Please understand this is a LOT of information, catered to educate you on everything you need to know about your Commercial Insurance.

Commercial Insurance Checklist

General Liability

(CGL) is the specific name for a policy of this type in the United States insurance market. It is the “first line” of coverage that a business typically purchases,[1] and covers many of the common risks that can happen to any type of business, such as bodily injury or property damage on the business premises or due to the business operations, personal and advertising injury, and medical payments.

However, if you are a remote worker the bigger risk is professional liability which is rarely mentioned but both are required to protect you and the business.

Wet Floor Sign

Employer Practices Liability Insurance

(EPLI) is an area of United States labor law that deals with wrongful termination, sexual harassment, discrimination, invasion of privacy, false imprisonment, breach of contract, emotional distress, and wage and hour law violations. It may be categorized as a form of professional liability. Employment practices liability insurance (EPL) is sold as a type of management liability insurance.

Sometimes classified as (me too insurance) coverage as it this is the main protection between employer and employee.

consultant

E&O Professional Liability

(PLI), also called professional indemnity insurance (PII) but more commonly known as errors & omissions (E&O) in the US, is a form of liability insurance which helps protect professional advice-, consulting, and service-providing individuals and companies from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in such a civil lawsuit. The coverage focuses on alleged failure to perform on the part of, financial loss caused by, and error or omission in the service or product sold by the policyholder.

General liability covers physical risks, such as bodily injuries and property damage. Professional liability insurance covers more abstract risks, such as errors and omissions in the services your business provides. Mainly what it is you do!

Commercial Umbrella Insurance

Commercial Umbrella Insurance refers to liability insurance that is more specified than other policies such as GL. It is also potentially primary insurance for losses not covered by the other policies. When an insured person is liable to someone, the insured’s primary insurance policies pay up to their limits, and any additional amount is paid by the umbrella policy (up to the limit of the umbrella policy). 

More protection for less money 

Cyber Insurance

Cyber Insurance is a specialty insurance product intended to protect businesses from Internet-based risks, and more generally from risks relating to information technology infrastructure and activities. Risks of this nature are typically excluded from traditional commercial general liability policies or at least are not specifically defined in traditional insurance products.

Coverage provided by cyber-insurance policies may include first-party coverage against losses such as data destruction, extortion, theft, hacking, and denial of service attacks; liability coverage indemnifying companies for losses to others caused, for example, by errors and omissions, failure to safeguard data, or defamation; and other benefits including regular security-audit, post-incident public relations and investigative expenses, and criminal reward funds.

If you take credit card payments or store data on clients, it’s a must. It’s not if you can get hacked, its when. Nearly 4000 new cyber-attacks occur every day. Every 14 seconds, a company falls victim to a ransomware attack.

cyber
man with hurt neck

Work Comp Insurance

Work Comp Insurance is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee’s right to sue his or her employer for negligence.

The trade-off between assured, limited coverage and lack of recourse outside the worker compensation system is known as “the compensation bargain”

Even in states that do not require this like Texas it doesn’t mean you are not liable for the cost of medical. Work comp is less expensive than medical bill and injuries.

Business Personal Property Coverage

(BPP) insurance offers financial protection against lost, damaged, or stolen business property. It covers assets such as computers, furniture, tools, and inventory. 

The least expensive coverage and even if you work from home, homeowners insurance was not designed to cover home offices and expensive computer equipment.

D&O Directors and Officers

(D&O) liability insurance is insurance coverage intended to protect individuals from personal losses if they are sued as a result of serving as a director or an officer of a business or other type of organization. It can also cover the legal fees and other costs the organization may incur because of such a suit.

Even volunteer roles for non-profits etc. this coverage is needed to protect yourself from legal situations that can arise form this work paid and unpaid.

Flood Coverage

Flood Insurance is the specific insurance coverage issued against property loss from flooding.

Once only covered buildings and building owners… now flood is offered for contents and tenants alike. 

Hired Non-Owned Auto Endorsement

Hired and non-owned car insurance provides insurance protection while driving vehicles your business doesn’t own for work purposes. 

Like sending an employee to pick up lunch or other errands can put the business at risk without this endorsement.

Product Liability / Relabeling

Product liability insurance helps protect your business from claims that a product you made or sold caused bodily injury or property damage to someone else’s belongings. 

Also needed for just relabeling something you didn’t make. Once you cover a label for one brand with yours, it transfers all the liability to you for the life of the product.

cbd with orange juice in background

What Your Personal Insurance Should Look Like as a Business Owner

Your personal insurance needs to be built differently as a business owner because most attorneys do not go after just the business itself, they go after the individual. LLC or not, you are named on the formation paperwork so make sure you have the protection even with your personal insurance. 

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