Small Business Insurance

What Is General Liability Insurance?   Commercial General Liability Insurance protects small-business owners from claims of injury, property damage, and negligence related to their business activities. The indemnity provided by a liability insurance policy helps your business owner cover the costs associated with mounting a legal defense. In addition, many small-business owners find that their clients require them to have General Liability Insurance (sometimes referred to as Commercial General Liability, or CGL, insurance) before they’ll sign a contract. This means that having the right coverage in place can make a significant difference in a business owner’s ability to land clients and bring in revenue. In the course of doing business, you interact with employees, contractors, clients, vendors, and others. Any one of them could claim that your business caused them injury or loss and take legal action against you. Whether you need to defend yourself against claims of property damage, bodily injury, libel, slander, or something else, your General Liability Insurance policy would cover you.   How Commercial General Liability Insurance Protects You and Your Business In simple terms, a Commercial General Liability Insurance policy protects your business by providing the financial resources necessary to keep it operational when unexpected events (such as a client injury that leads to a lawsuit) throw a wrench in your plans. Read on for the specific costs your CGL policy covers. Costs Covered by Commercial General Liability Insurance A general liability insurance policy provides financial protection from the risks that any business owner, no matter how careful, might incur. A typical policy covers the following expenses: The costs of defending or investigating a suit or claim against you, including court costs, witness fees, attorney’s fees, and police report costs Reasonable expenses incurred when the insurance company asks you to assist in your defense (e.g., income lost while spending a day in court) Judgments or settlements resulting from covered suits, including interest required on the judgment and the injured party’s medical expenses, if your defense is unsuccessful The premium on a court-mandated bond connected with a liability suit People Protected by General Liability Insurance A general liability policy insurance policy covers you, of course, but it also covers many of the other people involved in your business: If you have a joint venture or partnership, all of your partners, members, and their spouses are protected if they are sued for something they do in an official capacity related to your business If your business is a corporation, your policy covers all of your business’s executive officers, stockholders and directors while they are acting in their official capacities If you have subsidiaries, your policy’s liability coverage extends to any subsidiary where you own at least 50 percent of the stock Your policy protects your employees from claims that result from actions they take in their capacity as employees If you have a written agreement to indemnify a person or organization, such as a vendor, that person or organization would be protected against liability claims for property damage or bodily injury as a result of selling or distributing your products During the first 90 days after you acquire a new business, it is automatically covered by this policy. After that time frame, you would need to update your policy to continue this protection for the new part of your business People legally associated with your business, including volunteers working under your direction, are covered for liabilities that result from the work they do for you, and for the use or maintenance of your property that is in their care Specific Coverage Offered by General Liability Insurance Bodily Injury It may be difficult to imagine how your business could cause another person serious harm or even death. But it’s good to know that if you are ever held responsible for someone else’s sickness, injury, or disease, your general liability insurance policy would pay for: Medical care costs Loss of services Court-awarded compensation for deaths that result from an injury Property Damage Even if you’re careful and take precautions, it’s still possible that something your business does – or something it doesn’t do – could damage another person’s property. It’s also possible that your actions might prevent the property’s owner from being able to use it. In such cases, your business liability insurance coverage compensates for: Physical damage to the property, or Loss of use of the property It is important to note that property damage liability coverage often does not cover damage caused to client property you are working on or have in your possession. Products-Completed Operations Commercial general liability insurance policies generally include liability protection for services or products completed by your company. So if something your company manufactures or a service your company provides causes an injury, your policy would pay for any resulting legal expenses, as well as damages up to your policy’s limit. Contractual Liability Your commercial liability insurance coverage would cover liability you might take on when you enter into