Frequently Asked Insurance Questions - Business Insurance

1.Should my small business have business income insurance?

Business income coverage is not necessary for every business. However, if you decide to not purchase this coverage, it’s important to understand what you will not have coverage for in the case of a loss.

Business income provides reimbursement for lost revenue after a covered insurance loss. For a company that does not have a physical address that is crucial to its business, such as a contractor, business income is probably not necessary. For store front or main street businesses, like a coffee shop, business income is a must.

2. Does my business need employment practices liability?

It!

If your business has employees then you are exposed for a loss related to employee practices. This isn’t just sexual harassment, it also includes unfair hiring or firing practices and unsafe work environment as well as discrimination.

But what is really scary to me is a loss from a 3rd Party that enters your business and may have nothing to do with it like the mail delivery person. You can be sued for the things that this person does to your employees and there is no coverage for that under you general liability insurance.

3.What are the exclusions on a general liability policy?

Just because the name General Liability sounds all-inclusive you must understand that it is NOT!

There are many exclusions on a General Liability policy just on the standard forms and then each individual insurance carrier can apply additional exclusions as they see fit.

4. What is hired and non owned auto liability insurance?

Hired and non-owned auto liability insurance is a coverage found most often on business auto policy or the business owners policies (BOP).

The coverage provides protection for the business in the event an employee gets into an at-fault auto accident while driving their own personal vehicle or any other vehicle not owned or a rented vehicle during the course of their work duty.

Example: You send John Smith from accounting for envelops at the stationary store and he blows through a red light and causes bodily injury. If the business is sued hired and non-owned auto insurance responds.

5.What is the difference between general liability and professional liability?

At a 10,000 foot view general liability is slips, trips and falls meaning bodily injury and/or property damage to a 3rd party.

A woman walks into your store and slips on a puddle, breaks her hip and sues your business for the medical damage. That’s General Liability.

Professional liability is protecting your business against bad advice or guidance. Any time you give professional opinion, advice or guidance you are opening yourself up to a professional liability claim. Scary right?