What You Should Know About Business Insurance
May 24, 2021
Austin is a city that is known for its unique culture. One thing all Austin business owners have in common, though, is that they need to be prepared for the unexpected. When it comes to the future of your business, few things can be as important or helpful as having a solid insurance plan in place.
In today’s society, where lawsuits and intellectual property theft have become rampant and commonplace, one could never underestimate what difference proper coverage might make when disaster strikes. The benefits don’t just stop at preventing financial losses either. Being appropriately insured also means protecting yourself from potential criminal charges if any employees misplace sensitive information on their devices while conducting work tasks related to clients’ data privacy needs.
Why is insurance essential for Austin businesses and how does it work?
Insurance is an essential component of running a successful business. It can help you protect your business, property, and personal assets from accidents or unforeseen events that could happen at any time. Insurance for an Austin company isn’t that different than insurance elsewhere–it’s crucial to make sure the right coverage is in place before it’s too late.
Some common types of business insurance include:
General liability insurance:
To protect your company against damage to the property of others or bodily injury, general liability insurance is a good idea. It can also help with lawsuits and issues arising from employees being on the premises. General Liability Insurance provides protection for any claim made by someone other than an employee that relates to physical harm or property damage caused by something you did or failed to do–in connection with business operations.
What does it cover? General Liability Insurance covers claims related to personal injury, including third-party injuries; damages due to faulty products and workmanship; advertising injuries such as libel (defamation) and slander (slander); expenses incurred while defending legal actions; fines imposed in court judgments if found guilty; etc.
Professional liability insurance
Professional liability insurance is a type of liability insurance that provides protection for you when your job involves a certain degree of professional judgment and discretion.
What is it used for? Professional liability insurance can be used in various work scenarios. Still, it generally covers situations where the person providing services or advice relies on their expertise to make decisions or deliver an opinion about something they know or do not know anything about. It helps protect against legal action taken by customers who are harmed and claims related to non-malicious mistakes made by the worker in question.
Professional Liability Insurance protects individuals from lawsuits filed on grounds such as breach of contract, malpractice (medical), discrimination, sexual harassment, etc. A license may also be required depending on what service you are providing.
- Employment Practices Liability Insurance (EPLI): covers a company or organization for acts committed by employees during their employment. EPLI is an umbrella term to describe employment practices liability policies that protect businesses from claims related to wrongful termination, sexual harassment, discrimination, or violations of wage and hour laws.
- Directors and Officers (D&O) Coverage: D&O policy helps protect directors and officers who are sued because they made decisions in good faith while overseeing company operations.
- Errors and Omissions Coverage: E&O policies protect professionals such as accountants and lawyers for losses caused by errors or omissions in professional services.
Commercial auto insurance
Commercial auto insurance is an essential consideration for any company with vehicles in its fleet. It generally covers incidents that involve the business’ cars, vans, and trucks when they are being used to transport goods or people.
Insurance can also cover damages to a rented vehicle and personal injury protection, which protects individuals from financial difficulties after an accident involving one of your company’s vehicles has caused physical harm to them.
Commercial Auto Insurance isn’t just for businesses with many employees; it’s also available for smaller companies who need coverage on only one car or truck.
If you are a business owner, it is vital to have commercial property insurance to protect your assets from unforeseen disasters. When you invest in this type of coverage, your company will be safeguarded against damages that result from fire, theft, or other perils.
The most important thing to know about property insurance for your business is that you can’t protect your company from every possible risk.
Business interruption coverage
Business interruption insurance is a type of coverage that can reimburse for lost income and other financial damages when a business has been interrupted due to an insured event. Business interruption coverage is valuable because it can help a company get back on its feet after an event that would otherwise have been devastating.
Businesses in Austin who invest in this type of insurance are protected from any unexpected events that could cripple their company’s financial stability for years to come.
To stay competitive and profitable, businesses must be willing to spend money on necessary commercial property insurance policies through their lifespan as a business entity. Business owners should make sure they know what risks may arise when investing in these types of coverages so they can better protect themselves at all times!
