Types of Business Coverage

Charles Goodman Group: Friendly Chappaqua Insurance Broker

Most businesses need property and liability insurance at the minimum, and while these policies can be purchased separately, it’s usually more economical to bundle them in a comprehensive business owner’s policy, or BOP. There are many specialized policies you may need to protect your business against hazards particular to your niche. For example, a consulting agency should have professional liability coverage to insure against being sued for giving damaging advice.

When you talk to a Chappaqua insurance agent, ask about the specialized policies that cover lawsuit settlements and legal fees relevant to your business. Most liability insurance policies only cover the costs of lawsuits, legal fees and medical bills associated with personal injury or property damage. If your business is sued for another reason, your current policy may not cover it.

If your business has employees, you may want to get employment practices coverage, which protects you in case an employee sues you for a violation of civil rights. Lawsuits for civil rights violations are unfortunately common, and even when the judgment is in favor of the defendant, the attorney’s fees can be tens of thousands of dollars.

Another type of liability protection you may need is directors and officers coverage. This type of policy insures directors and officers of businesses against being sued for disregarding the rights of others while performing their duties as managers.

The insurance agent experts at the Charles Goodman Group of Chappaqua can assist you with any questions regarding property insurance or automobile insurance.

If such a lawsuit is filed, this insurance typically covers the expenses of the case up to the limit of the policy, including attorney’s fees and the judgment for which you’re found liable. Not having this coverage could leave you underinsured, and being underinsured could lead to your business shutting its doors.

Liability coverage only protects you up to your policy limits, but your business can be liable for more than the usual damage and injuries in many cases. If one of your employees seriously injures a person walking past your place of business, you could be liable for more than $1,000,000 due to the personal injury and pain and suffering of the injured person. Most personal injury lawsuits end in judgments exceeding $1,000,000, and to cover these losses, businesses usually buy umbrella coverage for $1,000,000 to $2,000,000.

Another catastrophe that could shut down your business is data theft. A U.S. House of Representatives study found that 20 percent of businesses targeted by cyber crime had fewer than 250 employees, and 60 percent of them closed within six months. In this situation, data compromise coverage may get your business back on its feet.