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Types of Insurance Small Business Owners Should Have


General Liability Insurance – Provides coverage in the event that an owner, employee, or products and services cause or are alleged to have caused bodily injury or property damage to a third party. Property Insurance – Protects a building (if owned) and busi- ness property (office equipment, computers, inventory, tools, etc.)


has sold or been involved with policies for a litany of insurance categories, including homeowners, renters, universal life, whole life, customer service, term life, flood and marine, among others.


Choosing the Right Coverage Whatever services or products a store is providing, customers come to a business with certain expectations, seeking merchandise and expertise that only you can give them. So what happens if an unfortunate event cuts into margins or forces a store to close? What if an Ø


in the event of a fire, vandalism, theft, or water or smoke damage. Business Interruption/Loss of Earning Insurance – Protects earnings if a busi- ness is unable to operate sufficiently. Business Owner’s Policy (BOP) – Combines all required coverage for a business owner, including: business interruption, property, vehicle coverage, liability, and crime insurances. Te coverage can be altered to fit your individual needs, and bundles can cost less than the total cost of individual policies. Commercial Auto Insurance – Protects a company’s vehicles, including vehicles that carry employees, products or equipment. If there are no company vehicles, a business can still obtain Non-Owned Auto Liability. Non-Owned Auto Liability Insurance – Protects the company if an employee who is driving during employee business hours lacks insurance or has inadequate coverage. Worker’s Compensation – Provides insurance to employees who are injured on the job and covers wage replacement and medical benefits. In exchange, an employee gives up the right to sue the company for the incident. While laws vary by state, all require business owners to have worker’s comp if the business has W-2 employees. Professional Liability Insurance – Also known as errors and omissions insurance, this policy provides protection against claims that the business improperly ren- dered professional services, or failed to provide services. Take note that General Liability Insurance does not provide this protection. Directors and Officers Insurance – Protects directors and officers of a company against their actions that might affect the profitability or operations of the com- pany. If a director or officer of the company gets embroiled in a legal situation, this policy can cover costs or damages resulting from a lawsuit. Data Breach – While business owners are responsible for protecting sensitive or private information about employees or clients on computers, servers or paper files, this policy will provide protection if confidential information is exposed. Equipment Breakdown Insurance – Also known as boiler and machinery insur- ance, this coverage protects against breakdowns caused by power surges, motor burnout, boiler malfunction, and operator error. According to the Nationwide insur- ance website, “it covers the cost to repair or replace damaged equipment, costs associated with time and labor to repair or replace equipment, business income losses when a covered breakdown causes partial or total business interruption, and cost to replace spoiled stock or materials.” It is highly encouraged to have this policy even if leasing a building or using equipment that belongs to others. Personal Umbrella Insurance – Applies when looking for coverage in addition to what existing coverage. As an extension to existing insurance policies, it can cover different types of claims and is usually sold in increments of $1 million per claim. It is used only when liability or other policies have been exhausted.


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