The internet has become an integral part of our lives. It’s how we communicate, it’s how we shop, and it’s where most people get their news. But with this increased reliance on the web comes a new set of risks that companies have to plan for: cyber liability insurance. Cybersecurity breaches happen every day. From small-scale hacks to significant data breaches like Equifax, internet security is a genuine concern for all businesses, large and small.
What is Cybersecurity Protection?
Cyber liability insurance policies help protect businesses from the consequences of cyberattacks. To be covered, a company must have some form of internet presence as well as sensitive data and intellectual property that could be compromised or stolen by an outside party in a “cyberattack.” When deciding which type of cybersecurity protection to purchase, companies should weigh their organization’s risk against the potential severity of a breach or attack.
Businesses need to make sure they have the coverage required in case of a breach. A cyber liability insurance policy will help them mitigate any risks that could arise from malicious hacking, data security breaches, and other related issues. In addition, business owners should be on the lookout for coverages like network intrusion detection or internet-based crime protection when deciding what types of policies are essential to their business success!
How to find the right agent for your business insurance?
You should be prepared for the worst to happen. Businesses need insurance just like any other company, and you must find an insurer who will work closely with your business to understand its needs.
The first step in finding a good business insurance provider is asking yourself one simple question: what are my goals? Some companies want coverage for just general liability, while others want insurance for everything from property damage to a cyber breach. Answering this question will help you find the right type of business insurance partner you are most comfortable with.
The second step for finding a solid business insurance provider is to assess your company’s needs. Independent agents like Watkins Insurance Group are here to help evaluate your company’s insurance needs. The risks you face as a business owner will dictate the type of insurance coverage you need. Your independent agent can help you understand your needs and protect your company from potential risks.
Whatever type of company you own or operate and whatever level of risk it faces daily, whether it’s purchasing retail goods from China online, offering life coaching services, or engineering new technologies, your business insurance agent should create a tailored insurance portfolio for you.
For example, suppose there is any chance that employees might be hurt on the job or in traffic accidents while driving for work purposes. In that case, workers’ compensation and liability/property damage are important considerations to have covered with an employer policy.
Finally, once you’ve done some research and have an idea of the type of company you want to work with, it’s crucial to get a comprehensive business insurance portfolio review. Business insurance can vary from one provider to another. Knowing that your agent is looking out for your best interests will help make sense of all these business insurance options.
The benefits of having a strong relationship with your insurance agent
There are numerous benefits to building a long-term relationship with your business insurance agent. One of them is that they know you and have more information about your company than they would if it were their first interaction with you. This can be helpful when reviewing your coverage options, recommending additional products, or providing guidance based on the unique needs of a particular industry sector.
Another benefit is that an agent will act as your advocate should there be any confusion over claims coverage, audits, rates, etc. Your business insurance agent will work with the insurance company to get things sorted out quickly, so no one has to wait for anything!
Common misconceptions about business insurance coverage
Some of the most common misconceptions are that a business needs only liability, workers compensation, and property coverage; misunderstanding what is covered by those primary coverages; or assuming that all businesses must purchase unique products for specific industry sectors.
An insurance agent can answer any questions you have about your insurance coverages, as well as other potential risks to consider (eg., product liability). Additionally, if you are considering adding new lines of coverage due to changes in your operations or scope of work, an insurance agent can review which options would be best suited for your company.
Finding the right insurance agency for you can be challenging, but it’s worth taking time to find one that provides service and coverage tailored specifically to your needs. If you need help finding the right insurance partner for your Austin-based business, contact Watkins Insurance Group today! We have been providing comprehensive risk management solutions since 1949. We’re here to help.
Descriptions of insurance products and packages are meant to offer general ideas only, are necessarily brief, and are subject to policy provisions, limits, deductibles, exclusions, and conditions that can only be expressed in the policy itself. In the event of a conflict, the terms and conditions of your policy prevail. This information is provided solely as an insurance risk management tool. It is provided with the understanding that we are not providing advice or any other professional services. We shall have no liability to any person or entity with respect to any loss or damages alleged to have been caused, directly or indirectly, by the use of this information.