Important Insurance Policies Every Business Should Have

Usually the first types of insurance policies that any business will purchase consist of general liability, a business owner’s policy, commercial auto, workers comp, and perhaps an Errors & Omissions policy. But there are other important insurance policies that every business should consider getting – especially as their business continues to grow and expand.

Employment Practices Liability Insurance (EPLI)

EPLI covers businesses against claims by workers that their legal rights as employees of the company have been violated.

This policy is especially important as you begin to hire your first set of employees and grow your team. It’s easy to be more casual and friendly as you’re growing, but putting this policy in place from the beginning will protect you in the long run.

EPLI provides protection against many kinds of employee lawsuits, including claims of:

• Sexual harassment
• Discrimination
• Wrongful termination
• Breach of employment contract
• Negligent evaluation
• Failure to employ or promote
• Wrongful discipline
• Deprivation of career opportunity
• Wrongful infliction of emotional distress
• Mismanagement of employee benefit plans

The cost of EPLI coverage depends on your type of business, the number of employees you have and various risk factors such as whether your company has been sued over employment practices in the past.

Want to minimize your risk for EPLI claims? Visit this page to get more information.

Business Interruption Insurance, specifically Off-site Power Disruption Coverage

 During Hurricane Sandy, a number of businesses and restaurants in the area were shut down due to loss of power. Much of the power loss did not occur due to direct damage from the storm but rather from off-site damage.

For situations like this, an off-site power disruption endorsement on your policy is handy to have, especially if your business requires a physical location. Restaurants, food stores, and food brokers should also purchase Spoilage Coverage, which provides for losses caused by a change in temperature or humidity resulting from complete or partial interruption of electrical power, either on or off the described premises, due to conditions beyond your control.

Business Interruption Insurance is not sold as a standalone policy but you can add it as an endorsement to: Commercial Property Insurance, Business Owners Policy (BOP), or Commercial Package Policy (CPP).

Cyber Liability, Data Breach & Ransomware Coverage

Just about any organization that uses technology to do business faces cyber risk.

If you’re a small- to mid-sized business, you may not think you’re a large enough target for hackers and data breach. In reality, small- to mid-sized businesses are the most vulnerable to cyber-crime.

Increasing in popularity is the use of Ransomware, a type of malicious software designed to block access to a computer system or server until a sum of money has been paid.

As technology becomes more complex and sophisticated, so do the threats we face – which is why every business and organization needs to be prepared with cyber liability insurance.

We understand the complexity of cyber threats and have cyber liability insurance solutions to help protect your business assets.

Hired and non-owned auto coverage

Hired Auto coverage provides Liability insurance for vehicles you lease, hire, rent, or borrow to use in connection with your business.

If you or one of your employees ever drive a vehicle for business purposes that’s not listed on your policy, then you might need Hired Auto coverage for liability protection.

• You send an employee to make a delivery in their car
• You borrow a truck to pick up equipment
• You rent a car on a business trip
• An employee runs to grab lunch for the office

Without these coverage endorsements, your business is at risk in any of the above or other similar situations where a vehicle not owned by the business is used for business purposes.

By having the right insurance in place, a business can avoid a major financial loss due to a lawsuit or catastrophic event. Give us a call today at (732) 566-0003 or use the contact form in the sidebar for more information.