Congratulations, you’re in business! You’ve got a dream and a business plan; but what about a plan to safeguard your business from the unexpected?
Business Insurance helps protect you or business for risks… like if a fire destroys your inventory or important papers, a thief makes off with property or your business is forced to close to do an unforeseen event. BE AWARE, one quarter of all businesses do not reopen after a major disaster. The best way to protect your new business (and to keep you in business) is to purchase the right type and amount of insurance.
Business Insurance covers you against property loss, interruption and liability.
Property Coverage safeguards your business’s inventory, equipment and fixtures against theft loss or damage. There are two basic types of business policies: “named peril” which covers only the events listed in a policy and“all risks” covering all events except those specifically excluded (like earthquake and flooding).
Every day your business isn’t open is a day your business isn’t making money. Business Interruption Insurance can keep things running. There are several types, but the most common is Business Income Insurance; which covers lost revenue, payroll for your employees, expenses and other costs while you’re preparing to reopen. Premiums for this type of coverage are based on your company’s balance sheet and other factors.
BE AWARE: After a major disaster it can take more time than you think to get back on track. So check your policy’s limits. You can also get Extra Expense Insurance which covers costs like temporary relocation (while you’re waiting for damage to be repaired).
If your business is dependent on suppliers, Contingent Business Interruption or Supply Chain Coverage compensates you if damage at a supplier’s location affect your ability to do business.
Civil Authority Coverage pays if you’re denied access to your business due to damage to the surrounding area.
One out of every three small business owners has been sued or threatened with a law suit…even if your business did nothing wrong! General Liability Insurance is there to protect against this risk. The type and amount of liability insurance you need depends on the nature of your business.
BE AWARE, insurance companies can tailor liability insurance to the specific risks in your field. For example, Product Liability Insurance pays for damages and legal expenses if a customer is harmed. Professional Liability protects your business if a customer sues you for negligence or malpractice.
Employment Practices Liability covers claims for harassment, discrimination or wrongful termination.
Accidents do happen! Workers Compensation Insurance pays for the medical care of employees injured in the workplace, and replaces their wages while they’re unable to work. BE AWARE: in most States, employers are required by law to purchase workers compensation insurance.
While every business has unique needs, understanding your risk exposures and being prepared to face them is key to the success of your business. Your business is what you do best…spending time worrying about insurance – not so much. Contact an expert at JDA Insurance Group to discuss how getting the right insurance coverage can let you focus on the important work of growing your business.