Updated: Jul 5
This is information to help you successfully operate your business or non-profit
There are risks in operating any type of organization. Managing these risks can be a major component in successfully managing and growing your organization. As you are aware, your business (or non-profit) is constantly changing. These changes can be in your organizational structure, size, number of employees, provision of services, locations, geographic reach, etc.
When your insurance coverage does not adjust to those changes, gaps in coverage can result. Unfortunately, these gaps can be catastrophic to your business. Therefore, it is important for your agent to collaborate with you and conduct an annual review of those changes. From this, they will make recommendations, such as revising your coverage to provide adequate protection for your organization.
Business Insurance Tips
At IMS Business we are not insurance agents or experts, but we understand the importance of managing the risks in our businesses or non-profits.
Typical Insurance Coverage for your organization can include:
Workers Compensation Workers compensation insurance pays for medical care, on-going physical therapy, disability benefits, lost wages and other benefits should an employee get hurt or sick in a work-related incident.
Business Owners Policy or BOP - What does business owners policy BOP cover?
If you own a small business, a Business Owner's Policy, or BOP, protects you from liability claims and lawsuits; safeguards your buildings, equipment and inventory; and covers you financially if your business unexpectedly shuts down from a covered loss.
The BOP is a package policy providing most of the property (both direct and indirect), crime, and liability coverages that small and medium-sized businesses require. The BOP does not cover businesses related to autos, bars, and banks. Fire, burglary, liability and business interruption losses are all covered under a BOP. Since a BOP is prepackaged, there is only one policy to review and it can be more cost effective than purchasing separate policies. Additional coverage can be added in the form of endorsements or riders.
General Liability – many times part of the Businessowners policy. Be certain to include coverage for non-owned autos if employees travel and rent autos. A good example of this coverage is protection if someone slips and falls on your premises.
What Is Professional Liability Insurance? Professional liability insurance helps cover you and your company if you make a mistake in the professional services given to a customer or client. This coverage is also known as errors and omissions insurance (E&O). Even if you're an expert in your business, mistakes happen
What is umbrella insurance? Umbrella insurance is extra insurance that provides protection beyond existing limits and coverage of other policies. Umbrella insurance can provide liability coverage for injuries, property damage, certain lawsuits, and personal liability situations.
What is covered under a commercial crime policy? Commercial crime insurance provides protection from financial losses related to business-related crime, including theft by employees, forgery, robbery, and electronic crime. Sometimes included in the BOP
Employer Practices Liability
Employer's liability insurance is a coverage that helps pay a business owner's costs related to a lawsuit resulting from an employee's work-related injury or illness. Without employer's liability insurance, you'd have to pay for these legal costs out of pocket, which can get very expensive.
Director and Officers Coverage
Directors and officers (D&O) liability insurance protects the personal assets of corporate directors and officers, and their spouses, in the event they are personally sued by employees, vendors, competitors, investors, customers, or other parties, for actual or alleged wrongful acts in managing a company.
Why is cyber insurance important? The loss, compromise or theft of electronic data can have a negative impact on a business, including the loss of customers and revenue. Businesses may be liable for damages stemming from the theft of third-party data. Cyber liability coverage is important to protect businesses against the risk of cyber events, including those associated with terrorism. Cyber-risk coverage can assist in the timely remediation of cyber attacks and incidents.
Errors and Omissions – like Professional Liability Insurance.
Auto Insurance – people that use their personal autos while on work related tasks. If there is an accident, their personal auto insurance is primary. Therefore, we recommend that they purchase 100/300 Liability Coverage.
Homeowners Insurance tip – always add
Replacement costs on contents
Water/sewage back up
Do not be embarrassed if you do not understand these coverages. It is the job of your agent to explain these insurance coverages and benefits so that you understand.
The Importance of Securing a Good Insurance Agent
Keep shopping until you find an agent you trust and is an expert in this field. Unfortunately, there are too many agents with limited knowledge. Fortunately, there are also GREAT agents that provide superior service.
How to Find the Best Agent
To find a good agent, ask your peers for recommendations. When searching, ask for at least three different quotes and presentations of proposed insurance coverage. Ask for references.
While insurance may not be your favorite way to invest your money, risk management is a key component in successfully growing your business or organization. Today, commit to requiring an Annual Review of your insurance and employee benefits. It is a critical part of successfully managing your business.
Again, we are not professional insurance agents. This information is provided to give you a basic understanding of business insurance. Please rely on your insurance agent for their professional advice.