Business Insurance

Scraping together resources and getting a business off and running is no small feat. Apple began in a garage. Pepsi was conceived in a dining room. Yahoo was a crackbrain idea that took years to work through and look at it now! Every business, no matter how large and developed, started small. Great minds came together, developed models, failed and tried again, failed and tried again, failed and then … finally broke through.   But just because the breakthrough occurred, the business is up and running and things are looking bright, at this exact point, taking a break is not advised. Here is when you need to start thinking about how to protect said business, and the tried and true method is business insurance. Business insurance exists because as a business owner, regardless of the size, your worst nightmare is an icy parking lot, a wet entryway, and an impending customer making his/her way to your place of work, and BAM! Slipping and falling, and in turn, suing you. This is just the tip of the iceberg however, the amount of damage than can be caused to a business based on owner negligence is downright scary.   The first thing to know when it comes to business insurance is there are many types of liability insurance. The most basic is what’s known as the general liability policy. This covers settlements, fees, judgments, medical expenses and damages to the property. From there, more specific coverage items can be included such as advertising, property, product, cyber liability, errors and omissions. Second is the issue of coverage. A commercial general liability policy for example covers you, the company as an entity plus all the employees that work there. An employee is covered by the policy if they’re officially employed and an accident takes place during working hours or engaged in something at the specific behest of the firm. However, all cases are unique, and there are some creative lawyers out there.   Third, take note that a general liability policy might be too general for a business. If you are operating a high-tech business for example, or one that is highly diverse, the general liability policy is certainly way too general. Separate policies addressing issues that are not covered by most general policies are common but need to be addressed case by case. Before embarking on a general search, the U.S. Small Business Administration recommends engaging in your own risk assessment.

Fourth, most insurance companies will often provide you, the policyholder, with a lawyer. In the event of a lawsuit this man or woman will quickly transform into your best friend. Honestly, this is excellent piece of mind and a real value added on the insurance company’s part. And lastly, know that an annual coverage check-up is a must. Make it a habit to sit down and review business risks and insurance coverage. Year by year these things can change and if you don’t review them annually, trust us, they’ll never get reviewed!