Service business owners are vulnerable to the same types of liabilities a manufacturing plant or physical labor operation might entail. As someone who runs a business, you are expected to be familiar with the day-to-day uncertainties of small business management and the relevant risk management policies.
Why do you need business liability insurance?
Business liability insurance coverage protects your business with defense costs, from third party claims for bodily injury, associated medical expenses and property negligence/damage. Any individual or business providing an opinion, making recommendations, advocating solutions, offering services, dealing in the manufacture, wholesale, distribution, and retail of a product is at risk for a professional liability lawsuit. In certain cases, such policies may also cover the lost income and expenses that a business owner incurs.
You should consider this coverage if you or your employees:
Additional coverage benefits:
This type of insurance protects your business against malpractice, errors, and negligence in provision of services to your customers. Business liability policies are issued on a "claims made" basis. For a claim to be covered, the alleged error or omission must have been covered by the policy and must have taken place on or after the effective date of coverage, till before the policy's expiration date; and the claim must be made while the policy is still active. The typical individual limit for any single liability claim resulting from a lawsuit is $1 million. Legal fees and court costs incurred by the business owner that can add up quickly into a giant financial burden are reimbursed by the E & O insurances.
This insurance covers you against financial risk due to suits filed by past clients, even post retirement. Some cases may defend spouses, innocent partners, beneficiaries and legal representatives even though they had nothing to do with the main financial business. Why improvement in business processes must accompany an E & O insurance purchase? Inadvertent errors while servicing your clients in lieu of fees can be disastrous for a business – both its reputation and its finances. Sometimes the claim against the company can be malicious or inane.
Yet the long and expensive legal dispute which may or may not lead to a settlement, and the legal costs; could mean the end of your business if your assets are insufficient to cover the settlement. Having Errors and Omissions coverage as part of your insurance portfolio means you can protect your business while working towards its growth and expansion.
So, why wait…….get your business insurance smart!
Why do you need business liability insurance?
Business liability insurance coverage protects your business with defense costs, from third party claims for bodily injury, associated medical expenses and property negligence/damage. Any individual or business providing an opinion, making recommendations, advocating solutions, offering services, dealing in the manufacture, wholesale, distribution, and retail of a product is at risk for a professional liability lawsuit. In certain cases, such policies may also cover the lost income and expenses that a business owner incurs.
You should consider this coverage if you or your employees:
- visit a client’s work premise, or clients visit yours
- have access to a client’s equipment or physical assets (e.g. a client’s server)
- write or speak about a client’s business
- use third-party locations for business related activities
- before entering into a business contract
Additional coverage benefits:
- Special lower insurance costs: If your business is home based, there is an offer of rate reduction of up to 10%
- Claims monitoring: If a covered claim is reported, the insurance agency will immediately swing into action and even if the claim has no basis or, if necessary, appoint an attorney to defend you
- Affordable payment options: Option of making monthly payments (with no additional processing fees) to help manage your cash flow
- Easy on line process
- Coverage flexibility: Business insurance policy can be adjusted for whatever products and services you deal with. While the basic policies cover you for the sale and servicing of consumer products, optional coverage for fixed and indexed annuities, variable products and mutual funds, disability insurance, and RIA Series 65 may be enforced, if needed
This type of insurance protects your business against malpractice, errors, and negligence in provision of services to your customers. Business liability policies are issued on a "claims made" basis. For a claim to be covered, the alleged error or omission must have been covered by the policy and must have taken place on or after the effective date of coverage, till before the policy's expiration date; and the claim must be made while the policy is still active. The typical individual limit for any single liability claim resulting from a lawsuit is $1 million. Legal fees and court costs incurred by the business owner that can add up quickly into a giant financial burden are reimbursed by the E & O insurances.
This insurance covers you against financial risk due to suits filed by past clients, even post retirement. Some cases may defend spouses, innocent partners, beneficiaries and legal representatives even though they had nothing to do with the main financial business. Why improvement in business processes must accompany an E & O insurance purchase? Inadvertent errors while servicing your clients in lieu of fees can be disastrous for a business – both its reputation and its finances. Sometimes the claim against the company can be malicious or inane.
Yet the long and expensive legal dispute which may or may not lead to a settlement, and the legal costs; could mean the end of your business if your assets are insufficient to cover the settlement. Having Errors and Omissions coverage as part of your insurance portfolio means you can protect your business while working towards its growth and expansion.
So, why wait…….get your business insurance smart!
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