What type of insurance is best for a business to protect against various types of liability claims?
As a business owner, you might be curious about which types of insurance would best suit your needs. Once you’ve secured your business structure and hired a legal entity, you have many options for extra protection in the form of commercial liability insurance policies. For example, General Liability Insurance will protect your assets against accident claims, such as a slip and fall on your property. Commercial Umbrella Insurance will help cover the more significant liability costs above and beyond your other policy coverage, helping you bridge the gap between your general liability coverage and the total cost of the claim. Professional Liability Insurance (also known as Errors and Omissions Insurance) will protect your business from the consequences of professional errors, such as incorrect accounting or an accidental oversight. Worker’s Compensation Insurance will protect your business from liability in case of an employee injury. Lastly, Employment Practice Liability Insurance will protect your business from employee-related disputes, such as discrimination cases or contested terminations. There are other types of insurance available, as well, so it’s in your best interest to consult a professional before choosing your policies.
What are the consequences of a lack of insurance and how can you properly protect your business?
When you own a business, the ramifications of potential litigation can be astronomical. Depending on where your business is located, you might find that judgments against your company without the proper insurance protection in place can force you to close your doors due to bankruptcy. While this is a worst-case scenario, it’s not uncommon. Having the needed coverage to mitigate these risks is a must, but navigating the world of insurance can be difficult.
You must assess your operations and unearth potential liabilities, especially if you have acquired a company previously owned by someone else. Not all risks come from your own practices, and you could potentially be held responsible for defective products made before your acquisition, a legal position known as successor liability risk.
It’s also crucial for you to reassess your insurance coverage frequently, especially if any changes have occurred, such as acquiring new clientele or staff. You don’t want to be caught unaware by new risk factors, and you don’t want to miss out on any potential premium reductions or bolstered coverage options that become available over time.
At BWM Financial, we do not offer insurance policies to our clients, but we are happy to provide unbiased advice on potential risks within your company so that you can assess policies with clear and concise information. We are also well acquainted with insurance experts that can offer more comprehensive information and help you locate gaps in your current coverage.
To learn more, click here.
Investment advice offered through Stratos Wealth Partners, Ltd., a Registered Investment Advisor DBA Brown Wealth Management. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Stratos Wealth Partners and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.