What's your Business Insurance?

| January 29, 2020
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If you’re starting your own business, then you’ve most likely spent hours researching all the requirements needed before you even open! While you should be focusing on tasks like hiring employees or what your marketing strategy will be, you’re forced to think about insurance. 

What coverage is required to open? How much is covered by a Professional Liability policy? Do I need Workers Compensation coverage?

While every industry and location may be different, there are common policies that every business should have. Whether you’re confused by all the insurance jargon or want to be prepared before talking with an insurance agent, below you’ll find quick explanations of what may or should be in your business insurance package.

Professional Liability

Also known as: Errors and Omissions, E&O
What it does: Protects against claims and litigations made against businesses that provide professional and personal services.
Covers: 

- Dissatisfied customers
- Work mistakes and oversights
- Professional negligence lawsuits
- Late or incomplete work

- Errors from subcontractors
- Personal injury such as slander

General Liability

Also known as: Commercial General Liability, CGL
What it does: Covers common risks and is the baseline policy you should purchase.
Covers: 

- Customer injuries at your business
-
Damaged customer property
- L
ibel, slander or copyright lawsuits
-
Product liability

Note: Business Owners Policy bundles property insurance and general liability into one plan.

Cyber Liability

What it does: Protects from a broad range of information security related claims originating both externally and internally.
Covers: 

- Loss of digital assets
-
Fraud monitoring costs
-
Business interruption and extra expenses
-
Cyber extortion costs
-
Associated legal fees
-
Non-employee privacy liability 
-
Electronic media liability (like IP or copyright infringement)
-
Cyber terrorism liability

Note: It’s not just big businesses which are targeted by cyber attacks, small businesses are targets too. Click here to learn more about Cyber Liability Insurance.

Employment Practices Liability Insurance

Also known as: EPLI
What it does: Covers common employment-related lawsuits filed against companies. 
Covers:

- Breach of contract or employee agreement
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Discrimination
-
Wrongful termination
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Sexual harassment
-
Workplace harassment 
-
Retaliation
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Defamation

Workers’ Compensation

Also known as: Workman’s Comp, Workers Comp
What it does: Covers expenses associated with injuries or illnesses sustained by employees working for your company.
Covers: 

- Damages to employees caused by employer’s negligence
-
Lawsuits from employees
-
Medical benefits
-
Loss of wages

Note: New Jersey requires all businesses that have employees to have workers compensation insurance.

Commercial Auto Insurance

Also known as: Business Automobile Liability
What it does: Helps cover the costs of repairing and replacing business-owned cars, trucks,
heavy-trucks, and semi-trucks. 
Covers: 

- Accidents involving business-owned vehicles, including collision coverage
-
Bodily injury resulting from an accident
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Theft of the vehicle
-
Towing and rental
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Uninsured and underinsured motorist
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Damage from an accident, vandalism or weather
-
Employee medical expenses (if workers’ compensation insurance limit is reached)

Note: New Jersey requires all business-owned vehicles to be covered by commercial auto insurance. 

There you have it! The most notable insurance policies available to businesses. Keep in mind that there are boundaries built into coverage of an insurance policy, known as limits. You can choose the amount of the insurance coverage limit which determines the premium payment amount. Be sure to check with your insurance agent to discuss the option best suited for you and your business. 

Watch the video above for a list of additional policies you may need!

NorthEast Insurance Services offers insurance programs that are the result of a collaborative effort between us and you, the business owner, to protect against some of the greatest risks in business. Contact us today or request a free quote!

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