Disaster Planning – Are you Insured? What are Your Options?

While we all take precautions to prevent crime and mishaps in the workplace, they do happen. You also may get sued one day and need to be protected. That is why we get insurance. There are some options to consider for insurance for a business depending on your level of business risk that cover property, liability and employees.

Using an insurance broker is get a good way to get a neutral opinion as they can negotiate an affordable, tailored insurance package suited to you and your company says Paul Hainer, President of Insuranceland. The broker can get a few quotes, discuss exclusions, deductibles and liability limits to be sure you strike the right balance between affordability and risk protection. Paul also says, It’s important to regularly revisit your insurance coverage, especially if your business situation changes significantly.

INSURANCE COVERAGE OPTIONS

A) Property
Property insurance covers loss of business assets such as buildings, inventory, materials, equipment and furniture. To save on insurance costs security systems offer a way to lower the costs. Make sure you add asset tags to inventory your assets as it will help when filing a claim. Banks often require a business to have this type of coverage when getting a business loan.

B) Corporate Liability
Comprehensive general liability insurance covers injuries and property damage that occur due to a company’s negligence on its premises or involving an employee. It also covers damage that a customer experiences due to your defective product or work.

C) Business interruption
if a fire, flood or other calamity forces your company to temporarily stop operations, business interruption insurance covers your lost income. You may also want to look at disability insurance for family businesses.

D) Crime and Fraud
If you are a victim of fraud you may want to get coverage of this as cyber thieves are getting more clever each day. With the growth of online banking make sure you are covered in case of this calamity.

E) Professional Liability
Some professionals are advised to consider professional liability insurance (also known as errors and omissions insurance), which covers them for work mistakes.

F) Vehicle insurance
Company fleet vehicles require separate auto insurance. Be careful of the diminished value adjustment used by insurance companies if the vehicle was in a previous accident and is written off. Check what the company’s policy on this as it will save you lots of headaches.

G) Life, Health and Disability insurance
Life and disability insurance policies are important for entrepreneurs/senior staff so their family and business isn’t at risk of financial hardship if you can’t work for health reasons or pass away. Companies may also want to look at group plans for staff as an employee benefit.

At the end of the day employers need to create a secure and safe work environment to protect the company from crime and accidents. If you have a business risk that you specifically want to ensure that is not addressed here, you know they can create a policy for it as there are even insurance policies for USA markets sales as we ride out the “Trump effect” of the economy.

Who are the good insurance companies? We can start by learning about the ones that are on the radar of the American Association for Justice, a consumer advocacy site, they have published an interesting PDF, Tricks of the Trade that is a must read before you buy insurance.