Generally speaking, yes. Whether you're truly liable for the claims against you or not, a Business Insurance Policy covers you for any damages awarded against you up to the policy limits. Business insurance also covers you in the event of an out-of-court settlement.
Some policies also cover the cost of hiring an attorney and other costs related to defending yourself in court. It's important to note, however, that a standard business insurance policy won't cover suits arising from discrimination or harassment. For these, you need an "Employment Practices Liability Policy."
Relying on your homeowner's policy to cover losses to your home-office is a dicey proposition. Homeowner's policies aren't meant for this kind of coverage, and they generally cap property losses at specific amounts.
If you've made significant investments in computers, fax machines, telephones, file cabinets, etc., you could easily reach and exceed your homeowner's limits in the event of an unforeseen catastrophe. Even if you're a one-person business operating out of the home, it's a good idea to have a separate Business Insurance policy. Plus, your Homeowner's policy won't provide any business liability coverage.
A Business Owners Policy (BOP) is a type of specialized policy for small-to-medium-sized businesses combining different coverages into a single policy. Sometimes referred to as a small business package insurance policy, BOPs can significantly reduce premiums. Call or email us today to find out if your business qualifies for a BOP.
This depends on the size and type of your business. If you own your business as a sole proprietor, you and your spouse can be named as primary beneficiaries. If your company is a corporation, officers, directors, and others associated with the company can also be named as beneficiaries. It's important to note, however, that BOP coverage only applies to business-related activities.
Business Umbrella Insurance is a type of supplemental coverage that begins providing reimbursement when you reach the payout limits of standard Business Insurance policies. Business Umbrella Insurance works similarly to Personal Umbrella Insurance in that it reimburses you in the event that other policies aren't sufficient to cover your losses.
Because each business and circumstance is different, it's impossible to provide a one-size-fits-all estimate regarding how much coverage businesses should carry. That said, the typical Umbrella policy provides reimbursement for between $1 and $10 million in liability damages.
Worker's Compensation Insurance protects your business if an employee suffers job-related injury or illness. It covers medical expenses and lost wages for sick or injured workers. If you don't have workers' compensation insurance, your business might be obligated to cover those expenses.
In most states, all of a business's regular employees must be covered by some form of workers' compensation. Depending on what state you do business in, failure to provide workers' compensation to applicable employees can result in significant fines, prohibition from public-works jobs, and other, potentially crippling penalties.