Business Insurance: Five Things You Haven’t Considered Yet
There are few financial decisions that will be as important to the success of your business, as finding the perfect insurance policy. Only in the rarest cases is business insurance not needed, and anyone starting their own sole proprietorship, corporation, or LLC, should consider their coverage options before ever opening their doors.
You must have coverage from everything to employee health and safety to intellectual property and copyright insurance. Here is a look at five aspects of business insurance you might not have considered yet.
Private Policies Won’t Protect You
One of the most common mistakes new business owners make is believing their private policies will provide adequate coverage. Private vehicle insurance and homeowners insurance might not even cover your personal possessions if you use your vehicle for business purposes, or operate from out of your home.
Of course in some instances with certain small businesses a private policy might be the best option, but for an expanding company, you’ll want to be under one coverage plan. Make sure you look over each clause to make sure you aren’t missing out on anything you might need for your industry, brand, or area.
Product Defaults Can Cost You Your Business
There are quite a few laws in place designed to protect consumers from dangerous products that do not work as intended. No matter how much testing goes into product development, a single accident could result in huge legal fees. Product liability insurance will protect your company from financial losses due to faulty products and lawsuits.
You’ll also want to protect your products under law with copyrights and trademarks. The best way to do this is to talk with a legal professional who can find you a good policy for your overall company and products.
Negligence and Malpractice Happen Regularly
In addition to product liability insurance, professional liability insurance is one of the most common riders for business insurance policies. This additional protection will help a business owner with legal fees that come from negligence, malpractice, and errors from your services.
Professional liability insurance is also referred to as errors and omissions (E&O) coverage, and according to medical malpractice lawyers like McLaughlin & Lauricella, P.C., is legally required in some industries such as healthcare. Make sure your employees are made aware of these laws and are operating under them at all times. They should also be covered in case of injury or damage when possible.
You and Your Employees Might Not Be Covered
Policies that include group health insurance will help with losses from medical bills, but it might not cover legal fees in some situations. If a personal injury attorney is needed, owners without general liability coverage or an umbrella policy may have to dip into the company’s assets to absorb those losses. Make sure you have a plan in place for personal protection and that everyone follows correct safety procedures.
A Safe Work Environment Will Lower Costs
Maintaining a safe work environment will not only protect your employees, but will also reduce your insurance premiums. Insurance companies often offer huge discounts to companies with a great safety record and those that are proactive about security. Everything from safety seminars to regular emergency drills could make your policy more affordable.
Look into what discounts you can get with each proactive measure. You can save a lot of money and lower costs when you don’t have to insure for every accident that could easily be avoided.
Business Insurance
Having the correct policy in place will mean the business you have worked so hard to create is protected from all of the most common financial and legal threats.
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Category: Business
