Preparing for the New Year: Is Your Business Protected By Small Business Insurance?

Year’s end always presents an opportunity for reflecting and planning, and with 2014 fast approaching many small business owners are doing just that.  What worked well for you in 2013?  What will you strive to do better next year?  Where do you want to be at the end of 2014 in terms of growth, revenue, and profit?

 

 

While you’re working through these important considerations, don’t forget to review your small business insurance needs.  Maybe you still need to get around to setting up your business’s insurance coverage or maybe you haven’t reviewed your insurance policies in a while.  Either way, don’t start 2014 with preventable risk hanging over your head; stride into January confident in your small business insurance coverage.

So how does one know their business has insurance that’s appropriate and adequate?  The details of what types of and how much insurance are appropriate for your business are best determined by a reputable insurance provider that specializes in small businesses.  But it’s safe to say that most entrepreneurial ventures are well-served by having professional liability insurance and general liability coverage.

General liability (GL) is important for all small businesses. If there’s an accident involving a client, this coverage offers protection.  Also known as commercial general liability or CGL, general liability typically provides basic coverage for claims relating to bodily injury, property damage, and personal injury.  If you visit clients’ offices, have access to client equipment, write or speak about clients’ businesses, or use third-party locations for business-related activities, then you need to consider general liability policy.

Professional liability insurance (PL), which is also known as errors and omissions insurance or E&O, is important for businesses like consultants who provide IT/technology, business, or marketing services.  If your business offers services that include consulting or any type of professional service at all, you should seriously consider professional liability insurance.  E&O coverage generally protects you if a client isn’t satisfied with your work and decides to pursue legal action against your business, subject to your deductible, whether you’ve actually made a mistake or the claims are fraudulent.

Additionally, both professional and general liability insurances cover defense costs – again, even if the claims against you are baseless.  If someone sues you for having caused injury or property damage or for providing erroneous advice you have to defend yourself.  If you have PL and GL you’re protected for covered claims up to the limits and terms of your policy.

There’s also coverage called business owners insurance that’s worth investigating.  This type of policy combines general liability coverage with protection for your business equipment and is available to businesses with offices and home-based operations alike.

Overlooking your insurance needs puts your business at risk of expensive legal costs – and that’s no way to start a new year.  Contact a small business insurance provider today and find out which types of insurance you need. Also check out this quick 90 second guide: What is Small Business Insurance? Have questions about small business insurance or want to share your experiences, use the comments below and let us know.

 

Guest Blogger:

Kevin Kerridge is the director of small business insurance for Hiscox, a company that provides customized business insurance for small business professionals such consultants, IT professionals, graphic designers, bookkeepers and many more.

 

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  1. Pingback: What Is Small Business Insurance? A 90 Second Guide | Empower Me! Magazine | Empower Me! Magazine

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