Is it Time to Update Your Business Insurance Policy?

Business insurance is all about shielding yourself and your business from potential liabilities deemed your responsibility and the sharing of that risk, in exchange for a specific amount of premium dollars, with your insurance carrier. Your portion of this risk-sharing is a deductible amount, if required, should a claim against the policy be filed. If the dollar loss of a particular claim exceeds your policy limits, you’ll also be responsible for any amounts in excess of those limits.

Where to Start

From the day your business opens its doors, you become exposed to risks. One lawsuit or catastrophic event can basically wipe you out in the blink of an eye. A large liability judgment against you could actually spell financial disaster, which is exactly why good business insurance is a must. Fortunately, there is business insurance coverage for just about every conceivable risk you face. Each business insurance policy will basically be a custom-designed contract drawn up to fit your specific insurance needs. You should consult with your local broker here in the Triad area to determine what you need.

The Big Three

The top three types of business coverage most commonly sold here in North Carolina are all coverages against potential liabilities. They include:

• General Liability – protects against losses suffered as a result of accidents, injuries or negligence claims. Payments may be made toward losses from bodily injury, medical expenses, property damage, slander, libel or to help cover the costs of defending yourself in a lawsuit.
• Professional Liability – also known as E&O (errors and omissions) insurance, this coverage protects against negligence claims arising from failure to perform or from mistakes made, including malpractice, while in the service of clients.
• Product Liability – protects against losses suffered as a result of a defective product that your company manufactured, wholesaled, retailed or otherwise distributed.

Your other major business insurance need is for property insurance. This coverage is similar to your homeowner’s insurance. It covers everything related to the damage or loss of company property. This typically includes perils, such as fire/smoke damage, storm damage and vandalism, and may include a broad range of other coverage, such as loss of income, business interruption and more. While you may have all or most of this coverage already in place, it's a good idea to revisit policy limits, premium and deductible amounts regularly. How long has it been since yours was assessed?