Categories: Business Owner Highlights

Shana Spiker of SJB Insurance Agency

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
Earthquake
Workers’ Compensation
Errors & Omissions
Umbrella/Excess Liability
Commercial Auto and Garage Liability
Flood
Employment Practices Liability
Directors & Officers Liability
Business Owners Package

Please contact us for all your commercial insurance needs.

Deborah Sweeney

Deborah Sweeney is an advocate for protecting personal and business assets for business owners and entrepreneurs. With extensive experience in the field of corporate and intellectual property law, Deborah provides insightful commentary on the benefits of incorporation and trademark registration. Education: Deborah received her Juris Doctor and Master of Business Administration degrees from Pepperdine University, and has served as an adjunct professor at the University of West Los Angeles and San Fernando School of Law in corporate and intellectual property law. Experience: After becoming a partner at LA-based law firm, Michel & Robinson, she became an in-house attorney for MyCorporation, formerly a division in Intuit. She took the company private in 2009 and after 10 years of entrepreneurship sold the company to Deluxe Corporation. Deborah is also well-recognized for her written work online as a contributing writer with some of the top business and entrepreneurial blogging sites including Forbes, Business Insider, SCORE, and Fox Business, among others. Fun facts/Other pursuits: Originally from Southern California, Deborah enjoys spending time with her husband and two sons, Benjamin and Christopher, and practicing Pilates. Deborah believes in the importance of family and credits the entrepreneurial business model for giving her the flexibility to enjoy both a career and motherhood. Deborah, and MyCorporation, have previously been honored by the San Fernando Valley Business Journal’s List of the Valley’s Largest Women-Owned Businesses in 2012. MyCorporation received the Stevie Award for Best Women-Owned Business in 2011.