Basic Types of Business Insurance for Companies of All Sizes

Whether you own a small business or run a large corporation with multiple offices, insurance is an essential expense. Consider the cost of having to cover claims against your business. It could be a major cut in the profits for a major company and be the final blow for a fledgling business. Consider the basic types of business insurance available for companies of all sizes and which ones might be right for your needs.

Liability Insurance

A company needs to be protected if it gets sued. Clients may claim the business was negligent in its services, dealings, or advice. Liability insurance will protect a company that is facing these type of charges. It can become costly to pay for the legal fees and damages associated with certain claims. A business with insurance has greater peace of mind if a claim is filed, knowing this coverage will help to take care of it.

Property and Casualty Insurance

Property and casualty insurance are often purchased together. Casualty insurance differs from property insurance because it covers the loss or damage to the actual business rather than anything it owns, possesses of leases. However, property insurance will protect a company against loss or damages incurred at your company location. Its contents are protected by this insurance as well as property that could belong to others at the time the loss occurs. It is important to read these type of policies carefully as they are clearly defined. Only certain situations are covered, such as a fire or flood. If there are other risks, you should discuss them with your insurance agent to find out if coverage is available.

Workers Compensation Insurance

Certain types of insurance could be mandatory for your business to have, such as Workers' Compensation insurance coverage. Every state has its own unique requirements for this type of policy and is a business owner's responsibility to find out what they are and be in compliance. Employees are not able to sue their employers for injuries they sustain. The employer becomes part of a system with this coverage. This system pays for the employee's medical bills and other damages if they get injured on the job.

Commercial Auto Insurance

Another type of coverage that often gets overlooked is commercial auto insurance. Not all businesses need this coverage, but it is important to find out about it. Personal auto insurance does not cover the vehicles that are used by a company. Commercial auto insurance is what covers the vehicles used for business purposes if there is an accident or incident that leads to personal injury or property damage.

These are some of the basic types of coverage businesses should carry. There are also other options, such as health insurance and life and disability insurance. Contact your insurance agent today to review your needs and find out which coverage you should get to be compliant and manage risk at your company. Otherwise, your company could be liable to pay for hundreds or even thousands of dollars in damages.


Strategic Insurance Agency Inc.
568 S Livingston Ave
Livingston, NJ 07039
(973) 422-1324

Business People Who Should Invest in Professional Liability Insurance

It can take years of education and hard work to finally enter into your chosen profession. In some instances, people also have student loans to payoff as well as business loans taken out to help them get started. This means making a profit and avoiding losses are top priorities. Consider business people who should invest in professional liability insurance and why it is a necessary expense when you choose certain careers.

What is Professional Liability Insurance?

Professional liability insurance covers what general business insurance does not. This refers to claims of negligence and more than could be initiated by clients. Professionals are deemed to have special expertise in a certain area. General liability coverage does not provide protection against claims that come from professional or business practices. These include claims such as misrepresentation, malpractice, and negligence. There are professionals that should always have this level of protection in case a claim is filed.

Medical Professionals

Each day, medical professionals are responsible to care for patients. They make diagnoses, treat injuries, prescribe medication, and make health care recommendations. Some of them conduct surgery and others provide mental or emotional counseling. All of these services carry a great level of risk and many are performed with just a split second to make a decision. Errors may arise or clients might think a medical professional made a mistake because they did not achieve their desired outcome in a speculative field with many variables. A claim could be costly and some professionals are not completely covered by the hospital, clinic or facility they work for. It is important to have your our professional liability policy when you are a doctor, nurse, surgeon, counselor, or other health care professional.

Attorneys

Attorney are responsible for the lives of their clients in a different way. They provide legal advice that can change the course of a person's life. This includes situations such as crimes, divorce, personal injury, estate distribution, establishing and dissolving businesses, collections, and much more. People rely on this advice to deal with legal issues that arise in their lives. If a case is not resolved to their satisfaction or they received legal advice that did not work out as they wanted, legal professional could be facing a costly claim. Having insurance helps to cover these expenses and minimize the loss to your business.

More Professionals Who Need Coverage

Many other skilled and educational professionals face risk every day they help clients. Consultants are responsible for some of the business choices made by clients. Accountants help clients take care of major financial decisions. Contractors must guide the building or renovation of commercial and residential buildings, where this is plenty of opportunity for errors and omissions (E&O).  All of these career people should also carry professional liability insurance in case a claim is filed.

Ask your insurance agent about getting professional liability insurance to avoid costly claims that could soak up your hard-earned profits. 

Strategic Insurance Agency Inc.
568 S Livingston Ave
Livingston, NJ 07039
(973) 422-1324

Five Reasons to Invest in Business Insurance for Your Small Business

There are many ways to cut costs when you own a small business. You can change suppliers, outsource work, or find ways to charge more for certain unique services. It is important to find ways to save money so your business can continue to be profitable. But the one cost that should never be compromised is business insurance. While it is prudent to look for the best coverage the lowest price, it is unwise to skip on getting business insurance. In fact, certain types of insurance could be required by law. Discover six reasons to invest in business insurance for your small business.

1. Compliance is Key

Depending on the state where you do business and if you have employees or workers, it could be legally required to carry insurance such as disability and workers' compensation. Consult with an insurance agent to see if you need this important coverage. Failing to carry it could lead to serious penalties and costs for your company. Plus, workers will expect your company to have this coverage. Also verify if you need business auto insurance if your workers need to drive to do their work. An accident might not be covered under a personal policy.

2. Lawsuits Happen

Everyone likes their clients, even the ones that can be a hassle sometimes. After all, clients and customers keep you in business. As much as they can be a benefit, they can also become a loss. Lawsuits happen and clients sue businesses every day. From getting injured on the premises to feeling you made an error on their work, clients could sue you. Whether they are right or wrong, it could cost your business more than it can afford. Insurance can cover legal expenses, damages, injuries, and more.

3. Expensive Equipment

Most businesses have some type of costly equipment. This could include computers, tools, inventory and more. Imagine if this expensive business stuff was lost in a fire or stolen. It could put your company out of business and in the red. Protect this costly equipment and materials by investing in the right level of business insurance. If something happens, it can be replaced so your business can continue immediately.

4. Reduce Risk

It makes sense to reduce the risk you face each day. Having insurance makes you, your clients, and your employees feel more at ease. Plus, it can be beneficial if you business applies for a loan as you can show you are finding viable ways to manage risk. Wherever there is risk in your business, there is sure to be an insurance policy to cover the potential costs and damages.

5. Confidence About the Future

Having business insurance gives you greater peace of mind and confidence about the future. You are not always waiting for the proverbial shoe to drop. You can operate your business with confidence, knowing that you have the right level of coverage in place. If a lawsuit arises or property damage occurs, you are ready to handle it without the fear that an accident or incident will close the doors of your company forever.

Strategic Insurance Agency Inc.
568 S Livingston Ave
Livingston, NJ 07039
(973) 422-1324