Just because you bought a commercial insurance policy does not mean all aspects of your business are protected. There is more to your business than the building and equipment that needs to be covered if you want to be safe. Consider the following options to help keep your business up and running when a problem arises.
Error and Omission Coverage
Error and omission coverage may also be called professional liability insurance. It covers you anytime a client or customer sues you because of the work you did or didn’t do. For example, if you have a pool cleaning business and you forgot to close the valve that backwashes the filter, and the client was gone for a few days and the pool emptied, then you could be sued for any flooding damage to the landscaping and also for any damage done to the pool because it dried out in the sun. Unless you have error and omission coverage, you are going to have to pay for all damages on your own.
Cyber insurance
In this new age of technology, you need to be sure your company is protected from anything that can go wrong in the virtual world too. If you have a website, you are opening your company up to a whole host of problems from data breaches to cyber theft. To protect you financially from any type of cyber crime, ask to have cyber insurance added to your policy. As an added benefit, this type of coverage gives your customers an added sense of security so they will be more willing to work with you.
Credit Insurance
If you extend credit to your customers, you are taking a risk. While you can always take the bad debt off your income for tax purposes, you will still be out the money for the product you bought to sell or the wages you paid to get the job done. If it is just one customer, it will not make much of a difference, but when you have many customers that have not paid their accounts, it can add up to a hefty sum. This is where credit insurance comes into play. While you may not receive all the money have spent, you will receive a portion of it. In addition, this coverage may help you with the debt collection process.
Do not assume that your policy covers everything you need to remain financially solvent. Talk with an agent, such as those at Insurance Unlimited of Missoula, and make sure to customize the policy to your business. Now is the time to think of all the “what ifs” and be sure that you are covered, just in case. It could save your business.
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