Small business owner? Must have insurance policies for business owners

As an independent agent based in Manassas, VA I meet small business owner's everyday who need advice and guidance on how to cover their exposures against a sizable loss that would otherwise put them out of business. Here are some of the most important coverage's to consider: 

1. General liability: This protects the corporation, LLC or sole proprietor for suits brought that allege bodily injury or property damage as a result of their operations. Even suits completely without merit will cost to defend. This coverage is critical for all businesses regardless of size and is often a requirement in contracts that our insured's sign. 

2. Worker's Compensation: This coverage provides benefits for employees who are injured while performing their duties. Benefits include medical bills and supplies, travel reimbursement for trips to/from the doctor and lost wages. In the event of a death there is payment for funeral expense as well. Virginia law states that a business with three or more employees MUST have Worker's Compensation in force. It is highly recommended for smaller businesses. 

3. Commercial Auto: The personal auto policy contains an exclusion for business use. Even if a vehicle is not titled in the business name, a small business is taking a risk of a claim not being covered without a commercial policy in place. 

4. Professional Liability: An often overlooked coverage but key coverage. Any insured who is providing a service or professional advice has an exposure to their errors and omissions. If your client relies upon your flawed advice and then suffers financial harm, they will seek to recover the damages from you. Only a professional liability policy will cover such occurrences. 

5. Cyber Liability: This is a relatively new coverage. The above mentioned General Liability policy contains an exclusion to damage to electronic data. Recent legislation from several states have resulted in steep penalties for businesses that suffer a data breach. A cyber liability policy can provide first party (notification expenses) and third party (protection from suits from aggrieved parties) for our insured's whose customer data is breached. 

6. Employment Practices Liability: Employees can and often do sue their employers for alleged acts of harassment, discrimination and other acts that lead to a hostile work environment. Oftentimes these suits are without merit but can be costly to adjudicate. This policy can provide money to defend the suit and if necessary pay judgments rendered. 

7. Commercial Property: Your equipment, tools, furniture, buildings and machinery are all susceptible to perils such as fire, wind, theft, vandalism, collapse, flood and earthquake. It is essential to properly insure these items against potentially costly losses.

There are several other types of policies as well. Be sure to speak with a commercial insurance agent who can properly ensure your hard earned assets are protected. 

Harold Tracy has been a commercial insurance agent since 2004. He can be reached at 703-507-5287 or harold@brocknorton.com