various contracts, such as: Easement-of-license agreements Building leases Elevator maintenance agreements Agreements to indemnify a municipality, if required by ordinance Liquor Liability If you do not manufacture, distribute, sell, serve, or furnish alcoholic beverages as a business, your general liability insurance policy will cover you if are held liable for a liquor-related accident. If you distribute alcoholic beverages occasionally, such as at a company picnic or office holiday party, you’d also be covered – as long as you don’t charge money for the alcohol. Employee Injuries It’s important to know that if an employee should sue you over an injury on the job, your commercial general liability insurance policy would not cover the damages. For this type of coverage, you need a workers’ compensation policy. Fire, Explosion, or Lightning Damage The property insurance portion of your general liability insurance covers damage you may cause to other people’s property as a result of fire, lightning, or explosion, whether you own your business property or rent it. This coverage even applies to other areas in your

Today, more than 23 million businesses are operating as sole proprietorships or partnerships. This accounts for more than 80 percent of all U.S. businesses, according to BizStats.com. Do these structures protect small business owners from certain liabilities, or if a suit was brought against them, could their assets be at risk? There is a common misconception that limited liability companies (LLCs) or incorporated structures are absolute safeguards against personal liability. As a result, many business owners forgo arming themselves with a small business insurance plan. While attention to quality control and seamless risk management procedures can reduce the risk of lawsuits, no organization can eliminate the threat of a claim. The expense associated with defending litigations, even on frivolous claims, can add up quickly and possibly put a company in financial peril. With just one claim, savings that took years to build can be wiped out and the owner’s assets can become vulnerable. Instances where You Could be Liable The owner acted in an irresponsible or illegal manner They injured someone The owner signed a personal guarantee for a loan The business is not operated as a separate entity Businesses can prevent the financial pitfalls of defending a claim by arming themselves with a business liability insurance plan. Typically, with business liability insurance policies, four types of claims are covered: bodily injury; property damage or loss; personal injury, such as libel or slander; and advertising injury. A General Liability policy covers all damages, legal fees, and settlement charges up to the policy limits for covered claims. This is usually packaged with Property coverage in a Business Owner’s Policy (BOP). Typically, liability insurance coverage includes: Legal costs: General liability insurance will cover litigation costs such as attorney and witness fees, as well as settlement payments. Medical costs: Insurance will cover medical costs for individuals who may have been injured on company property. Property damage: Insurance will cover fire, theft, or other incidents that damage the assets of the business. It insures the company from physical damage to the property as well as the customer’s property. Business interruption: Insurance will cover the business in cases of major disasters, such as a fire, that render the business inoperable. If the business is unable to operate, the insurance would reimburse the company for its losses and the profits that would have been made during that time. Business owners should also consider Professional Liability insurance, also known as Errors and Omissions insurance, which protects organizations against claims of professional negligence and errors or omissions in professional work. While the cost of safeguarding a business and its owner with liability insurance can be costly, there are several ways business owners can cut down on the expense, including: Shop around: Business liability insurance coverages range by company; read up on what is covered and what is not. Review small business insurance quotes from several insurers and compare rates. Consider a Business Owner’s Policy (BOP): Rather than purchasing separate types of insurance from various companies, consider purchasing a package of policies. When receiving a small business liability insurance quote on a BOP, be sure to understand what is included in the coverage. BOPs don’t typically include all types of insurance. Enlist a specialist broker: If the small business operates in a niche, it will often require specialized insurance to safeguard against unique risks. Insurance brokers will know what coverages are necessary for the business and know where to go for the best rates. Company liability insurance safeguards businesses from various allegations of negligence, but it also protects them from having to absorb the fees associated with defending a frivolous lawsuit. Protecting the business from these risks provides a foundation for success. Business owners should invest the time to research small business insurance plans and understand what their needs are. It could mean the difference between survival and financial disaster.

