Once a year every small business owners takes on the daunting task of purchasing insurance for their business. Most start with the bare minimum coverage. In most states it is legally required to have workers’ compensation and general liability coverage in place before you open your doors. This is just the bare minimum coverage a business needs to protect it from the risk the business faces. A few other coverages, like commercial property or auto coverage, are obvious to most business owners. There are several other risks business owners may face that they may not realize. Here are 5 such coverages business owners may not realize they could benefit from.
Inland Marine
Inland marine coverage is a specialized form of property insurance for equipment your business owns that is not a piece of property nor a vehicle. It is frequently referred to as ‘floaters’ coverage. This is because the equipment covered is meant to be in transit. A prime example of a company who needs this coverage is a landscaping company who has trailers and lawnmowers that they transport away from their premises on a regular basis.
Hired and Non-owned Auto
Many small businesses think if they do not own vehicles they do not need any form of auto coverage. That may be right, but in many instances this is not correct. If you have employees who run simple errands like running to the post office or to the bank to make change for the register than your business is liable for injuries that happen as a part of that business activity. Another common time this coverage comes in hand is when you have employees who travel and use a rental car as part of their trip. In most instances the coverage you buy from a rental car coverage will cover the car you are driving, but not other liability risks related to the business. Hired and Non-owned Coverage take help protect your business from those risks.
Cyber/Data Breach Coverage
Cyber insurance consists of two coverages that are almost always sold in tandem. One covers first party damage to you and your business and the other covers third party liability to third parties who may be damaged by your business as the result of a data breach.
EPLI
Employment Practices Liability Insurance is a specialized type of liability coverage for wrongful acts the may arise from the employment process. This coverage includes claims that include wrongful termination, discrimination, sexual harassment, and retaliation. Depending upon the carrier and the particular policy you secure it can extend to cover claims like inappropriate workplace conduct, defamation, invasion of privacy, failure to promote, deprivation of a career opportunity, and negligent evaluation. Lawsuits of this type have been on a steady increase for two decades. If you stay in business long enough it is a matter of when, not if, you face an EPLI Claim.
Owners and Officers Coverage
This type of insurance coverage is specifically designed to cover defense costs and damages arising out of wrongful act lawsuits brought against an organizations board of directors or officers. It is crucially important to have this coverage in place for growing small businesses and especially Non-profits. Officers can provide very beneficial guidance to these types of organizations and one claim, whether founded or not, can result in huge losses for the organization.