Written by Emily Bollinger Miller
I’ve worked with many different businessowners, with businesses at various stages of existence, and they all have one characteristic in common: each is unique.
From new ventures to established companies, a company’s risk profile is dynamic and requires constant evaluation and monitoring to ensure the insurance program is appropriate and comprehensive. Establishing a strong relationship with a risk advisor that understands your business, your goals and your tolerance for risk is key. A new pair of shoes are worthless if they don’t fit, and it doesn’t pay to let sub-standard insurance coverage give you blisters.
I often get the question, “When do I need to start Insurance for my business?” The answer: yesterday. As soon as you establish an entity (for profit or non-profit) it is imperative that you discuss your plans moving forward with a risk advisor or agent so that a General Liability policy can be established. General Liability coverage protects the business against claims involving premises liability, products liability, on-going and completed operations liability, as well as personal and advertising injury. Simply, this type of policy will provide coverage for any claim alleging that injury, harm, or property damage resulted from your negligence.
Commercial Property coverage is another policy to consider when a business owns property. Buildings, contents, equipment, machinery, inventory, computers etc. can all be covered for physical damage. Damage from perils such as fire, wind, hail, lightning, and theft can also be covered. In addition, this policy can provide coverage for business interruption, replacing expected income and covering normal expenses realized after a covered claim. This policy helps to make the business whole; both for what you lost and what you would have gained had you not experienced the loss. If the business’s operations qualify, a Businessowner’s Policy (BOP), combines both general liability and property coverage.
In our emerging and ever-changing world of technology, Cyber Liability Insurance rounds out my top 3 of essential coverages. A business can be operated from a small computer that fits in the palm of a hand, by a person located anywhere in the world connected to public wi-fi. While efficient, this is a recipe for disaster. One small computer virus, hack, or identity theft case can be catastrophic. Time (and revenue) lost rebuilding your network and restoring data, communicating with clients or vendors that may have been affected and forensic investigation, are all concerns of the modern-day business owner. Most cyber liability companies assist the policyholder through the process of recovery after a loss. At the very least, knowing a team of professionals is at your service following an incident is reassuring.
Finally, my disclaimer, (of course an insurance professional has a disclaimer): it is important to read your policy and review the coverage for exclusions. Discuss any concerns with your agent and ask for clarification. One-size fits all does not exist in the world of insurance, and it’s a truly wild world out there.
