Every business, be it large or small, should have some form of insurance. Whether you offer a product or a service, a business is at risk for lawsuits. Defending against lawsuits, be them frivolous or valid, is a costly endeavor that takes a lot of time. Having insurance makes it easier for businesses to cover the cost of defending themselves, as well as cover any settlement they may need to pay out.
Captive insurance companies work with their clients to help them determine the right type of insurance they need. This can be one of the major problems that business owners face. Do they need liability insurance, do they need business owner policies, or do they need E & O insurance? It can be difficult for a business owner to know this on their own.
The issues become even more complicated when there are employees involved. Small businesses that have employees should definitely look into worker’s compensation insurance. General liability insurance is good for covering damage to the property or the property of others. It can also provide a business protection against claims that they slandered someone or were engaged in libel.
The property where a small business is located and the equipment they own can be very expensive. This is where a business owner’s policy comes into play. It can help protect the property from damage, and it usually goes hand-in-hand with general liability insurance.
Professional liability insurance, also referred to as errors and omissions insurance, protects a business from a claim that they were negligent in performing their professional services or that they do not provide their clients with the right service. This is a very unique form of insurance because it does not protect the business, but instead it is designed to protect the services provided by the business. It is important to review your professional liability insurance claim. Make sure that the policy completely covers what is needed. Also, make sure that the policy will provide an attorney to protect against lawsuits even if the business is not at fault.
It is important to understand that any business policy can be tailored to meet the specific needs of the business. For example, if a business has subcontractors, their insurance should cover the subcontractors. Imagine if it didn’t have this insurance and then a subcontractor made a mistake. Having the right type of insurance is key to protecting a business financially.