When was the last time you looked over your Business Insurance Policy / Commercial Liability Insurance? Has your coverage expanded alongside with your business? Do you know what is excluded from your coverage? Don’t wait until you have a claim to find out if your insurance was enough.
Types of Business Insurance:
Workers Compensation Part 1
Every state implements a unique set of workers’ compensation laws which each employer must follow. These regulations are intended to confirm that employers provide cost coverage for work related injures, regardless of negligence, which also include:
- Medical expenses
- Portion of lost wages
Some employee coverage examples include injuries resulting from lifting heavy objects, slip and fall, and other injuries caused by occupational hazards. However, workers compensation will not cover employees if they are injured on a non-work related injury.
Moreover, coverage is extended to your business if you were being sued by an employee for injury or lost wages, even though you complied with state law. Employees will still be able to sue for items outside of workers compensation protection, but some companies include Employers Liability Insurance in their policies, covering court costs and legal fees if such a lawsuit should arise.
Employers Liability Insurance Part 2
This type of insurance extends upon the state mandated workers compensation coverage, providing the business owner protection if their company is alleged for an employee’s injury or illness. Both cover work related injuries as listed in Part 1 above but also include:
- Employee Legal Liability
- Legal Defense Costs
- Judgments and damages awarded
- Settlement Offers
- Court related expenses
It is important to understand that an employee suing an employer directly is only one type of lawsuit covered by employer liability insurance. There are number of other types of legal action that can be taken against you or your company which include:
- Third-party-over action lawsuit – an action type in which an injured employee sues a third party for contributing to the employees injury. The third party company then turns around and sues the injured employees company.
- Loss of consortium lawsuits – This type of claim is usually between a married couple in which the spouse of the employee is not able to engage in intercourse due to their work-related injury.
- Dual-capacity lawsuits – employees suing an employer under negligence for a workplace injury caused in some capacity outside of being an employer. An example would be a manufacture’s product injuring an employee in which they then sue the company as an employer and a manufacturer.
- Consequential bodily injury lawsuits – An employees work related accident or illness affects a family member as a result, mental injuries are often alleged.
Professional Liability Insurance
More commonly referred to as errors and omissions insurance covers fiscal damages due to improper service. Some businesses that benefit from coverage include but are not limited to law firms, accounting, notary, real estate, as well as technology related businesses.
Business property insurance
Better known as Commercial Property Insurance, it protects a physical location and the equipment essential for a business to operate. This plan also protects your physical business location regardless of if you own or rent. Some items that would be covered for either replacement or repair include:
- Personal Property (located at your business)
- Equipment and Tools (utilized for your business)
- Inventory (located in your office or warehouse)
- Accounts receivable (essential documents)
- Outdoor landscaping, wall or fencing
Property insurance also covers:
- Fire damage
- Customer injuries
- Lost Income
- Not able to operate your business because of a covered loss.
Employment Practices Liability (EPLI)
Employers are vulnerable for lawsuits throughout the employee cycle process, from entrance to exit interview. As a result, it is essential for companies to have sufficient coverage in order to defend against employment liability accusations, such as, but not limited to:
- Discrimination (based on race, age, gender, sexual orientation, disability, etc.)
- Wrongful Termination
- Wage / Hour claims