When most small business owners talk about business insurance, they are referring to basic general liability insurance. That is not a knock on the insurance acumen of small business owners in any way, but rather an acknowledgement that the most widely recognized business insurance coverage is general liability (i.e., coverage for slip-and-fall accidents). And to be fair, general liability is an extremely important piece of a small business’s insurance program, if not the most important piece.
However, general liability is not the only coverage crucial to the success of a small business. There are other, relatively well-known coverages like property and loss of income that many small business owners are quite aware of. But there are many more beyond general liability, property and loss of income that, if left out of a small business insurance program, can have a nasty effect on a business should a loss occur.
Below is a list of important “additional” coverages every small business should consider:
- Professional Liability
- If your product or service includes expert advice, you have a professional liability exposure that is not covered under general liability.
- Workers Compensation
- Workers compensation should not be considered an obligation that must be purchased when you hire employees but rather a protection for your business against frivolous lawsuits brought on by desperate employees.
- Hired and Non-Owned Auto Liability
- If your employees run business errands throughout the day with their personal autos, your business is exposed in the event that the employee gets into an accident.
- Employee Dishonesty
- I’d like to believe that everyone is honest, but…
- Electronic Data Processing Equipment
- Computers and electrical devices often have their own (low) property sub-limit. Add this coverage to ensure your electronic equipment is adequately insured.
- Property In-Transit
- For those of you who travel, your business property may not be covered while it’s moving.
- Employment Practices Liability
- Your employees are not your friends and even if they are, they still might sue you.
- Cyber Liability
- If you have confidential or personal information on a business computer, there is a hacker trying to get at it right now.
These are just a few of the types of coverage you should consider in addition to your general liability coverage. I work for and with small business owners every single day. I know the constant cost/benefit analysis associated with every decision.
Business insurance is not “one size fits all.” Find your greatest needs and address those first. Then work your way into the additional types of coverage necessary for future growth.
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