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2023-02-24
By: Advocate Brokerage
When it comes to running a business, you need a passion for what you do and a support system to help you protect your business from the potential risks that can slow down business growth before it really gets started.
As specialists in the world of Commercial Insurance, we thought it might be helpful to share information for those who are just starting their business or are looking to make sure they have the correct coverages in place. Below you will find a guide to the types of insurance that should so that you can put your focus on where it needs to be…running your business.
Professional Liability insurance is a must for business owners who work directly with customers either in an advisory role or by providing services. Professional liability protects the business from negligence claims for improperly offering services, mistakes that have been made or failure to perform. Sometimes referred to as an Errors & Omissions policy, Professional Liability insurance can help you cover the cost of damages associated with the allegation of losses due to any errors or negligence generated by your business.
When the unexpected happens, the costs of replacing or repairing business assets and property that has been damaged can overwhelm a company and sometimes lead to business failure. Putting together an insurance portfolio that includes adequate commercial property insurance is imperative whether you own or lease your place of business. It is important to note that your coverage should include a replacement cost valuation and that the coverage limits are regularly reviewed for adequacy. You’ll want to be sure you consult with an experienced commercial insurance agent, like the ones at Advocate Brokerage to ensure that your coverage is tailored for the unique needs of your business.
If you have employees, Workers Compensation Insurance is an important component for your business. Workers Comp offers replacement income and pays for medical expenses if an employee has been injured while on the job. In exchange, the employee gives up their right to sue over a work-related injury, no matter who is found to be at fault.
If doing business includes handling any personal information about customers, data breach liability insurance is important coverage to consider. Whether it is a customer paying with a credit card or maintaining a database that includes personal information for a loyalty club, there are many opportunities for a data breach to occur.
For protection from the growing trend of litigation in our society, a Commercial Umbrella Policy or as it is also known, an Excess Liability Policy is becoming a necessity. The ever-increasing number of lawsuits combined with the growing size of settlements granted by juries gives a single liability claim the power to wipe out a business. An excess liability policy provides an extra measure of liability protection for your business.
A cyber liability policy protects your business from a myriad of risks that include security breaches, theft of records, the loss and / or sharing of personal information to network and data breaches as well as media and communication liability. The type of coverage needed will depend entirely on the specifics of your business.
A Business Owners Policy, or BOP, is great for small and medium-sized businesses. Covering most commercial insurance risks, a BOP policy provides coverage for property (including the building, property, and business income), general liability, employment practices liability, cyber liability, and data breach.
The information above is merely an overview of the types of commercial insurance available. Having an insurance professional as part of your support system is a great way to ensure that your insurance portfolio covers all potential risks and fits your budget. There are other types of coverages that need to be considered based on the specific needs of your business. If for example, your business has a fleet of vehicles, a Business Automobile Insurance package would be important. If you have a large number of employees, then an Employment Practices Liability policy or Fiduciary Liability policy might be appropriate.
