In addition to Business operation policies discussed last time, there are several other types of insurance a business should consider.
When a business suffers a loss due to a fire, flood, or other accident, the property insurance will cover the lost property, but the business is going to be shut down until the property is replaced and the business can open again. This insurance will provide lost profits, costs, and salaries during the shut down. How much to get depends on the type of business and what other resources you have.
Additional coverage can be obtained for the period that a business is slow as it restarts giving the business time to regain its customer base.
Product Liability Insurance
Product liability insurance can be obtained to cover the business against third party claims made by persons injured by products of the business. This coverage may be included in the Business Operations Policy. This may be particularly important if you sell imported goods or food, or something you make.
Malpractice or errors and omissions coverage is particularly important for certain kinds of professional businesses. These professionals like doctors, attorneys, accountants, architects, computer technicians, and others, by the very nature of their work, can cause major losses if something goes wrong. This kind of insurance covers these professionals for negligence, errors, omissions, and mistakes protecting both them and the customer/clients.
Auto coverage should also be considered if you use your personal vehicle for business, and can usually be add to your personal policy. If you have vehicles just for the business, then you will need to make sure that you obtain an auto policy for the business.
Worker’s compensation insurance covers the business for injuries to employees while on the job under the state’s worker’s compensation program.
Employment Practice Liability
Employment practice liability insurance is a kind of insurance that protects businesses from claims by employees related to issues like discrimination, harassment or wrongful discharge. Depending on the cost, this kind of insurance may not be worth the risk for smaller businesses.
Officer and Director Coverage
Directors and officer liability coverage will cover directors and officers of the company for costs, expenses, and liability incurred because of claims against them by shareholders.
Disability insurance can provide replacement income to officers or employees when they become disabled and cannot work in the business, and allows the business to then use the money that otherwise would go to the employee to be used to get a replacement during the disability. Disability overhead policies can also be obtained to provide the business with income when a key producers is disabled in order to keep the business going while the key producer is out. Similarly, life insurance on key persons can also be obtained with the business as the beneficiary and used to give a benefit to the family as well as to keep the business going.
Finally, health insurance is another area of insurance that a business should consider.