Business Insurance Tips

  • Most people don't think much about their business insurance, but the 3 most common things people forget to include are...

    • Employment Practices Liability Insurance (EPLI) - this is for lawsuits arising out of hiring/firing practices, sexual harassment, and discrimination

    • Cyber Liability - even if you only run credit cards or store names, emails, and phone numbers you could be at risk. Any personally identifiable information is subject to hacking and financial ruin for your business

    • Equipment breakdown coverage - if a machine breaks down and isn't something that can be immediately repaired then every minute is lost revenue to your business

  • Imagine suddenly being in business with a random relative of your business partner... just think about the impact of that for a minute....

    If you don't have a buy/sell agreement then that is exactly what will happen - a relative will inherit their share of the business and you get to run your business with them. Chat with your business attorney about drafting a buy/sell agreement if you don't already have one then fund it with life insurance. Unless you just have half the value of your business sitting in your account to buy out that family member life insurance is the most cost effective way most people handle this.

  • Your best employee didn't show up to work today. What would be the impact of that?.... lost revenue, lost sales, a six month recovery for the business?

    How nice would it be to get a check to balance out the income dip and provide a bonus to recruit a new rockstar employee?

  • Probably not…

    People often don't realize vehicle insurance is just that... vehicle insurance. It typically only covers the vehicle itself, stock, from the factory. Any modifications to the vehicle and any contents of the vehicle are not automatically covered. Vehicle modifications can be added to the vehicle insurance policy, but all contents are typically covered separately.

    Therefore if you have a car break in there will be 2 claims - 1) for the damage to the vehicle, filed under comprehensive with a deductible, and 2) for the stolen contents, filed under your business/inland marine (the strangest name ever) insurance with a separate deductible, that is usually $500-$1,000+.

  • Does your business location have storage outside of your individual unit in the building? If so and your office location is listed with your suite # it's probable the items you have store there aren't covered.

    Usually "location" is defined by the location listed on the policy and within 100 feet. Therefore that storage on the other end of the building more than 100 feet away isn't covered!

    It's best to check just to make sure you don't get surprised later.

  • Earthquake insurance is becoming more and more common as fears of "the big one" increase. A few notes on earthquake insurance...

    • It's not often included in regular business insurance unless you are in a low-risk area or are grandfathered

    • It typically has a % deductible as it's for the "big one." If there is a tremor and a desk falls over the deductible will not be reached

    • Pricing and carrier options are dependent on the age of the home, location, and if the home has been earthquake retrofit

  • It is no doubt tech is transforming the way we do and monitor our businesses. Just be aware for commercial insurance theft coverage for a business usually requires a centrally monitored alarm system.

    Smart monitoring systems are great but must rely on you to respond. If you’re asleep and miss a notification a 24/7 monitored system makes all the difference.