Small business insurance is not something that every business owner needs. Many businesses, in fact, do not need this type of coverage. But there are many businesses that do. And many of them are in high risk industries. If you own or manage a business that falls into any of these high risk industries, you need to be aware of small business insurance.
General Liability insurance helps protect a small business owner, if it’s sued by a third person for damages or injuries. Errors and omissions coverage or professional liability coverage helps protect a small business owner’s policy from professional negligence claims. These claims can sometimes cost the business owner money. And these claims are sometimes the result of employees of the business making an error on their work applications or submitting data that has included incorrect information. Errors and omissions coverage also protect small business owners from lawsuits resulting from inaccurate or incomplete data entry or record keeping. These types of lawsuits often arise from errors made when an employee performs a task required for completing work-related tasks.
Errors and omissions insurance to cover a wide variety of things but claims made under these policies are always expensive. Claims involving financial losses like property damage or loss of profits, or injury claims, and product claims are some of the most common claims made under small business insurance. If an employee makes an error in entering data and submits the information wrong for a product being sold, the company could be held liable for financial losses. Sometimes the errors will involve the company not manufacturing a defective product, as is sometimes the case with automotive parts.
Another popular form of small business insurance is employment practices liability insurance. This coverage protects against claims for injuries that happen on the premises of the business, for damages that happen to employees, and also for negligence in employment practices. It is very important to keep good records and to ensure that you provide the correct information when filing a claim. Also important is documenting all of your employees’ contact information to protect you in the event of legal action.
Many of the same rules apply to claims of property damage or bodily injury as to claims of medical injury. Many times property damage and bodily injury insurance will also cover loss of profits. For example, all employee equipment and supplies must be clearly identified on the coverage policy so that your company will be fully protected against damage that is associated with negligence of any kind. Every business owner should also know about the different types of coverage that are available to them so that they will be familiar with what is required of them by law. Visit here for more information about Small Business Insurance Quotes.
Some other small business insurance include professional indemnity insurance which provides coverage for the companies professional employees in the event that they are injured while at work. Professional indemnity insurance is very important for companies that provide professional services to customers as this type of insurance will protect them if a customer is injured while using the services of your company. The cost of professional indemnity insurance can vary greatly depending on the service that you are providing to your clients. In the event that your company is sued because a customer was injured while using your services, professional indemnity insurance will protect your business and your assets from a judgment in court.