Typically, with Commercial Liability insurance coverage, four types of claims are covered: bodily injury; property damage or loss; personal injury, such as libel or slander; and advertising injury. Is a small service company less likely to have a lawsuit brought against it than a manufacturing plant? No, but this is a common misconception among office-based businesses. The fact is, in today’s dynamic and complex business climate, businesses small and large, office-based, or physical-labor intensive, are all equally susceptible to various claims. While commercial liability insurance is fairly inexpensive, costs for defending a claim are not and if the company does not have adequate commercial liability insurance coverage, it may have to foot the bill. This, in turn, could lead to financial hardship or bankruptcy. Commercial Liability insurance coverage will pay for all damages, legal fees, and settlement charges up to the policy limits. Commercial liability insurance for office-based businesses is absolutely essential for financial planners, mortgage brokers, medical offices, architects, and engineers, to name a few. Too often, however, a business owner will forego liability insurance to reduce operating costs. This may save the company some money on paying premiums, but it also exposes the business’s assets to pay for damages, if found liable, as well as legal defense expenses, regardless of whether the business is found liable or not. Small business owners can take several proactive steps toward reducing their insurance costs, including: Shop around: Business liability insurance coverages range by company; read up on what is covered and what is not. Review policy plans from several insurers and compare rates. Consider a Business Owner’s Policy (BOP): Rather than purchasing separate types of insurance from various companies, consider purchasing a package of policies. This will help eliminate costly duplication of benefits and, in some cases, special rates are offered on packaged policies. Enlist a specialist broker: If the small business operates in a niche, it will often require specialized insurance to safeguard against unique risks. Insurance brokers will know what coverages are necessary for the business and know where to go for the best rates. In some cases, operating without insurance is not an option. Federal and state law requires certain businesses to have liability insurance coverage, referred to as Workers’ Compensation insurance. Additionally, some states also require auto insurance. This typically provides coverage for injury, damage, or theft on company-owned vehicles, as well as for employees who may be involved in an accident while driving a personal car on company business. Business owners can also purchase specialized, optional coverage specific to their industry. Several products and services complement Commercial Liability insurance for office-based businesses. These include: Directors and Officers – this protects directors and officers against claims of alleged negligent conduct committed in their role as directors or officers. Errors and Omissions – protects individuals and organizations against claims of professional negligence and errors or omissions in professional work. Umbrella/Excess Liability – this provides additional coverage when insurance limits on an underlying policy are exceeded. Optional coverage offers an extra layer of protection and is designed to meet unique needs. For small business owners who may not want to spend the additional money, Commercial Liability insurance is good coverage to start with. When searching for proper coverage, an agent can help assess what will best fulfill the needs of a small business.

5 Questions to Ask Before Choosing an Insurance Agent.  Any business owner has the responsibility of choosing a business insurance provider and protecting their investment. Otherwise, all the time, money, and effort spent in building it will have been lost. That’s why business insurance exists. More specifically, that’s why business liability insurance exists. Asking the right questions when choosing your liability insurance provider is crucial in protecting your business. What is business liability insurance? Business liability insurance essentially covers business owners from the risk of loss due to lawsuits from clients and other parties. All businesses are at risk of causing some amount of injury, loss, or damage to other parties and their properties. Without the proper liability insurance to protect oneself from such risks, a business can be ruined. Furthermore, choosing the right general liability insurance companies becomes a crucial decision in the formation of a business. Choosing general liability insurance companies General liability insurance companies are one option at a business owner’s disposal when choosing the right insurance provider for a business. All businesses have their unique set of needs when it comes to risk. Professional services, for example, involve the direct provision of services that require a certain kind of business liability insurance. General liability insurance companies may not serve these kinds of businesses adequately. That’s why business owners must ask the right kinds of questions when choosing the insurance that’s right for them and their business. Five questions to ask when choosing a business insurance provider That’s why there are five basic questions any business owner should ask when seeking coverage that includes the right business insurance for them. General liability companies that can provide the right answers would be your best choice, of course. 