Coverage Beyond General Liability Insurance

Most business insurance portfolios contain multiple policies. After all, most businesses need different types of coverage. Therefore, it’s going to take time to settle on the policies you need.

Among the most critical pieces of coverage for businesses is general liability insurance. This coverage protects the operation by covering the damage it might do to other parties. If those groups request compensation for damage they sustain, this policy might help you meet their needs without digging into your hard-earned savings.

Nevertheless, only getting general liability insurance might leave certain holes in your coverage. General liability policies are not all-encompassing. So, at times you’ll need to expand your liability coverage. When you need additional coverage, ask your agent about your options.

General Liability Insurance

Think of general liability insurance as the starting point. Some businesses buy it as part of a business owner’s package, or BOP. Others buy it as a stand-alone policy.

General policies will usually cover a few different types of third-party injuries.

• Bodily Injury Coverage: Covers injuries someone sustains in your business or on your property. For example, if a client slips and falls in your showroom, this policy can help cover their recovery needs.
• Property Damage Coverage: If you damage someone else’s belongings, this coverage can pay for repairs or replacement. If your dry cleaning service ruins an antique table cloth, you can use coverage to repay the customer.
• Personal Injury Protection: The damage you might cause someone might not be physical. Libel, slander or false arrest all could cause considerable harm to someone else. This coverage can help you cover related losses.

Keep in mind, all general liability coverage is different. Check with your agent to see how your specific policy governs each type of coverage. Some policies might not contain each element of coverage.

These aren’t the only problems that might come between the business and those with whom it does business. Often, you’ll need to expand your general liability coverage with specialty policies. Let’s take a closer look at what these might include.

Umbrella Coverage

No insurance policy covers every conceivable accident. Liability insurance is no different.

Your general policy will likely come with exclusions, and financial limits. For example, it might not cover malpractice insurance for doctors. There’s separate insurance for that. Furthermore, it will likely have monetary limits. This means it might not provide enough money to cover the most expensive losses. Umbrella insurance might help you cover damage that exceeds your standard limits.

Umbrella coverage comes with higher limits. It might also cover damage not included in your standard liability policy. For example, let’s say you have $500,000 in general liability coverage, but someone sues you for $1 million in damage. That means you might have a $500,000 gap in how much you wind up owing.

Do you really want to pay $500,000 out of pocket? With umbrella coverage you might not have to. A policy with $1 million limits might help in this regard.

Commercial Auto Insurance

Car insurance and business insurance are two different things. Though auto coverage comes with liability insurance, it must come in its own policy. Auto liability coverage protects you if you are the at-fault party in an accident and must pay the other driver.

Commercial auto insurance is similar to standard coverage. However, it comes with limits tailored specifically to the business. Do not attempt to insure a vehicle owned by or used for business with standard coverage. However, if you have business vehicles, make sure they have coverage.

Cyber Liability Insurance

Threats like viruses, malware, hackers and even simple computer breakdowns might cause you to lose sensitive customer data. Should data get lost, or worse, expose a customer’s private information, cyber liability coverage can help.

This policy might help you repair your data networks and make them more secure for the future. Furthermore, it might also pay for regulator notification, and other damage control like credit monitoring for customers at risk of identity theft.

Errors & Omissions Protection

With professional services, there’s a chance you could make a mistake that causes someone else a loss. An accountant who makes mistakes on tax forms might make that person face unfair charges. Following this mistake, the customer may sue for the lost costs. Errors & omissions coverage (or E&O protection) might help business owners pay for the damage they accidentally cause in the course of their advice.

Directors & Officers Coverage

Businesses with boards or executives often need to cover risks related to decision-making. D&O coverage is the protection you need in this case. It will help pay for legal settlements or other costs stemming from the decisions made by the board. Generally, these policies can prove extremely beneficial when retaining talent. It helps prove that the business values its mangers’ capacity.

So, when reviewing your business insurance, talk to your agent. They can help you examine liability policies to choose the ones that are of most benefit to you. Don’t wait to get coverage. Start today.