How Working With A Licensed Insurance Agent Can Help Prevent Loss

Often small to medium-sized businesses have insurance needs that are not covered by the basic property, liability, auto and worker’s compensation coverage policies they have in place. Buying business insurance is necessary but buying insurance can seem confusing at times.

You may not know how much coverage you need or even what some of the different insurance lingoes mean. “Sadly, businesses often do not discover these coverage gaps until the claim occurs,” Holloway says. “Businesses work under the premise everything is covered with their existing policies. However, in the world of insurance, there is usually no way to cover everything.”

You could buy insurance on your own, but a better idea is to put the services of a skilled and experienced business insurance agent to work for you. One of the best ways to ensure gaps are filled and protect your business is by building a strong relationship with a licensed insurance agent.

“It is essential to have the help of an insurance agent who can monitor the coverage to protect your business interests, your assets, and your future,” Holloway says.

What does a basic insurance coverage policy provide?

Basic policies start with general liability insurance, a foundational coverage which provides damages and defense if either you, your employees, or your products or services cause (or are alleged to have caused) bodily injury or property damage to a third party.

The policy pays damages your business is found liable for, up to the policy limits, in addition to attorney fees and other legal defense expenses.

Property policies provide coverage for damage from fire, hail, windstorms, burglary, and theft and other common perils that occur to your building and any personal property used in your business.

When running your business out of a home, you should be aware that your homeowner’s policy typically excludes coverage for any business operations conducted in a home. You need separate coverage for business operations.

Auto insurance policies will protect any vehicles that your company owns, leases or maintains. Coverage includes liability and physical damage, in addition to medical coverage, uninsured and underinsured and no-fault coverage, which can be added to the policy by endorsement.

Worker’s compensation insurance policies cover the business’s liability under the state worker’s compensation laws, giving benefits to employees for accidental injuries they sustain out of the course of their employment.

Some risks that are typically excluded by the basic coverages; one example would be business interruption or business income insurance, this protects earnings until you can open your doors again following a loss that shuts down your company for a period.

Business interruption or business income insurance provides coverage for ongoing expenses even though you are not able to generate income. There are variations, so it is good to work with your agent, who can tailor this policy to meet your unique needs.

Other examples are a professional liability or errors and omissions (E&O) policy; employment practices liability (EPLI) policy; cyber liability and directors and officers (D&O) coverage.

The best way to identify potential gaps in coverage, work with your agent to discuss your insurance package and the policy coverages you need specifically for you and your business.

Sit down with your agent and go through a checklist to explain the coverage you have and find the gaps that might exist based on your current coverage. Your agent can advise you of gaps that are critical and need to be addressed versus those that don’t pertain to your company.

Having your agent help, you may be able to mitigate risk by easily eliminating a practice that does not offer any valuable benefit to your company. 

Key factors are having these conversations on a regular basis with your agent. Also, making sure that as your needs change, your coverage adjusts accordingly. When you have done your due diligence and found an agent you can work with, it should give you peace of mind your business and future are well protected with the proper coverages and amounts.

You can reach Hansi Holloway to help with your insurance needs at (706) 410-2335.