1) Do they have the right experience? A common impulse among business owners, especially small business owners, is to seek business insurance through their personal insurance provider. This route is easy and understandable. The problem with it is that your personal insurance provider might simply not have the right background in providing the adequate insurance that your business needs. Simply stated, your personal insurance company might leave you exposed to the kinds of risks involved with your business. Most importantly, your personal insurance company might simply not provide you with the business liability insurance that directly addresses the risks of your specific business. It’s why it’s so important that, if you seek general insurance liability companies for your insurance, you do so with one with the background and experience that you need – specifically. Anything else would leave your business exposed to unnecessary risk and loss. 2) Do they provide adequate liability insurance? Once you have moved beyond your personal insurance provider, and are deciding on which business insurance companies are right for you, the top priority for the business owner is to know if the company provides adequate business liability insurance. The reason this is such a serious consideration to the business owner is that some general liability insurance companies may not simply have the kind of experience in providing the kind of coverage that your specific business needs. If that’s the case, then the kind of danger you’re exposing your business to can be considerable. Without the specific insurance package that covers the kinds of products and services you offer, the investment you make in your insurance will simply be a bad one – and one that you may pay dearly for. 3) Will they still adequately insure your assets? As much as it’s important to make sure your business gets adequate business liability insurance, a business owner can’t forget the basics. While general liability insurance companies can and do usually provide the kind of protection from liability you need, your business still has assets that need protection from all kinds of risks, including property damage, stolen goods, and other threats to the things you own as a business. Without this basic kind of insurance coverage, all the business liability insurance in the world isn’t going to be good enough. A comprehensive package that protects the assets of your business, as well as liability risk, is simply a good business decision. 4) Will they grow with you? If you want your business to grow, you should expect that your business insurance provider grow with you. Most business decisions involve the need to take into consideration the long term. When choosing among business insurance companies and picking the right business liability insurance, getting beyond the here and now is an important factor to consider. How much do you expect your business to grow in the first year? How much do you expect your business to grow in five years? What kinds of additional products and services do you think you’ll be offering in the future? Will your business insurance provider help you accomplish your plans and dreams? Will they accommodate your aspirations as well as theirs? Unless you feel comfortable that your insurance provider can stay along for the ride on the path of your choosing, then other liability insurance companies might be your best choice. 5) Can you trust your business insurance provider? There are many factors involved with trust. Those factors become even more complicated when your business is involved. While you may feel that you’re getting the right business liability insurance that meets your needs, it’s probably just as important that you believe the insurance company is in it for you as well as for them. When you’re dealing with any business, you simply have to be satisfied with the kind of customer service they’re providing. Companies that appear to be more interested in their commissions than your insurance coverage are obviously not good for business and should be avoided. Choosing among the right business insurance providers out there is one of the most important decisions you’ll make as a business owner. Ensuring that you receive the proper liability insurance, on top of adequate coverage for all your assets, are primary concerns. Asking the right questions, doing the necessary homework, and being satisfied that you’ve

The history of business insurance and corporate liability insurance, not surprisingly, is intertwined with that of the insurance industry in general. The concept of insurance goes back to when people started to interact with each other in societies. As these societies grew, the property and interests of people and businesses became at risk of loss. It’s why insurance companies started to form, especially in reaction to fires that could consume entire cities. Yet, just as a fire can consume a city, a lawsuit can consume a corporation. Whether it is automobile mishaps or corporate malfeasance, the kind of business owner insurance and corporate liability insurance needed today is just part of the ongoing history of small business insurance in general. When you think of insurance, you probably think of things like procedures, forms, TV commercials, and so on. It’s a structured industry with a set way of doing things that most of us have some familiarity with in one way or another. Yet the concept of insurance is much simpler and goes back to as early as civilization itself. When a house burned down, neighbors would essentially come to your service and help you build a new one. When merchant ships were at the mercy of piracy, other merchant ship owners would get together and devise strategies to minimize risk and help each other out in the case of an accident or disaster. In other words, like much of what we see in modern society, insurance evolves and has its roots founded in simple needs with simple solutions that get complex over time. It’s easy to forget