Interruption:  Going hand in hand with property insurance, when your business has a covered loss and your operations have temporarily shut down,  this coverage makes up for lost income and profits incurred during this period. 


6.    Health Insurance:  As the name implies this provides health coverage for you and your employees.


7.    Life and Disability:  In the event of a death or disability of key personnel, this will provide coverage. 
 
As you can see there are many types of coverage available and it may even seem a bit overwhelming. Fortunately, there is something called a Business Owner's Policy or more commonly referred to as a BOP.  A BOP is a bundle of coverages in one policy that includes a variety of the coverages mentioned above.  Most businesses that obtain a BOP typically will pay less in premiums versus getting these different policies separately.

To find out more information, contact an insurance professional you trust.  They will be more than happy to go into detail and find the coverage that fits your business to ensure you are protected and your business will be sustained. 
 

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