Small businesses need suitable types of insurance to protect assets against damage and legal claims. While most business owners hope they’ll never have to rely on insurance, the truth is, it’s an essential investment. It could make the difference between closing up shop and healthy business longevity.

 

Workers’ Compensation: This coverage is required in most states since it was instituted more than 100 years ago as part of a ‘grand bargain’ between employers and employees.  Workers’ compensation coverage exists to serve as employees’ remedy for work-related injuries or illnesses. In exchange for this guarantee of coverage, employees waive their right to sue employers over workplace injuries.

 

Cyber Liability: This provides liability coverage in the event a third party sues a business over damages incurred from a data or privacy breach. There’s also First-Party Cyber Liability which provides coverage for damages or costs incurred by the insured to investigate and remediate the breach.

 

Employment Practices Liability: This particular coverage is designed to protect a business and its management personnel if it’s sued for wrongful termination, discrimination, harassment, hostile work environment, invasion of privacy, breach of contract, emotional distress, or wage and hour violations.

 

Other types of liability coverage include: property, automobile, product, professional, general, and even errors and omissions if you happen to be in the media industry. Each type of coverage is unique for each small business, so it’s important that you talk with a professional to help protect your business. If you’re a small business owner, give us a call today.

 

Adapted from Acadia Insurance1

Securities offered through SCF Securities, Inc Member FINRA/SIPC 155 E Shaw Ave. Suite 102, Fresno, CA 93710: (800)955-2517. SCF Securities, Inc and Creative Financial Strategies LLC are independently owned and operated. www.scfsecurities.com. Note: Securities offered through SCF Securities Inc, Investment Advisory Services offered through SCF Investment Advisors, Inc. This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results.  Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.

[1] https://www.acadiainsurance.com/5-types-of-property-and-casualty-insurance-a-small-business-should-consider/

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