Our affiliate this week Shana Spiker knows commercial insurance like the back of her hand and is here to answer some of the biggest questions that small businesses face. Why do you need liability insurance and what does E&O do exactly are among a few on our Q&A session with Shana. Keep reading to find out more below!
Without the right business insurance coverage, your business could suffer financial ruin due to a catastrophic loss or legal lawsuit. Obtaining commercial insurance unique to your business needs will allow you to plan for the worst case scenario, maintain a successful, viable business and provide peace of mind. SJB Insurance Agency can review and assess your business needs for complete protection of your business.
Over 78% of all U.S. businesses are structured as a partnership or sole proprietorship, according to Bizstats.com. For the majority of small business owners, this form of ownership puts your business and personal liabilities at risk. Owning business liability insurance protects both your business and personal life from financial ruin. There is so much at stake and the cost of this business insurance coverage is so inexpensive that you’re really not doing yourself any favors if you don’t protect yourself by having business liability insurance – regardless of how your business is structured.
What does Business Liability Insurance cover?
If you are sued for personal injury or because of damage to property, you’re covered for the claim and the legal defense costs with most policies.
In many cases, you can buy a generic policy known as General Liability Insurance. This will provide the benefits mentioned above. If you provide professional services, you should consider buying errors and omissions insurance in addition to the general liability policy. If you manufacture a product, you should protect yourself with a product liability insurance policy.
Do I need to have workers’ compensation insurance?
Yes, California law requires employers to have workers’ compensation insurance if they have even one employee. (Out-of-state employers may need workers’ compensation coverage if an employee is regularly employed in California or a contract of employment is entered into here.)
Who Needs E&O?
While errors and omissions insurance has been a hot item for doctors, lawyers, financial services professionals and realtors, all businesses face professional liability risk. To determine whether you need E&O, ask yourself : “Can I afford to wage or lose a civil lawsuit arising out of professional error on my part?” For the majority of small businesses, the answer is no. That’s because the American legal system tends to severely punish professional error with awarded judgments in seven figures and up. Even if you win a lawsuit, there’s the question of paying the lawyers.
If you subject E&O to a quick risk-benefit analysis, you’ll see that the annual premium, which is generally affordable is well worth the protection. Remember, the vast majority of small businesses can be shut down by a single unfavorable ruling in court.
SJB Insurance Agency specializes in all lines of commercial insurance.
With 16 years of experience, agent Shana Spiker can help protect your business with the proper commercial insurance. As a broker, SJB isn’t captive with just one insurance carrier but has access to many carriers including admitted carriers; Progressive, CNA, The Hartford, Travelers, Employers, Everest, Zenith and Zurich. SJB has markets for all commercial insurance coverages needed:
- Commercial General Liability
- Commercial Property
- Workers’ Compensation
- Errors & Omissions
- Umbrella/Excess Liability
- Commercial Auto and Garage Liability
- Employment Practices Liability
- Directors & Officers Liability
- Business Owners Package
Please contact us for all your commercial insurance needs.