Taking
Proper Precautions
Million-dollar
lawsuits are not uncommon today. In fact, nearly one in every six jury awards
totals $1 million or more.¹
As a business owner, you may already recognize the need to protect your
operation and assets. But have you reviewed your insurance lately to ensure that
your coverage has grown with your business?
As your business grows and changes, so do the type and amount of insurance
coverage you may need to protect it. Here is a look at some of the types of
policies available and the risks they help guard against.
Business Owner Policies (BOPs) –
BOPs typically combine property, liability, and business interruption coverage.
Property coverage insures buildings and their contents. Liability coverage
provides protection from a potential lawsuit. And business interruption coverage
includes protection against losses that result from a disaster (such as a fire)
that disrupts the operation of the business.
BOPs do not cover professional liability (i.e., malpractice insurance),
automobile, workers compensation, health, or disability insurance. This coverage
needs to be purchased separately.
Errors and Omissions –This
type of insurance helps cover any financial damage that results from negligence.
It is similar to malpractice policies for professionals.
Key
Person – This coverage helps protect against losses a business
may incur in the event that a top employee should die or become disabled. It can
help replace lost revenues or help cover the cost of finding a replacement.
Employee
Practices Liability – This type of policy can help provide
financial protection for many types of employee lawsuits, such as wrongful
termination and sexual harassment suits.
Scheduling
regular reviews of your insurance coverage is a smart business decision. Call
today to discuss how to help ensure that your coverage keeps pace with your
business.
1)
Insurance Information Institute, 2005