that because insurance, probably more than other industries, has become so structured. Yet its fundamental principles are founded in basic human nature. Things happen and societies need to implement ways to deal with problems when they do happen. In the end, it’s nothing more complex than that. Of course, over time, friends helping friends or business associates helping business associates aren’t enough. As economic systems become more complex, and much more risk is involved with the size and number of business transactions, the need to cover that risk becomes more complex as well. As society evolves, the ways people try to insure themselves from risk also evolve. Perhaps the first more formalized instance of what can be considered insurance occurred when British merchants decided to finance some of the more dangerous voyages overseas. In other words, the business property was underwritten. It’s thus worthy to note that the origins of insurance are rooted in a form of business owner insurance. This probably isn’t surprising. Shrewd business people devise ways of protecting their investments. There’s probably nothing more precious, and perhaps nothing more potentially lucrative, than sailing off to a new world and new profit opportunities. Insuring those opportunities just makes smart business sense. It was underwriters who not only first started perfecting the art of providing insurance to individuals and businesses; it was underwriters who were responsible for selling it. Yet, as in all things in a developing economy, the need for specialization kicks in. Underwriters needed to be good at underwriting, someone else needed to be good at actually selling the policies to individuals. This is where agents first appear. And we’re familiar with them and what they do to this day. Yet the first insurance company wasn’t formed until 1667, a year after the great fire in London. It’s probably not surprising that the capital of the world’s most expansive financial empire is the birthplace of what can be considered the modern insurance company. A city grows. Financial transactions become that much more complex and profitable. All of it goes up into flames after a disaster like the Great Fire. It’s why Nicholas Barbon opened what was known as “The Fire Office” to insure homes. In other words, it was the beginning of what we know today as property insurance. And what business owner insurance policy would be worth its weight on paper unless it contained property insurance, right? Benjamin Franklin is a name we’re all familiar with in American history. What some may not know is that it was Benjamin Franklin who started the first insurance company in the United States in 1752. It was called The Philadelphia Contributionship for the Insurance of Houses from Loss by Fire. Just as with the Fire Office in London, Franklin’s company was formed to deal with the risk of loss due to fire. However, unlike Nicholas Barbon, Franklin refused to insure homes made of wood. So it’s probably not surprising that one of the most respected minds in American history was also one of the first to engage in shrewd risk management when it comes to the setting of insurance claims policy. So, the establishment of the insurance industry is pretty straightforward. Stuff happens. Most notably, fires happen. And individuals of all kinds, including business owners, need to insure themselves from loss if they fall victim to a fire. Pretty straightforward. Concerning business owner insurance, the story is essentially the same except applied somewhat differently and with a bit more specialization. As was mentioned earlier, the very first forms of what could be considered insurance were a type of business owner insurance. Even property insurance is a form of business owner insurance. Most businesses own an array of assets that need to be protected from loss. Therefore, the origins of the insurance industry itself are intertwined with the needs of businesses in general. Of course, as time moves on, and economic systems become more complex and specialized, the kinds of insurance needs associated with doing business become more complex and specialized, too. It’s why, over time, essentially two entities have developed to try and meet the needs of business in general. The first is liability insurance, which essentially protects businesses from the risk of loss due to a lawsuit. The second is the Business Owner’s Policy, or BOP, which is essentially a bundle of insurance coverage meeting the needs of business owners in general. Together, liability insurance and the

A correct small business Insurance application process ?  One of the first things people think of when getting coverage is the long small business insurance application process, right? Well, it doesn’t have to be that way. How you apply for insurance often depends on the kind of insurance provider you’re dealing with and the kind of insurance you’re looking for. So, you’re gearing up to safeguard your small business with the right insurance coverage. But before you embark on this journey, let’s talk about what sets apart a stellar small business insurance application process. After all, navigating the application process doesn’t have to feel like climbing Mount Everest. Let’s dive in and unravel the secrets of a seamless application experience. Understanding the Small Business Insurance Application Process Simplifying the Journey When it comes to applying for insurance, the process can seem like a daunting maze to navigate. However, it doesn’t have to be a Herculean task. The ease of applying for insurance largely depends on the insurance provider and the type of coverage you’re seeking. Embracing Modern Solutions Gone are the days of cumbersome paper forms and endless phone calls. Many insurance companies now offer convenient online