Expert Advice About Your Small Business Insurance Needs

By Floyd Arthur

Launching a small business is an exciting endeavor. There’s much to consider and much to decide -- from how to obtain funding to how to structure the organization to how to execute your marketing plan. Under such stressful circumstances, it’s easy to forget (or deliberately forgo) a plan to manage risk. Nonetheless, experts warn that failing to have small business insurance, or leaving your business underinsured--even for a short time--is a big mistake.

Not sure what kind of insurance you need or even how to start assessing your needs? Check out these helpful tips from the experts at Carmoon Group Ltd. 

·         Start with a Business Owner’s Insurance Policy

A business owner’s policy, also called a BOP, offers basic but comprehensive coverage that includes property and casualty insurance, liability insurance and business interruption insurance under a single policy. Aimed specifically at small to medium-sized businesses, business owner’s policies are usually the most affordable option for an emerging firm.They are a particularly good choice for owners of home-based businesses, especially those that store inventory on the premises or see clients in their homes. (Note: A typical homeowner’s policy will not cover any business loss.)

·         Get Worker’s Compensation Insurance for Your Employees

With the exception of Texas and New Jersey, all states require employers to purchase workers’ compensation insurance to protect employees who are injured on the job. Failure to comply with this requirement leaves you liable for an injured employee’s medical expenses, rehabilitation and lost wages while he is unable to work as well as any penalties levied by the state. Be aware, too, that this requirement may apply to anyone who does work for your firm, including contractual employees, contractors and subcontractors who are otherwise uninsured. 

·         Consider Employment Practices Liability Insurance

If you have employees, employment practices liability insurance protects you and your business in the event a current or former employee files a discrimination, sexual harassment or other similar  claim. The amount of coverage provided by various EPLI policies varies widely, so negotiate with your insurer to design the broadest possible coverage at a price you can afford. Additionally, make sure the policy covers all of your employees and any outside contractor you hire. You may be held liable for their actions as well. 

·         Professionals Need E&O Insurance Too

If you provide professional services or advice, professional liability insurance, also known as  errors and omissions insurance, provides coverage for claims of negligence or failing to perform your professional duties. This is essential coverage for real estate professionals, insurance agents, consultants, brokers and any other business that could be held legally liable for the financial consequences of giving a client bad advice. 

·         Cyber Insurance: It’s Not Just for Online Businesses

The incidence of cyberattacks has been increasing over the last several years, and no business is immune. If you do business online, store data in the cloud or maintain a database that contains client’s personal information, your company is vulnerable to an attack. 

Specifically, most cyber insurance policies help defray the costs associated with a data breach, including the cost of notifying clients, credit monitoring and any fines and penalties. Additionally, most policies cover the cost of defending claims made by state regulators or clients who suffered financial losses due to identity theft. Some policies also cover liability claims related to online content or denial of services attacks in which clients are unable to access a essential website content for an extended period of time. 

Of course, every company has specific risks and specific exposures, and it’s important to choose the coverage that’s right for you. That’s why it’s so important to discuss your business and your plans for the future with an insurance professional now. Our experts are available every weekday from 9 a.m. to 6 p.m., so call us at 516-292-3780 to schedule an appointment for your insurance review. Or if you prefer, request a free consultation online and we will contact you within one business day. 

Visit www.Carmoongroup.com now!