Stephanie has spent many years running her own business, starting a non profit, acting and working in the entertainment industry. She is a dynamic speaker and loves working with businesses and joining McCam Insurance was a natural fit for her.
When you drive a car you are required to have insurance. Even when you own a home, even if you don’t have a mortgage, you would still want to protect that huge investment. But with a business, many wonder if they do in fact need insurance. The easiest way to put insurance into perspective is to remind you that “Anybody can sue anyone, for anything.” Even if you are pulled into a frivolous lawsuit, it will take thousands of dollars in legal fees just to get yourself cleared from the suit.
Here is a brief overview of some of the different types of business insurance to consider:
Commercial General Liability (also known as CGL):
All businesses need CGL.
It has been nicknamed “slip and fall” insurance because it provides assurance that if anyone comes onto your property, like a customer or delivery person, and they are injured, the policy will be called into action. Helping both in legal fees, as well as court ordered damages that have to be paid out. This type of insurance can also extend to contents/equipment/stock coverage which can sometimes be substantial and could put you out of business if you ever lost your entire inventory and all your equipment in the event of an insured loss. Additional extensions of coverage include non-owned auto and coverages for the building itself, if you own it, and Tenant’s Legal Liability if you rent. If you sell a product or service, CGL is your foundation of insurance.
Errors & Omissions (also known as E&O):
In business, this type of insurance is essential if you offer a professional service or give advice.
A third party can hold you liable for financial loss if they based their actions on your advice. Most think of Doctors, Lawyers, Financial Advisors, and Insurance Brokers as a few of the industries that fall under this but consider if you advise clients. More and more Life Coaches, Marketing and PR Companies, along with Personal Trainers and Aesthetic services, realize that their work with clients opens them up to the possibility to lawsuits with their advice and services.
It may be a nightmare to face a computer hacking, where all your data is ransomed or deleted, and the amount of money to try to put your business back in order is staggering. But, consider the even larger horror if you have any customer data. Your customers’ info is precious and they can certainly sue you if you have not protected them. Never assume that cyber-attacks only happen to huge companies, hackers are well aware that small businesses are an easier target as they prove to be the most vulnerable. Also, with more and more people working from home and sharing devices (with their family members) the exposure is greater than ever.
Directors and Officers (also known as D&O):
Charities and not-for-profits as well as corporations are well aware that they need to protect their Directors. If Directors make decisions that impact the members, shareholders, or partners negatively, they can be held liable as wrongful acts. Without D&O, lawsuits can extend to the Board of Directors’ personal assets.
Offering products and services, giving advice, and making decisions on behalf of groups, opens all businesses up to potential risks and the right insurance can make the difference between assurance and uncertainty. Talking with a broker is a good first step, and remember, insurance quotes are always free!
Stephanie and I discuss insurance in our recent chat below.