applications, allowing you to complete the process from the comfort of your own home. No more juggling schedules or rushing to gather paperwork – simply point, click, and submit. Tailored Solutions for Your Business Needs Personalized Touch One of the hallmarks of a great insurance application process is its ability to cater to your unique business needs. Whether you’re a startup or a well-established enterprise, a tailored insurance solution is essential. Look for providers that offer customizable coverage options to align with your specific requirements. Specialized Expertise Certain types of business insurance, such as Errors and Omissions (E&O) insurance, may seem complex at first glance. However, a great application process demystifies the intricacies and streamlines the experience. Expert guidance and simplified documentation ensure that you can navigate the process with confidence. Factors Affecting the Application Process Navigating Location Dynamics Your business’s location can significantly influence the insurance application process. Factors like regional risks and regulatory nuances can impact your coverage options and premiums. Seek out insurance providers with a deep understanding of the local landscape to ensure comprehensive protection. Assessing Risk Profile Insurers evaluate various factors to assess your business’s risk profile, including the value of your assets and your claims history. By providing accurate and detailed information upfront, you can expedite the application process and secure the right coverage at competitive rates. Tips for a Smooth Application Process Conduct Thorough Research Before embarking on your insurance journey, take the time to research different providers and coverage options. Compare quotes, read customer reviews, and assess the level of support offered to ensure a seamless experience. Prepare Your Documentation Gather all necessary information about your business, including property details, revenue projections, and prior insurance history. Having this documentation readily available will streamline the application process and expedite the issuance of quotes.  This is an important part of the application process, so rushing it isn’t something you should feel is necessary. As with things like E & O insurance, making sure you have the right kind of insurance for you is critically important. One of the last things you want to do is leave yourself exposed to unnecessary risk because you didn’t go through all the details properly with your business insurance representative. While the initial information you submitted to them in the application can be sufficient, ironing out the details can mean the difference between adequate coverage and a disaster. Seek Expert Advice If you encounter any uncertainties during the application process, don’t hesitate to seek guidance from insurance experts. Experienced professionals can provide invaluable insights and help you navigate complex insurance decisions with confidence.  Now that you hopefully have a basic understanding of the issues involved in applying for business insurance, you probably just want to know the basics of how long each step should take. Well, as mentioned earlier, it’s not different than the other types of insurance – property, auto, medical – that you buy for you and your family. Conclusion: Streamlining Your Insurance Journey Applying for small business insurance shouldn’t feel like a daunting ordeal. With the right tools and resources at your disposal, you can breeze through the application process and secure the coverage your business deserves. From online submissions to personalized consultations, the path to comprehensive insurance protection is within reach. So, take the first step towards safeguarding your business today – it’s simpler than you think! Call to Action Ready to embark on your small business insurance journey? Discover the ease and convenience of a streamlined application process with our expert guidance. Contact us today to explore tailored insurance solutions that meet your unique business needs.  Once you get your quotes and feel you’re satisfied with the information you’ve given, the feedback you’ve received from the insurance providers, and even the personal sense you get from dealing with them, it’s time to make the decision. There are different factors to take into consideration when making that decision. However, once you make it, getting the coverage you want can be as simple as picking up the phone and saying yes. Even simpler, it can also mean logging onto the computer and clicking your way to an insurance policy for your business. From start to finish, getting the business insurance that’s right for you is not as complicated a process as one might think. Once you have your information, it’s a matter of submitting information for quotes, talking to a representative to iron out the details, getting a list of quotes, and deciding on the best one for you. It can be done in one business day. Alternatively, it can take a few days depending on the company and how you want to interact with them. Once you make the decision, you’re covered. The insurance provider will arrange for payment, and you will have completed a crucial step in doing

