Business insurance can be incredibly complex. Every company’s insurance needs will differ based on factors like industry, location, and size. However, regardless of these factors, there are a number of core coverages that every business should have. If you own a business, then this article is for you.
We’ve compiled a list of five coverages that businesses in today’s day and age should never go without. Some of these coverages, such as EPLI and property insurance, are becoming industry best practices as the number of claims and cases seem to grow each year. These coverages will help you secure your success and protect your business in today’s tumultuous times.
General Liability Insurance – In our litigious society, general liability insurance is a necessary coverage, regardless of business size or type. This policy will protect your business from lawsuits, claims, and settlements. From injuries to discrimination, your business can be sued for anything. This is one type of business insurance you simply cannot skip.
Commercial Property Insurance – Just like you wouldn’t leave your home or car without coverage, you shouldn’t leave your business’ physical assets unprotected. Equipment – from mobile phones and laptops to robots — can be extremely expensive to replace. Property insurance will protect your business from theft, damage, or destruction of your business property. Having to replace stolen, damaged, or destroyed physical property or inventory can be financially devastating for a business of any size. It is important to note, however, that a standard policy won’t cover floods. If your business is in a high-risk area for floods, this could be another coverage to consider adding.
Workers’ Compensation Insurance – Although specific laws vary by state, workers’ compensation insurance is typically required for any companies that have W-2 employees. If your business has any employees, you will want to invest in this coverage. Regardless of state law, it is a best practice to have workers’ compensation to protect both you and your employees if an injury or accident occurs on the job.
Employment Practices Liability Insurance (EPLI) – Just as with workers’ compensation, this coverage type is necessary for any business that has employees. With a new harassment case hitting the headlines every day, it has become a best practice to invest in EPLI. From the moment you start the hiring process, you open yourself up to discrimination and harassment allegations. EPLI will provide your business with insurance coverage against claims made by employees and prospective employees. These could include claims of wrongful termination, harassment, and other employment-related issues.
Keyman Insurance – While this coverage is technically considered life insurance, think of it as taking out a life insurance policy for your business. Often times businesses have one or two key employees who are vital to the company’s success. This could be the founder or even the top salesman. If a business loses a key person due to an unexpected death, it can create a shockwave of effects, including operational confusion and financial issues. Keyman insurance would provide a payout that could help keep the company afloat until a new direction is determined.
As your business grows and evolves over time, your insurance needs will inevitably change. However, these five core coverages will always serve you well and should never be left behind. If you have any questions about obtaining a customized insurance plan for your business, reach out to any of our agents for assistance.