Do I really need business insurance?

You need business insurance as much as you need employees, computers and telephones. Many states require businesses to have insurance, but even without it being mandatory, it makes common sense. Why expose yourself to potential catastrophic lawsuit from an injured customer, client or employee? After all, you didn’t go into business to be forced out, did you?

What is liability insurance?

Liability insurance covers you in the case of an accident on your premises that injures a customer, client or employee. It also covers any damage that might be caused by your employees on the property of a client or customer or when an employee has an accident while driving a company vehicle.

What is a deductible? How does changing it affect the cost of premiums?

When you file a claim for your business, the deductible is the amount you pay out of your pocket before the insurance company picks up any costs. If you want to keep your rates lower, set your deductible higher. However, the risk in that is you will wind up paying more if you do have to make a claim.

We do a lot of business online, and I’m concerned about cyber theft. Is there any coverage for that?

Some insurers, recognizing the growing threat to a business posed by hackers and thieves, are starting to provide coverage in that area.

What type of insurance do I need if my business is on a property that I don’t own?

Tenant’s liability covers claims of damages from fire or other causes on property that you rent.

What are some other measures that will help reduce my premium?

Make your business more secure by installing a security system (including cameras), sprinkler system, fire extinguishers and deadbolt locks. Train your employees on risk reduction and workplace safety. Check driving records of any employees who will be using company vehicles.

What is employment practices liability insurance (EPLI)?

EPLI covers businesses against claims by workers that their legal rights as employees have been violated. Most often these suits are filed against large corporations, but smaller companies now have this kind of protection available. Among the potential allegations for claims are sexual harassment, discrimination, and wrongful termination or discipline.

Should I buy life insurance on key employees?

It’s definitely worthwhile. Key employees are those with specialized skills or with a significant client base, and they should definitely be considered important business assets. If they should die, the business needs money to attract and train a replacement; to assure creditors and customers that business will continue; and to continue initiatives jeopardized by the employee’s death.

If I work from home, do I need business insurance?

Business property insurance insures against loss or damage to property used in the business, which is coverage your homeowner’s policy would not provide. For example, if a fire occurs and your home office is destroyed, your computer, fax machine, copier, furniture and printer would not be covered under your homeowner’s policy.