Business Insurance: One Size Doesn't Fit All
If you're a business owner, you need insurance. But how much and what type can vary greatly depending on your type of business, resources, assets and specific needs. So what should you consider before purchasing a business policy? Here are some risks and coverages you will want to take into account as you work with Mitchell Insurance, Inc. to find the right plan for you.
- Risks to data and cybersecurity: If your company works with sensitive client data, you need to be protected in the case of a serious data breach. Similarly, if your business relies heavily on technology, you might consider broader cyber insurance coverage in case a virus or other technological problem causes a substantial disruption to your business activity. Almost every business has a website and even that can expose you to some level of cyber risk. E-mails present risks; servers present risks; buying on line presents risks - all need to be evaluated in light of your current insurance and potential gaps.
- Risk of business interruption: If your production or services must be suspended due to extreme weather, property damage, theft, or a natural disaster, would your business survive the loss of income and the cost of repairing any damage? A comprehensive business policy will help your business to survive anything that comes your way. A wise mentor told me recently to consider "Are you ready for the fire that didn't happen yet?"... it's an excellent question to consider.
- Employee-related risks: Most businesses are required by federal law to have workers' compensation, disability and unemployment insurance to protect their employees. Make sure you understand the specific requirements for your type of business in your state. Beyond mandatory coverage it is important to consider the potential protection offered by Employment Practices Liability (EPLI), 3rd-party Fidelity exposure, and similar exposures.
- Risks to property: Property can include the location and building you operate out of, as well as equipment and product. Different types of coverage will cover damage or loss to your property for a variety of reasons. Sometimes property should be protected as Buildings or as Contents, but other times specialty forms should be considered.
- Liability risks: Even if you're just running a small business out of your own home, it's important to have some type of liability coverage. If you, your products or services cause harm or injury, or if a client simply gets injured on your property, liability coverage will help to pay costs associated with that damage. For small businesses, there are other specific types of liability coverage (professional liability and product liability, for example) that may make sense. We even have markets for Home Based businesses that have graduated beyond the hobby stage as well as consulting-type businesses that spring from specialized training and experience.
- Driving and travel risks: Whether you use company vehicles or simply ask your employees to conduct business using their own, it's important that you have coverage--and your regular auto insurance may not provide it. A commercial auto insurance policy will ensure that you're covered should something happen while conducting business on the road.
Purchasing a Business Owner's Policy
Many of these coverages can be combined in a good business owner's policy. Whether you need a strong basic policy or specialized coverage, your insurance agent can help you find the coverages that are right for you. Whatever you do, make sure your business is fully covered before it's too late.
For more information about business insurance, call or contact Mitchell Insurance, Inc. today.