This small businesses insurance NYC guide will help to protect your small business with a customized business insurance policy.  New York business owners should consider several types of insurance to protect against risks associated with daily operations, employees, and business property. Choosing to run a business in New York without insurance could lead to severe financial hardships, such as lawsuits and recovery costs. The New York Small Business Insurance Guide is provided by the Department of Financial Services. Introduction Running a small business presents many challenges. As a small-business owner, you must try to minimize the financial risks your business faces. Some risks you may consider to be acceptable, while others are unacceptable because the loss would seriously harm your business or even force it to close. Many of these unacceptable risks can be transferred to an insurance company. The information in this guide is designed to help small business owners make informed decisions regarding their insurance needs. Why do Small Businesses Need Property and Casualty Insurance? Small businesses need property and casualty insurance: to protect their assets to replace property damaged by loss or theft to provide for lost income to cover liability for negligent acts to provide coverage for auto, workers’ compensation, crime, etc. If you are not adequately insured, you risk losing your business! Businesses large and small must protect themselves from financial loss. An important part of such protection centers on insurance covering property loss exposures, which include the costs to repair or replace the property in the event of a covered loss. The property and casualty insurance business plays a major role in keeping the American economy moving. It provides economic protection for individuals, business owners, and professionals from losses resulting from damage to or loss of property and from legal liability. There are a few types of insurance every business needs. If you’re already a business owner, you have probably bought policies that covered those areas when you first opened Types of Insurance BUSINESS OWNERS POLICIES Many insurance companies have bundled property and liability coverage into what is commonly called a business owner’s policy (BOP), or a package policy. It allows you to obtain broad coverage with affordable premiums. Since no two businesses are the same, property insurance can be tailored to fit your needs. For example, a furniture store has different needs than a restaurant; a two-person accounting office has liability exposures that are different from a retail business with lots of customer interaction or a builder with a contractual obligation to erect a building. MONOLINE POLICIES Monoline policies provide a single line of insurance, e.g., fire, liability, or auto, etc. BOPs and package policies are created by combining two or more monoline coverages. There are occasions where insurance for your type of risk may not be available as a package policy. Thus, it would be necessary to purchase your property and liability coverage as separate policies. It’s prudent for any business to purchase several basic types of insurance. Some are required by law, others simply make good business sense. The types of insurance listed below are among the most commonly used. PROPERTY INSURANCE Property insurance protects the contents of your business against fire, theft, and other perils. There are many different types of property insurance and levels of coverage available. It’s important to determine the property you need to insure for the continuation of your business and the level of insurance you need to replace or rebuild. You must also understand the terms of the insurance, including any limitations or exclusions. Consider increasing your deductible to reduce your premium and spend the savings by increasing your coverage. Learn the difference between replacement cost, actual cash value, agreed amount, and functional replacement cost. CASUALTY INSURANCE Casualty insurance includes the coverage commonly referred to as Liability insurance. Liability coverage should protect your assets in the event you or your employees are negligent and cause bodily injury or property damage to another. Businesses may incur various forms of liability in conducting their normal activities. This is what covers the cost of lawsuits stemming from accidents that cause bodily injury (i.e., a customer slips on your steps) or property damage (you sell a defective lubricant that burns out a customer’s car engine), and other miscellaneous claims such as libel, slander, and false advertising. Liability insurance will not only pay the cost of the damages but also the attorney fees and other costs associated with your defense in a lawsuit, whether or not the lawsuit has merit. However, liability insurance might not protect you against claims arising from non-performance of a contract, wrongful termination of employees, sexual harassment, or race and gender lawsuits. This is another good reason to carefully read your policy. BUSINESS INTERRUPTION While property insurance may pay enough to replace damaged or destroyed equipment or buildings, how will you pay costs such as taxes, utilities and other continuing expenses during the period between when the damage occurs and when the property is replaced? Business interruption (or business income) insurance can provide sufficient funds to pay your fixed expenses and lost business income during a period when your business is not operational. Business income means the net income (net profit or loss before income taxes) that would have been earned or incurred, as well as continuing normal operating expenses incurred, including payroll. Extra expense coverage will reimburse you for covered expenses while temporarily relocated at another premise during your reconstruction due to a covered loss. COMMERCIAL AUTO It may seem obvious that a vehicle owned by your business should be insured for both liability and physical damage. What is less obvious is that you may also need special insurance, called non-owned automobile coverage, if you or your employees use your vehicles on company business. This policy covers the business’s liability for any damage that may result from such usage. Do you realize that if you send an employee out to pick up pizza for the crew and he/she gets in an auto accident, your