From the day an entrepreneur starts a business, he exposes himself to certain risks. Even before the first employee is hired, a business is at risk, making it important to have the right insurance in place. One lawsuit or catastrophic event could be enough to wipe out a small business before it even has a chance to get off the ground.
Fortunately, businesses have access to a wide range of insurance to protect them against these dangers. Our experienced agents at Southern Colorado Insurance Center work with business owners to determine the right coverage to meet their business needs
1. Professional liability insurance
Also known as errors and omissions (E&O) insurance, covers a business against negligence claims due to harm that results from mistakes or failure to perform. There is no one-size-fits-all policy for professional liability insurance. Each industry has its own set of concerns that should be addressed in a customized policy.
2. Property insurance
Whether a business owns or leases its space, property insurance is a must. This insurance covers equipment, signage, inventory and furniture in the event of a fire, storm or theft. However, mass-destruction events like floods and earthquakes are generally not covered under standard property insurance policies. Our agents work with business owners to determine the best policies to protect their property.
3. Workers’ compensation insurance
Once the first employee has been hired, workers’ compensation insurance should be added to a business’s insurance policy. This covers medical treatment, disability and death benefits in the event an employee is injured or dies as a result of work done. Even if employees are performing seemingly low-risk work, slip-and-fall injuries or medical conditions such as carpal tunnel syndrome could result in a pricey claim.
4. Home-based businesses
Many professionals begin their small businesses in their own homes. Unfortunately, homeowner’s policies don’t cover home-based businesses in the way commercial property insurance does. If you’re operating your business out of your home, Southern Colorado Insurance Center offers additional insurance to cover your equipment and inventory in the event of a problem.
5. Product liability insurance
If your business manufactures products for sale on the general market, product liability insurance is needed. Even a business that takes every measure possible to make sure its products are safe can find itself named in a lawsuit due to damages caused by one of its products. Product liability insurance protects a business in such a case, with coverage tailored specifically to a specific type of product.
6. Vehicle insurance
If company vehicles are used, those vehicles should be fully insured to protect businesses against liability if an accident occurs. At the very least, businesses should insure against third-party injury, but comprehensive insurance will cover that vehicle in an accident, as well. If employees are using their own cars for business, their own personal insurance will cover them in the event of an accident.
7. Business interruption insurance
If a disaster or catastrophic event does occur, a business’s operations will likely be interrupted. During this time, your business will suffer from lost income due to your staff’s inability to work in the office, manufacture products or make sales calls. This type of insurance is especially applicable to companies that require a physical location to do business, such as retail stores. Business interruption insurance compensates a business for its lost income during these events.
By having the right insurance in place, a business can avoid a major financial loss due to a lawsuit or catastrophic event. Southern Colorado Insurance Center agents can help you determine the best insurance options for your type of business and put those plans in place as soon as possible.