Business Insurance Checklist

Writing out that yearly check to your insurance agency can be onerous

for many business owners. Fully understanding what you and your

business get in return can help ease this perceived burden. One

accident involving your delivery truck, one surprise fire, or one fall off a

ladder will surely drive home the importance and relief of holding a

well thought-out business insurance plan.

The following types of insurance are recommended to keep you, your

employees, and your business safe and up and running.

General Liability Insurance

A liability insurance policy, sometimes called Commercial General

Business Liability, protects your company’s assets. This type of policy

covers costs incurred as the result of bodily injury or property damage

to a third party as caused by you, your employees, or your

products/services. Liability insurance also covers claims of false

advertising and copyright infringement. And, worst case scenario,

general liability insurance will cover court costs and any settlement

amount should a suit against your company prove successful.

Property Insurance

If you own a building, a property insurance policy will cover the

structure, as well as its contents, from vandalism, smoke damage,

theft, etc. The covered contents must be items owned or leased by

your business, such as computers, office equipment, and inventory.

For extra security, you should ensure that business interruption

insurance is part of your property insurance policy. Business

interruption insurance will cover loss of potential income in the event

of a disaster. It is important to note that floods and earthquakes are

not covered through your general property insurance policy. Your

agent can help you decide if additional flood and earthquake coverage

is warranted.

Commercial Auto Insurance

This type of auto insurance protects your company’s vehicles. Any

vehicle that carries products, equipment, or employees is considered

a company vehicle and will be protected through this policy from

damage and collisions. If you have employees driving their own cars

for company business, your policy should include Non-Owned Auto

Liability Insurance. This will protect your company should it turn out

your employee does not have personal auto insurance or holds

inadequate coverage.

Business Owner’s Policy (BOP)

A BOP is an insurance package option for business owners.

Generally, BOPs include liability insurance, property insurance,

business interruption insurance, business vehicle insurance, and crime

insurance. You and your agent can tailor this policy based on the

specific needs of your business. This option typically costs less than

individual coverage since it rolls several policies into one.

Additional Insurance Options

Depending on the nature of your business, several additional policy

options are available for your protection. Examples of these policies

include: Professional Liability Insurance, Directors and Officers

Insurance, Data Breach Insurance, Marine Insurance, Glass Insurance,

and Rent Insurance, just to name a few. Additionally, there are several

policies specific to employees – some mandated by law.

Workers Compensation Insurance is compelled by Alabama law if

certain conditions are met. Employee Health Insurance must meet

certain standards as set forth by the federal Affordable Care Act. Your

business insurance agency can assist you in making these decisions

and ensuring your business meets all state and federal requirements.

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