The Murzzy Blog
A small business can still be subjected to different types of risks. Therefore, owners of small businesses still need insurance to ensure that their investments can withstand any problem along the way. To help you in determining the type of insurance that you need, you can try the life-cycle approach.
The capability to do work everywhere
With the continuous innovations in technology, people are finding it more possible to conveniently and efficiently work everywhere, even in the comfort of your own home. For this reason, more and more houses now have a designated office room.
In case your work is not for your own business, you may endorse your Renters Policy. In order to extend the liability protection for accidental office exposures. A modification of the Homeowner Policy is an inexpensive and easy approach to increase your business property coverage limits. Usually, the standard limitation is $2,500 for business losses at your house, but it can be a mere $250 if the business property is away from your home. Lots of insurers, for an extra monetary consideration, can allow the Homeowner Policy to cover up to $10,000 of business property. This can be the best solution for telecommuters.
Home Based Business
A huge percentage of small businesses are based at home. Even if your home business is merely a side business, you need to consider extra risks that you can be exposed to. These may not be a part of the amended Homeowner policy.
Here are a few:
1) Personal property used for business whether it is found inside or outside the premises
2) Inventory currently at your store or on hand.
3) Other people's business property under your care or responsibility.
4) Accounts receivable
5) Records and papers of value
6) Coverage for electronic data.
7) Liability extension to completed operations and general commercial liability. It may also be extended to contractual liability, products and personal injury.
8) Automobile - If you have a carrier business that transports products, and supplies or visits customers. Usually, your auto policy will not cover this.
You can protect yourself from these extra risks through the Home Based Business plan. Plans like this usually allow the protection for property and liability for up to 3 employees.
If your primary source of income is your home business, then you need to provide coverage for the extra expense and business interruption. A Home Based Business policy usually includes this protection.
Small Business Level
A lot of Home Business Insurance policies assume that you do most of your business at home. If this is not the case, you may need a plan that provides coverage when you work away from home. There may be limits for Home Based Business plans depending on the greatest protection limits and the number of employees. You may use this for Loss of Income, Business Interruption, Business Personal Property and other risks. If your business needs these, you should get a Business Owners Package Policy.
Listed below are some types of insurance that you need to consider at this stage of the business cycle.
1) Employment Practices Liability
EPL provides protection from claims from former or current employees. It may be from harassment, wrongful termination, discrimination and related cases.
2) Professional Errors and Omission Insurance
E&O, also known as professional liability, covers various professional or advisor roles. It pays for damages and legal costs in case your mistake causes damage to a client There are typical businesses that need E and O insurance such as hair stylists, graphic designers, consultants, mortgage brokers, appraisers and real estate agents, computer consultants, and financial planners.
3) Directors and Officers Insurance
D&O is like the E&O policy for company owners. It pays for legal damages and costs in case someone sues the officers of a company. Usual causes of action for these cases are the ways on how the officers run the company and the consequences that follow.
At Murzzy SRI, Inc. we take pride in making sure our clients are well protected at prices they can afford. To learn more about how we can help you, please contact our agency at (877) 929-2612 or Click Here to request a free quote.
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