Last week, we discussed what other personal belongings you may want to insure separately. Here, let’s look at some business assets that might warrant additional coverage.
Technology: Most companies use computers these days, and many also issue smartphones, tablets, or other devices to employees. A specialized business technology plan can cover accidental damage, liquid spills, and repair costs, among other things.
Automobiles: If your business owns a vehicle, or if you or your employees regularly use personal vehicles for business purposes, it’s a smart idea to purchase commercial auto insurance. If you choose not to obtain commercial auto insurance and an accident occurs in the course of doing business, it will likely not be covered by your personal policy.
Property: It’s possible to get extended business coverage with an endorsement to your homeowner’s policy, but if your business property includes a large amount of inventory, equipment or other valuable items, you might want to consider a separate policy. A specialized business property policy may also cover income and payroll while you are recovering your business after a loss.
Workers’ Compensation: Workers’ Comp is a necessary investment for any business owner with employees. If your employee is injured or in an accident, worker’s comp will cover lost wages and medical bills. Most importantly, by accepting worker’s comp, your employee forfeits the option to sue (except in cases of negligence).
Products liability: If you manufacture or sell products or perform certain services, it’s a good idea to add products liability to your general liability coverage. This coverage protects you if a product or service you provide causes injury to a third party later on.
Mistakes: Mistakes happen but if your negligence causes you to miss a deadline or make an omission that results in harm to a client, general and products liability coverage will not apply. Some professional liability policies will also cover legal costs associated with professional errors; but not all of them do, so read the fine print.
Natural Disaster: Just as with your home, it’s important to attend to any risks unique to your business due to location or the nature of the work. Check with your agent to see what additional coverage might be a good idea.
Cyber: Cyber liability insurance offers protection in the event of a data breach or intellectual property infringement, plus several other risks unique to doing business online. According to the Insurance Information Institute, Cyber and Privacy insurance policies are becoming more and more popular among small and mid-sized business owners.
Equipment: If your power goes out, equipment breaks, or the phones go down, it’s unlikely your property insurance will have you covered. Equipment breakdown policies will cover the cost of replacing equipment, plus income lost as the result of any major interruptions in business.
For many business owners, a Business Owner’s Policy (which offers combined property and liability coverage for businesses) is a great place to start. Work with an agent to tailor a Business Owner’s Policy to your company, and add specialized coverage as needed to make certain your business is well protected.
Questions about business insurance? Call or contact Consolidated today.