Business insurers make use of some pretty arcane terms that only they (and some lawyers like me) understand. What business owner thinks of "personal and advertising injury" coverage when they want protection from trademark infringement claims? When you want to insure the business against any liability from rogue employees, you don't think of "employment practices liability" coverage. So, I have written this FAQ list to assist you in finding how to insure the most common elements in business using lay person terms. Here we ask the question:
How do I Insure my Business'...
AUTOMOBILES?
Automobiles and cars used in business must be covered by a commercial auto policy. Sometimes the commercial auto coverage can by combined in a business owner's policy or comprehensive commercial general liability policy. Before you purchase coverage or talk to your agent consider some points and gather some information. Finally, if you run a small business or use your personal automobile, you will still need the coverage and cannot rely on personal auto insurance.
BUILDINGS AND PROPERTY?
Buildings and property are covered by property and casualty insurance. Seems simple enough? These coverages are well named, but deceiving because there are many exceptions to what is a covered loss and what is not. Flooding is one example of a type of property damage to a building that is not covered without an endorsement or additional policy.
PRODUCT?
Product liability insurance covers your business for damages caused by a product manufactured, supplied or designed by the business. If your product is alcohol, then a liquor liability policy will protect your business from claims related to alcohol consumption by customers.
EMPLOYEES?
Employers must participate in state workers' compensation programs to cover employees if they are injured at work. Health insurance, health savings accounts, and Section 125 plans can offer health benefits to your employees.
Employees can be subjected to discriminatory or sexist acts by other employees or managers and you business can face liability from such claims. Employment practices liability coverage can protect the business from such claims.
OPERATIONS AND CASH FLOW?
Disasters can stop business operations. Business interruption coverage can pay for lost cash flow and return you to operational capacity.
CUSTOMERS AND OTHERS?
Protection from the claims of customers and others can be provided by a commercial general liability policy. This is the insurance most business owners think of when purchasing business insurance. Think of it as insurance against lawsuits.
OWNERS AND KEY PEOPLE?
Life and disability insurance can protect the owners and key people of a business. It can also be used to insure business continuity. If a partner is temporarily removed from practicing their profession, professional overhead expense coverage can assist the business until the partner returns.
You can learn about specifics by following the links.
