If you own a business, whether it is a home-based “Virtual Business” or Brick and Mortar enterprise; whether you sell a Service or a Product, there is one common thread. To protect you, your clients and your investment – you Need Insurance!!
OK – but what business insurance do I need??
That is truly dependent on both your business and your “Exposure”. The best thing to do is talk with someone who can provide advice and options but for this purpose, let’s just go over the basics.
Professional Liability and/or E&O Business Insurance Coverage
Let’s focus on the various options – starting with Professional Liability and/or E&O coverage. This is a policy designed to protect you as the provider of the “service” from claims against you in the case where you may make an error, etc. You often see this coverage with Attorneys, Insurance Professionals, Financial Advisors, Accountants, Tax Preparers, even Tutors. This is critical coverage for those in these industries but it is limited in scope.
General Liability Business Insurance Policy (GL)
Next would be a General Liability policy (GL). As the name indicates, it is a policy whose primary purpose is to protect the business from Liability claims and while it may offer some ancillary protection – protecting you from a Bodily Injury Liability claim is its main focus.
Business Owners Business Insurance Policy (BOP)
Now on to a Business Owners Policy (BOP). This is a much more comprehensive policy that includes not only Liability protection but can include Much More like: coverage for Business Property, the Structure that you lease, Completed Operations, Tools, and more – depending on the industry. For most businesses – especially Brick and Mortar – this is the policy of choice.
Workers Compensation Business Insurance
This is a policy type that is Mandatory in NV if you have staff. This provides protection to your staff (and officers if desired) when it comes to illnesses and accidents directly related to work activities. This is the only legal recourse an injured employee has against their employer. And speaking of employee and employer – this can also be required if you own a business that allows contractor workers to use your business where you are deemed to “treat” them as employees. For example, you own a hair salon and have a receptionist that schedules or manages a contractors appointments, welcomes their clients on behalf of the contractor And/OR you require and/or manage the contractor’s schedule.
Commercial Vehicle Business Insurance
If you have a business where you use vehicles in the performance of your service, your vehicles should most likely be insured as commercial vehicles. There are a number of reasons for this (and benefits) whether you personally use – or have staff use – Cars, Pick-ups, Vans, Box Trucks even 18 Wheelers! And very often these policies can include telematic options that allow the business owner to not only monitor the driving habits of their employees (which could have a direct impact on insurance costs) but also could allow them to track the location of those vehicles which can assist with scheduling, etc.
Sorting Out Your Business Insurance Options
There are a number of things to consider from an insurance perspective if you own a business and the best way to make certain that you have the “right” set of coverage’s for you and your business is to work with an Experienced and Local Professional Advisor who can help you to make the most appropriate (and Best) choices.