Starting Your Own Business

As a small business owner, we’ve enjoyed working with other successful professionals who decided to take that leap of faith to exercise their unrelenting entrepreneurial spirit. If you are an entrepreneur at heart, you took all of your education, experience and expertise and decided to hang out the proverbial shingle.

What may be a surprise is that you thought you were your own boss. Then you realize that each client is your new boss. We like think of this as the infatuation stage of dating or the honeymoon after getting married. You celebrate a bold choice and the momentum of getting everything in place is overwhelming.

How do you protect yourself when the unfair flawed human condition prevails?

There are several types of insurance that a business should know. Some businesses must engage in implementing all at the same time, there are businesses start-ups that evolve into the various types of coverage.

1. Professional Liability Insurance
Professional liability insurance protects you if you’re sued as a result of negligence during the course of duty.  Such occupations include accountants, architects, consultants, engineers, insurance brokers, doctors, etc. Professional liability insurance is synonymous with malpractice or errors & omissions.

2. Liability Insurance
General liability insurance protects your business if you are sued as a result of injuries sustained by completed operations, product liability, premises and advertising injury.

3. Property Insurance
Property insurance protects against physical damage to buildings, equipment or contents that are vital to business operations that contribute to revenue generating operation.

4. Business Interruption Insurance
Business interruption, or loss of income, protects loss of income/revenue in the event of a covered peril which means a claim must be a covered claim. Without property insurance, a business cannot secure business interruption coverage.

5. Commercial Auto Liability
Some businesses make their living driving a vehicle or a truck which means commercial automobile liability coverage is required especially if it is registered as a commercial vehicle. If registered as a commercial vehicle, then commercial auto liability must be purchased.

6. Workers Compensation / DBL
Have you hired employees or subcontractors? Discuss with your agent how workers compensation and disability benefits law (DBL) coverages apply to your business or how your business is responsible for subcontractors. The last call you want to receive, besides the IRS, is the Department of Labor who conducts audits to uncover how you’re employing people.

7. Employments Practices Liability (EPLI)
EPLI protects against claims by employees who think their legal rights have been violated. Unfortunately given the state of the economy and the high number of layoffs, claim activity has increased. Protect your business practices because even if you’re not guilty doesn’t mean you don’t have to defend the accusation.

You wouldn’t build a house with a roof. Protect your livelihood, protect your investment.

Call us if you’re worried about how to get insured or what it means to be self-insured.