Insurance Policies for Nonprofits and Small Businesses

As a business owner, you understand the importance of insuring your business, but you may not understand the ins and outs of each coverage available. You might understand the basis of what property insurance covers as well as liability, but there are additional insurance policies that you should be aware of.

The following are a few lines of business that are particularly important for non-profits and for-profits alike to consider.

Workers’ Compensation

Workers compensation insurance provides your business with financial protection against hefty lawsuits from your employees, stemming from on-the-job injuries. Workers compensation laws in the United States protect both employers and employees and eliminate the need for employees to demonstrate who was at fault in an accident. With workers compensation, employees injured on the job may be entitled to medical benefits and weekly payments to help them financially as they go through the recovery process.

Umbrella and Excess

Umbrella insurance provides your organization with additional liability insurance that comes in handy when facing a large lawsuit. With umbrella insurance, you have more liability coverage to take care of many different liability issues facing your business. This policy picks up as secondary coverage which is where the idea of the umbrella comes from. Is there a common example for this kind of insurance?

Directors’ & Officers’ Liability

In the event that your business and specific management personnel are named in a wrongful action business lawsuit, you could end up with several thousand dollars of lawyer and court fees. Directors and officers liability coverage provides you with extra security that will cover defense fees and court fees.

No matter how involved your business is in potential lawsuits, having protection is key.

Cyber Liability

Today, more people than ever have access to computers and the Internet. With the ability to access the Internet from a computer, tablet, or mobile device, cyber security is crucial for businesses.

Many businesses have made the switch from paper to electronic records, which means that while your business may be more efficient, your information is vulnerable. Cyber-attacks and hackers can find ways to access a multitude of information, such as Social security numbers, home addresses, credit card information, pay roll information, or sensitive company documents.

If you have cyber liability insurance, your business can be covered in the event of a cyberattack. Cyber-attacks can and do happen to anyone. Don’t wait until your company has lost valuable information!

These lines of business are just a few worth discussing – keep them in mind the next time you meet with your agent!