ABCs of Insurance - Other Coverage for Small Businesses


ABCs of Insurance - Other Coverage for Small Businesses

Professional Liability

Professional liability is also known as errors & omissions Insurance (E&O). This type of coverage will cover claims alleging negligence in the rendering of, or the failure to render professional services.

 

General Liability

General liability is typically purchased by an individual or business as protection against liability claims for bodily injury (BI) and property damage (PD) arising out of premises, operations, products, and completed operations; and advertising and personal injury (PI) liability.

 

Commercial Auto Liability

If a business owns or leases/rents a vehicle, a commercial auto policy can provide coverage for bodily injury and property damage to others as a result of an auto accident. Some policies may offer add-on options such as 1st party liability and damage to your property.

 

Cyber Liability

Cyber liability provides a broad range of coverage for the loss of electronic information such as customers’ banking information, social security numbers, or other information vital to your business.

 

Directors and Officers Liability

Directors and officers (D&O) liability provides coverage to a company’s key decision makers for alleged wrongful acts, such as fiduciary duty claims, breach of duty, or employment practices.

 

Employment Practices Liability (EPLI)

This type of insurance will cover an employer, its directors and officers, management personnel, and employees for wrongful acts related to the employment process. EPLI claims can include discrimination, sexual harassment, wrongful termination, breach of employment contract, hostile workplace, and defamation or privacy violations.

 

Fidelity/Crime Insurance

Fidelity Insurance is also referred to as “crime” insurance. This coverage protects your company from loss of money, securities, or other property as a result of employee dishonesty, embezzlement, forgery, burglary, robbery, computer fraud, counterfeiting, wire transfer fraud, or various other criminal acts.

 

Fiduciary Liability

Fiduciary liability provides coverage if a claim arises from the breach of fiduciary duties or mismanagement of employee benefits such as retirement/pension plans, savings, profit sharing, or health/welfare plans

 

Hired/Non-Owned Auto Liability

This coverage will protect your business from automobile related claims, but does not cover the driver or physical damages to the vehicle.

 

Property Insurance

Should a business dwelling sustain damage from a covered peril, such as fire, theft, etc., a property policy will indemnify the loss subject to policy terms and conditions of the policy.

 

Surety Bond

A surety bond is issued by a surety (insurance company). The company requiring the bond is referred to as the obligee, and the party obtaining the bond is the principal. A surety bond provides a financial guarantee to the obligee that if the principal fails to complete a project or work as promised, the obligee will be recompensed.

 

Workers Compensation and Employers Liability

Workers compensation and employers liability is typically offered together. Workers compensation insurance will cover an employer for state-mandated compensation to employees for injuries, diseases, or disability sustained due to a workplace accident. Employers liability will provide expenses, such as those related to suits against negligence, not covered by workers compensation.