Business Is Risky. What Type of Insurance Does Your Company Carry?

Being in business is inherently risky. Damage can be caused to people or property and you or your company may be at fault. To mitigate the risk and provide for the cost of such mishap’s businesses need and in most cases are required by law to carry insurance. Insurance is an ordinary and necessary expense required to perform business operations and therefore is a tax-deductible expense. Insurance comes in many sizes and flavors and therefore cost can vary widely.

As it protects your business and employees from liability it also ensures that your customers are protected financially should you or your company do something that causes them harm. It’s for this reason that many larger commercial clients and government contracts will require certain coverage minimums before they allow you to set foot on their property.

Below is a brief explanation of the types of insurance that all PCOs and lawn care companies should have at a minimum. Workers Compensation provides for the payment of lost wages, medical treatment, and rehabilitation services to workers suffering from an occupational injury or disease. The basic principle underlying workers’ compensation programs is that benefits are provided to injured workers without regard to fault and, in return, employers would face limited liability. 

In other words, workers are entitled to benefits if the injury was caused by their employment, regardless of who caused the injury, and employers would not be responsible for those incidents eliminating lawsuits for negligence.

Commercial General Liability helps protect businesses and their employees from the risk of lawsuits involving claims of bodily injury, property damage including:
• Errors & Omissions Liability (Jobsite Pollution coverage including Environmental Damage
• Sudden and Accidental Pollution Coverage (for your business locations)
• Auto Hazard Pollution Liability Coverage
• Exterminators Liability: Care, Custody and Control Coverage
• Pest Inspection Damage Liability Coverage
• Lost Key Coverage
• Blanket Additional Insured Coverage

Commercial Auto Insurance covers injuries that you or your employees may cause to people and their property while driving. A typical commercial auto policy may include:
• Liability coverage
• Medical payments coverage
• Comprehensive coverage
• Collision coverage
• Uninsured and underinsured motorist coverage
• Coverage for vehicles you rent or borrow
• Coverage for employees who use their cars for business

Employment Practices Liability Insurance (EPLI) provides coverage for wrongful acts arising from the employment process. The most frequent types of claims covered under such policies include:
• Wrongful termination
• Discrimination
• Sexual harassment
• Retaliation

In addition, EPLI policies cover claims from a variety of other types of inappropriate workplace conduct. The policies cover directors and officers, management personnel, and employees as insureds.

Cyber insurance provides protection against damages resulting from electronic threats to your computer systems or data. These threats can result in things like stolen or damaged information and expensive liability and recovery costs.

Any business that stores or processes sensitive information like names, addresses, employee social security numbers and or credit card information needs cyber insurance. A Cyber policy will cover costs related to IT forensics investigation, data restoration, legal liability and customer notification.

Business is risky. Protect yours with the right kind and the proper amounts of insurance.

Author: Dan Gordon