Small business insurance provides coverage to businesses from numerous risk and liabilities. It provides coverage to business in multiple areas. For example, there are several parts to a business insurance:
It consists of General liability insurance, property insurance, Business Owner’s Policy (also know as BOP), Commercial Auto Insurance, Workers’ Compensation Insurance, Professional Liability Insurance and finally, Cyber Insurance.
When covering a business, one needs to review any areas of the business that it is prone to risk from. For example, is the business property covered in case of a fire or damage by other means or even theft. If there is a fire, there is damage to the building itself, the property inside of the business such as computers, desks, chairs, and any inventory plus possible loss to funds that may be stored within the business. Therefore, we need to ensure that the business property is covered.
Next, we need to cover the employees of the business from any injury while working at the job site. This is known as Worker’s compensation insurance. Worker’s compensation insurance provides coverage for employees’ medical expenses and lost of their wages due to the employee being injured while at work.
It is also important for any business owner to have general liability insurance in case there is a customer who gets injured while visiting the business site. For example, if a customer is visiting a business and there is wet floor, and he/she slips and falls and injures himself. The General liability insurance will cover the medial expenses for this customer.
It may also be necessary to have Professional liability insurance. For example, a medical doctor may need a malpractice insurance in case he/she makes an error with their patient in delaying to treat the patient. This professional liability insurance protects the doctors to cover this error.
Professional Liability Insurance also covers Error and Omissions (also known as E&O). For example, if the professional misses any information in a document or by accident documents wrong information. E&O coverage protects business owners from financial losses.
If a business utilizes secure digital data, it may also be important to look into cyber insurance to protect business owners from cyberattacks.
It is always important to evaluate the risks associated with your business to determine which types of insurance coverage may be needed. Regular reviews of business insurance policies are also recommended as businesses grow and change over time.
For any business insurance or commercial insurance, please feel free to contact Karstens Financial to keep your business secure. Karstens Financial carefully assesses businesses for their insurance needs and can create a comprehensive and tailored coverage plan.