New Year’s Resolutions. Most of us have a love-hate relationship with these yearly goals. It is fun to dream, plan, and let yourself get caught up in a whirlwind of inspiration and aspiration. However, it doesn’t take long to grow discouraged once the process actually starts. As a business owner, the beginning of a new year is an important time examine your business in every aspect. You should be looking at where you have been, where you currently are, and where you want to be. It’s also wise to do a periodic evaluation of the company’s insurance coverage. Where do you stand, and do you have sufficient coverage? It might be time for updating your business insurance.
Basic Insurances for Businesses
You most likely already have a Business Owners Policy (BOP). Your BOP will cover general property insurance, liability protection, and business interruption insurance. There are some basic insurances you should probably have:
- Professional liability insurance
- Fire insurance
- Flood, tornado, and other natural disaster
- Commercial vehicle insurance
- Workers’ compensation
Workers’ compensation covers the expenses of caring for employees should something happen to them while working. It is required for all businesses except some states which allow single man operations to do without.
Updating Your Business Insurance: Secondary Insurances
While your company should pass the test on the basic insurances. Here are some insurances you should consider for your business:
- Coverage for robbery: usually expensive, but vital if you handle a significant amount of cash
- Fidelity bonding: if employees handle company funds, you could be exposed by their actions
- Key-person insurance: This is especially important for corporations or partnerships
These are only a few of the many insurances which could apply to your business.
Insurance Considerations For Home Businesses
If you run a business out of your home consider these points:
- Homeowner’s insurance: normally doesn’t cover work-related accidents
- Auto insurance: separate insurance is needed for a privately owned auto used for business
- Adding to current insurances: you may be able to add to your personal insurance policy to help cover your business, but on a very limited basis
- Special in-home business policies: these include most essential features, but usually allow for only 2 or 3 employees
If you own a home business, it is highly recommended to reevaluate your insurance.
For Large Companies
If you own a large company, you face much different challenges than a small company when updating your business insurance. Transitioning from a small or mid-sized business into a large business cause a lot of change and opens up new coverage needs. If your company has grown to the point it has a board of directors, you may want to consider Director’s & Officer’s insurance. This insurance protects the company’s leaders from liability to lawsuits regarding the decisions they make.
As we approach the New Year, add an insurance check up to your list of resolutions. The world is rapidly changing and your business and industry are almost necessarily changing by default. If you would like help reviewing your policy, contact us at TJ Woods Insurance Agency, in Worcester, MA. We can provide you a full review that calculates the liability you are exposed to as your business grows and expands. We will provide a free quote if it is determined your policies should be updated.
