What kind of insurance do I need for my business?

INSURANCE BASICS

Insurance is a contract. It covers certain circumstances during a policy period.

Some key terms:

• Declaration Page (summary of coverage)
• Policy Jacket (all the meat)
  • Insuring agreement (what’s covered)
  • Exclusion (takes away coverage)
  • Conditions (when you get coverage)
• Endorsements (adds coverage)
• 1st Party Coverage: covers you, pays you directly
• 3nd Party Coverage: person makes a claim against you

Get the right coverage! Policies to Have or Consider:

• General Liability
  • Covers against bodily injury and property damage due to building conditions or caused by your business operations.
• Errors & Omission
  • Safeguards your business from claimed damages due to acts, errors, or omissions committed while performing your business duties.
• Directors & Officers
  • Protects your business against lawsuits related to management decisions from your directors and officers.
• Workers Compensation
  • Covers expenses and lost wages of your employees injured on the job
• Commercial Automobile
  • Personal automobile policy usually excludes business activity.
• Umbrella Policy
  • Allows additional coverage above a general liability policy, such as:
    • Personal injury liability
    • Contractual liability
    • Vehicle liability
    • Liquor law liability
• Key Man Policies – Do you have a major rainmaker?
  • Like a life insurance policy…the policy can protect your business from the loss of an important business member.
• Disability
  • Covers you or employees against lost wages in case of temporary, or permanent, inability to work due to a medical disability.

 

Coaching Industry: Endorsements to discuss with your broker or attorney:

1. Event cancel or no-show
2. Weather Cancellation
3. Contract Liability
4. Liquor Liability
5. Waiver of Subrogation

Coverage Issues:

1. You lie – material misrepresentation
2. Notice provision (let your insurance company know about your claimed losses/damages)
3. Cooperation
4. Advertising Liability endorsement

Find the best broker you can (different from an agent). An agent is an agent of company, a broker shops around for the best deal.