Business Owner's Insurance
Some types of insurance are optional when running a business and others are required by the laws of the state in which the business is operating. In any case, certain types of Business Owners’ Insurance can provide the protection needed in order to safeguard against major suits being filed against the business. It is true that business insurance can be quite costly, but it is also possible to find reasonable rates by doing a little online comparison shopping. At the very least, a business should carry, and may be required to by law, the following types of business insurance.
One of the most important types of insurance that a business can carry is general liability. This covers any legal suits claiming injury to a person or persons as well as damages to property. Other things covered would be legal defense provided by a covered attorney, and will pay up to the policy limits for settlement in case of an adverse ruling. General liability also covers anyone working in a capacity for the business such as volunteers, directors/management and other paid employees.
Professional Liability – Errors & Omissions
Professional Liability/Errors & Omissions is specifically set up to cover certain lawsuits that would be the result of errors, omissions and anything construed as a wrongful act during the act of professional services being rendered for a fee. This particular type of business owner’s insurance coverage pays purely monetary damages, unlike General Liability that pays for such things as injuries. In other words, Professional Liability covers any monetary loss sustained as a result of an act or omission on the part of the business owner or anyone acting in an official capacity for the business.
Each state has very specific Workers’ Compensation legislation, but it is safe to say that it is required in most if not all states. This insurance product would cover losses such as lost wages, medical bills and even lump sum settlements to employees injured on the job. It would also cover subcontractors who did not carry Workers’ Comp at the time of injury and that injury was directly related to injuries sustained while on the job for the business. Lump sum settlements are usually reserved for such things as certain disfigurements or disabilities arising from the injury and also death benefits. This coverage would ‘kick in’ on those occasions, albeit rare, when the injured employee would have opted out of the government Workers’ Comp system.
Sometimes the policy limits of Employers’ Liability, General Liability and perhaps a Business Auto policy would be too low to cover sustained injuries and other losses. For such occasions there is a type of insurance called an ‘Umbrella Policy’ that is set up to extend the limits of the underlying policy mentioned above. This type of insurance can be obtained quite reasonably and it provides that extra peace of mind and comfort margin for the business owner. It is an added safeguard against losing the whole business resulting from a major lawsuit.
There are other types of insurance a business owner might consider carrying as well, such as business auto insurance. In fact, most states mandate that vehicles used in the line of business operations be covered by a business auto policy. One thing to keep in mind in terms of cost is that the more types of insurance policies your purchase from the same company, the more likely you are to receive a discount for purchasing multiple products. Compare quotes from several providers so that you can see them side by side. A good online insurance broker can help you accomplish this easily and quickly so that you have all the coverage you need to protect your business against loss.