New business owners are concerned to see that conditions are favorable for the success of their business, which includes obtaining the protection of business insurance. However, it is possible that business success and longevity may cause complacency. Ten years ago, you might have started your business with just a small office space and one computer. Yet, today you have an office full of employees and equipment. You may now need to make changes to your original insurance coverage.
It is common for small businesses to start out with basic insurance coverage, such as Commercial and General Liability policies. However, as your business evolves, you may find that you need additional insurance coverage including:
- Commercial Auto – for coverage not provided under your personal auto policies.
- Non-Owned Auto – to protect your business should an employee cause an accident when operating their personal or rented vehicles.
- Employment Practices Liability – to provide coverage for human resource issues such as those related to termination, harassment, and discrimination laws.
- Directors and Officers Liability – which offers financial protection for directors and officers should they be sued for wrongful acts stemming from performance of their duties.
- Employee Benefits Liability – which covers liability issues arising from an error or omission in the administration of an employee’s benefits.
- Excess Liability aka “Umbrella” – which addresses claims exceeding your standard policy’s limits.
- Workers Compensation – which is required in most states once your business has employees, and provides payment for an employee’s lost wages and medical expenses following a workplace injury.
- Professional Liability – to cover your professional mistakes (“malpractice”) and your attorney fees.
Depending on your business, many of these insurances may be essential to adequately protect yourself. Additionally, so that you are prepared for our discussion, some items we may require at your annual review are as follows:
- Location – Your business owner’s or general liability insurance could be impacted if you have added, closed, or moved locations.
- Property – Have you added equipment, computers, or other assets that would create a need to increase your commercial property policy’s limits?
- Revenue/Sales Receipts amounts – More business is good, but it also means a greater potential for liability. Have annual sales changed?
- Travel – A Hired Auto policy may be needed if your employees are driving rented or leased vehicles.
- Employees – Have you had an increase in your workforce, turnover rate, or use of contractors? Consider Workers Compensation and Employment Practices Liability insurance for high turnover rates.
Contact a Merriam Insurance expert today to learn more.