While there are many reasons for considering the purchase of insurance for your business, the Small Business Administration recommends that before you purchase any insurance you need to consider the following factors: 1. Assess your risks. Does your particular kind of business carry with it certain risks, accidents or the increased chance of lawsuits? 2. Make sure that you find a reputable agent. This is a critical part of the decision-making process because a good agent can make all of the difference in assisting you in getting the right insurance as well as processing any claims in an efficient manner. 3. Make sure that you do your homework. There is a multitude of different companies, plans, and types of coverage. Focus on coverage that is important to you and then do your homework and 4. Be sure to review your specific insurance needs. You should be sure to do an annual insurance check-up with your agent. As your business develops and grows, the following is a list of insurance coverages your business must consider:
A. Small business and property insurance. This is a foundational insurance requirement for almost every business. By having this kind of coverage, you can literally avoid a disaster should there be a liability claim or property damage claim against your business. Without this kind of coverage, you may be forced into paying claims and expenses that you did not otherwise anticipate and that could be a big problem, particularly for a new company. A common example of bodily injury is if a patron or client were to slip and fall on your business premises. General liability insurance can also assist in covering the costs of claims in situations where your business damaged someone else's property. Small business insurance not only covers your business for liability claims but, quite often, many policies also can replace lost income to your business in the event of an unforeseen disaster. More often than not, many major insurance companies offer coverage entitled "Business Owner's Policy" which contains both liability and property insurance in one package.
B. Commercial Umbrella Insurance. Umbrella insurance acts as it sounds. It provides an "umbrella" or extension of your liability coverage and can come into play if a person or property damage claim exceeds the limits of your primary liability coverage. Commercial umbrella insurance can be the safety net your business needs in order to be fully protected. You should consider purchasing the same after discussing this with your agent. Generally speaking, umbrella coverage is not that expensive but, again, the additional cost will depend on the services your business provides.
C. Business Interruption Insurance. This coverage is like umbrella insurance but covers situations such as fires, floods, building collapse, or vandalism that could otherwise shut down your enterprise for an indefinite period of time.
D. Auto and home insurance riders. In many cases, a business owner uses his car for business purposes. If this is the case, your basic auto liability policy may not fully protect you. For example, carpooling to work where you transport other employees is different than using your auto on a weekend to go to the beach with your family. An auto insurance rider will cover your business for incidents that occur while you are using your vehicle for business purposes such as transporting other employees to work.
Every company has different insurance needs, depending on the specific industry, location, and nature of the business. At the Katz Law Group, we assist our clients in making sure that they are properly covered so that they can have the peace of mind to focus their energy on running their business. Our business and litigation experience allows us to assist our clients in making sure their specific insurance needs are fully covered. To this end, we have long-standing relationships with various insurance agencies that provide our clients with both value and outstanding service. Please feel free to give us a call at 508-490-8202.