INSURANCE INSIGHTS
Commercial property insurance protects your business by covering these essential items as well as assets like inventory . This type of insurance is ideal for small business owners because it provides financial reimbursement to the legal occupant of a building and its contents in the event of damage or theft . For more details on your specific policy , you should contact your insurance broker .
3 . BUSINESS INTERRUPTION INSURANCE
If your operation is interrupted by a natural disaster , property damage , or theft , chances are you ’ ll be missing out on revenue during downtime . Replacing your property can be costly enough as is , and having to make up for lost income on top of that just adds insult to injury .
Business interruption insurance protects your business beyond property insurance , covering incidents that might disrupt your earning ability . This includes things like revenue , rent or lease payments , relocation downtime , employee wages , taxes , and loan payments . Business interruption insurance is ideal for all businesses since it ’ s designed to return your business to the same financial position as if no loss had occurred .
4 . CYBER LIABILITY INSURANCE
The fourth pillar of commercial insurance you should consider is called cyber liability insurance . If you or a third-party partner ( usually one of your clients ) is harmed by online activity , you could lose out on revenue or face a lawsuit if your clients are affected .
Cyber liability insurance can protect you from four main types of risks , depending on the scope of your coverage :
• Privacy Liability : This involves breaches of physical records like improper disposal of documents , a lost laptop , or a customer ’ s account information sent to the wrong email address .
• Network Security Liability : A network security failure can expose important information to unintended recipients . Network security provisions can cover you in the case that a client ’ s trade secrets or patent applications are exposed due to a failure of your security .
• Media Liability : Media liability is the infringement of intellectual property , copyright / trademark infringement , and libel or slander . This is important for service businesses in case you misrepresent a client ’ s information .
• Errors and Omissions Liability : Errors and omissions liability involves the performance of your services . This includes tech services like software and web development to more traditional services like consulting . If you make an error that costs a client money , you could face a lawsuit .
Your policy may cover you for all , or only a few , of the risks listed above . To confirm your coverage , you should contact your current insurance provider .
These four insurance policies are an essential part of any stable and successful business . They protect you from the unexpected and provide peace of mind to all parties involved .
EXTRA COVERAGES TO CONSIDER
In addition to the four pillars , there are other types of coverage to consider .
Umbrella Liability
Commercial umbrella liability insurance provides your business with additional liability coverage over and above your commercial general liability insurance policy , whether it ’ s with us or with another insurer .
It ’ s there so you don ’ t have to worry about having to pay for a liability claim out of pocket when it exceeds the coverage limits of your primary policy .
Directors and Officers
There ’ s a lot resting on the shoulders of directors and officers of companies and nonprofit organizations : wrongful dismissal , bankruptcy , defamation . These are just a few of the liability situations you might be faced with as a director or officer .
Directors and officers liability insurance — also known as management liability insurance — covers damages involving wrongful acts committed in the discharge of your duties including negligence , misconduct , errors and omissions , breach of duty , misleading statements , or any other act that could be held against you in your capacity as a director or officer . In the event of a lawsuit , this protection would cover legal fees to defend yourself .
Crime
Crime insurance protects your business against a wide variety of threats that can cause unplanned expenses and lost time including Employee Dishonesty ; Theft , Robbery , or Burglary ; Fraud ; and Expenses resulting from a Crime loss .
Add Social Engineering Fraud coverage to your policy to protect your business against the loss of money , securities , or other property as a direct result of social engineering fraud conducted by a person purporting to be a vendor , client , or employee .
While we like to make insurance as easy as possible for our clients , as you can see , ensuring that you are covered properly means asking a lot of questions and really understanding your business operations .
We encourage you to take the time to call your broker to discuss your current business needs . If you don ’ t have a broker , we are always open to reviewing your policy and making recommendations . Just give us a call at 1-800-265-3000 or contact us by email at info @ millerinsurance . ca . +
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