Whether you own a large corporation or you are just starting up a business, you are probably concerned with cutting costs whenever possible. As a result of your money-saving goals, you may be tempted to purchase the minimal amount of insurance coverage as required by law in your state. However, it is important to remember that the small cost of insurance is well worth the protection that it can provide if you are ever faced with a liability claim. If your current commercial liability insurance coverage is insufficient for your needs, you could end up paying a lot more in the long run.
Importance of Liability Insurance
Commercial liability insurance is not only a wise investment, but it could also potentially save your business from financial ruin. If you own a corporation, you can secure coverage for you and all other owners, directors, stockholders and executive officers. If you are a sole proprietor, liability insurance may cover both you and your spouse. Each commercial liability policy offers coverage for three main types of liability exposure:
- Operations and premises
- Products and completed operations
These three types of coverage protect your business from claims related to bodily injury or property damage that occur on and off your business site, negligent actions performed by any subcontractors or independent contractors working for you, and faulty products or operations. Your business is your livelihood, so make sure it is protected with the right commercial liability insurance coverage.
Many corporate insurance plans assume that their clients are based on a traditional business structure. In contrast, temporary staffing firms as well as their clients are structured in a newer and more unfamiliar manner. Because most insurance firms assume that companies hire employees directly, they may not be fully addressing your temporary staffing insurance needs. As a result, there may be several gaps in your insurance plan. The most important first step in making sure you are covered is with general liability.
Covers Medical Expenses Due to Job Injury
There may be several potential hazards on the jobsites of your contracted employees, and there is potential for injury. General liability helps you directly address worker compensation claims and covers the associated medical costs.
Protects Against Bodily Damage Suits
While most of your staffers are likely honest, some employees may be looking to make a quick buck. Slip and fall cases, while not covered under law, can frequently result in long arduous and expensive lawsuits. With general liability, your insurer will hire a lawyer and handle the legal process in these cases without billing you for extensive legal fees.
Protects Against Advertising and Personal Injury
Negative publicity can have a major impact on your business’ image and can substantially hurt your profits. As such, it is important to ensure that you are protected against the slanderous actions of others. General liability can help you fight back against wrongful arrests, negative advertising or privacy violations. These actions can result in a number of legal fees, and general liability will fight for you while managing costs.
General liability is the foundation of solid protection, and it is important that you include it in your temporary staffing insurance plan.
You’ve probably had the benefits of being completely insured pounded into your head. As a business owner you know that your business depends on you being completely insured. If you are open to financial liabilities, you may soon not have the money to continue running your business. Fiduciary liability insurance has benefits similar to those of other insurances, but there are a few unique ones as well.
This particular insurance covers you from claims of mismanagement when it comes to the benefits and investments made on behalf of employees. Some benefits of fiduciary insurance are:
- Protection from legal costs. If an employee feels there was a breach in your fiduciary duties, you won’t have to worry about legal costs.
- Personal asset protection. This will protect you from losing assets that don’t have anything to do with the business, and even ones that do.
- Protection from actions of 3rd-party service providers. If you use a 3rd-party to invest your employee’s money, you are liable for their mistakes too. However, if you have fiduciary liability insurance you will be protected.
When you have fiduciary insurance it ensures that you are completely protected. All of the insurance you have for your business makes sure that you are completely protected from every angle. One huge benefit of fiduciary liability insurance is increasing that protection. Talk to an insurance agent today to make sure that all of your bases are covered.
High profile data breaches at Target, Sally Beauty Supply, and the Office of Personnel Management have brought to light the need for data loss insurance, especially when you have thousands of records from customers and clients. If you think that your small business is not at risk, you might want to reconsider your policy on that.
All businesses have private data that needs to be secured. It might be your employee’s information or customer’s credit cards, but you could also be a portal into a larger chain. Hackers use your lack of protection to gain access to larger vendors through your connections. Small to medium-sized businesses are often not as proactive as say, Amazon, to detecting threats, which makes it easier for hackers to gain access.
The National Cyber Security Alliance found that 60 percent of small businesses closed their doors within six months of a security breach of their records, which not only costs your business money but it also damages your reputation. Data loss insurance is one of your defenses against losing all that you’ve worked for in the event of a data breach. Find the right policy to fit your business and cover your assets in the event of a security threat. More importantly, get information on being prepared against hackers when you implement a data loss strategy by working with your insurance company.