Does My Business Really Need Insurance?

Did you know that there is a type of commercial business insurance for any kind risk you can imagine? When people think of these types of coverage they probably think about insuring factories or storefronts. The truth is that there are ways to insure just about anything, just look at professional athletes and actresses that have policies on their legs for millions of dollars in the event of an injury…like Troy Polamalu who insured his hair for $1Million (just in case he gets into a fight with scissors and loses). My point is that if you have a need for something to be insured for your business then I can guarantee you that it can be written into a policy.

Most people hate to talk about insurance, but most businesses no matter how big or small need to have some kind of insurance in order to operate and assure their business partners of their solvency in case of the unthinkable. If you are looking to protect yourself from risk your goal in the end is to purchase the best and most affordable coverage. We have listed some of the more popular types of business insurance below. This way you can start making a list of the different types available that you might need for your business to operate smoothly and efficiently.

Whether you are starting a new business or have owned a business for many years, commercial insurance can be one of the most important financial investments you make in the life of your company. Operating a business is challenging, even without having to worry about suffering significant unforeseen financial loss. Commercial insurance can protect you from some of the most common losses experienced by business owners – losses such as property damage, business interruption, theft, liability, and worker injury. Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a severe loss or recovering with minimal business interruption and financial impairment.

The 9 Different Types of Major Commercial Business Insurance:

1) General Liability – One of the reasons general liability is so popular is that it covers and protects general things such as injuries, property damage, accidents, or negligence claims. Some policies are also designed to protect your company in the case that people slander your business reputation and it costs you money or clients.

2) Property or Casualty – Usually these types of policies are lumped into general liability insurance, but they can also be interchangeable, so pay close attention when you are reviewing your policies. Remember, peril specific policies such as flooding, fire, crime, and business interruption is not something automatically covered under most property insurance, so these types of coverage will need to be added separately.

3) Product Liability – This is a way of creating a liability shield. As you are responsible for your products, insurance will be able to cover you in case your product causes harm or does not operate as intended.

4) Life & Disability – Personal life and disability insurance aside, you might want to consider insuring key employees in case of death or disability. The employees that make your business operate smoothly can create business problems if they are no longer around to help.

5) Commercial Auto – This is the same type of insurance as you have for your personal car but it is meant to cover your business fleet.

6) Business Interruption – This insurance protects you in case there is an unforeseen interruption in business. Some example can be: accidents that shut down your operations or a natural disaster that make it impossible for you to operate your business.

7) Home Business – Your home business is NOT covered under your homeowner insurance. Therefore you cannot recover business assets if they are destroyed by fire, flood or accident. As some policies cover home business, they are nowhere near as comprehensive as if you had home business insurance.

8) Internet Business – The number one problem with having an internet business is the security for your customers. Insurance can cover damage to your servers and any data lost as a result of an attack on the integrity of the website. It can be a stressful process but if you have insurance the inconvenience is time not money.

9) Specialty Insurance – Dentists, Doctors, Accountants, and Not for Profits can all have their businesses covered for miscellaneous things that may go wrong such as errors on taxes or malpractice suits. As a matter of fact all active, non-government lawyers are required to have this insurance.

Now that we have discussed some of your options for attaining commercial business insurance it’s time for you to think about what insurance your business needs. A couple of things to keep in mind when talking to insurance companies: Customer service goes a long way with insurance agents. Make sure you get an idea that they are going to be there for you for the long haul, not just for when something bad happens. Most good insurance agents will check in with you periodically to see if anything needs to be updated in your policy. Shop around and get a bunch of quotes from different companies, because you will have more options and the negotiating power to get the best overall coverage for your company. Lastly, if any issues, concerns or problems arise please do not hesitate to contact The Jacobs Law LLC and we can help you with your insurance needs.