What Type Of Insurance Do I Need To Run My Business?

What type of insurance do I need to run my business? This is one of the most common questions that new businesses ask themselves when they are looking for ways to protect their company. There are many different types of coverages, so it can be difficult to know where to start. Here is a list of some basic coverages every business should consider:

• Property Insurance
• Liability Insurance
• Business Owner's Policy (BOP)
• Directors and Officers Coverage
• Errors and Omissions Coverage
• Cyber Liability

Property Insurance
Property insurance protects your business property. This can include the building you are in, equipment and machinery that is used to run your business, as well as any inventory or supplies you have on hand. If anything was ever destroyed due to fire or other natural disasters, you would be reimbursed for the cost of replacing what was destroyed.
Liability Insurance
Liability insurance protects your business in case someone gets injured on your premises or claims that they were injured due to something used in your business. This can include a customer slipping and falling, being burned by a hot oven, etc. It also includes product liability coverage in case a customer claims that they were injured due to using your product. You would be reimbursed for the cost of medical care and any lost wages, as well as legal fees in some cases when you are sued.
Business Owner's Policy (BOP)
A Business Owner's Policy (BOP) is designed specifically for small businesses with one owner or two co-owners who are actively involved in the business. A BOP is a combination of all types of coverage, including liability and property insurance as well as umbrella and workers compensation coverages which are not included with basic commercial policies. This type of policy is often more economical than buying separate plans for each type of insurance that you need to protect your company.
Directors and Officers Coverage
Directors and Officers are the people who are in charge of your business. If they have any claims made against them due to their position, you could be held personally responsible for the costs if it is determined that you were negligent in appointing these individuals or not providing adequate training or supervision. Directors and Officer Liability coverage protects your company from legal fees and judgments that could result from lawsuits filed against these individuals.
Errors and Omissions Coverage
If your company writes contracts, there is a chance that you will be sued if you cannot complete what was promised under the contract. Legal costs and judgments resulting from claims made by customers or clients can quickly add up to financial disaster for any business that does not have Errors and Omissions coverage in place. Misrepresentation and failure to disclose information are two common causes of errors or omissions in contracts, so you should consider adding this type of coverage for your business if it does not already have such a policy in place.
Cyber Liability
If your company stores customer data electronically (such as credit card numbers), then there is a chance that someone could hack into your server and steal all of that information. If this happens, you could be held responsible for the security measures you took as well as any costs associated with notifying each customer that their personal data has been compromised. This type of policy can reimburse those customers who have had to pay additional fees due to fraudulent charges on their credit cards or bank accounts.

USA Mutual Insurance can help you get started with any of the above insurance policies. To get started, visit our website at www.usamutualins.com or give us a call at 718-285-6500