Frequently Asked Questions About
Commercial General Liability Insurance
How much does commercial insurance cost?
Costs can vary widely based on industry and are also determined by zip code and often payroll and/or gross sales. Request a free quote to get an exact number.
What kind of business insurance do I need?
Most business owners need General Liability Insurance at the very least. If you have any non-owner employees, you will need workers compensation insurance too.
What is a Certificate of Insurance?
A Certificate of Insurance is proof of coverage. It lists the type and amount of liability coverage you have and other policy information when a third party requests it.
Is business insurance tax deductible?
Yes. you can deduct the cost of commercial insurance premiums. The IRS considers insurance a cost of doing business as long it benefits the business & serves a business purpose.
Cyber Liability Insurance
Cyber Liability Insurance. What is "Cyber Liability?" Any personal data that you keep on clients, donors, vendors or employees over the past five years or so can be at risk. Every name, address, date of birth, social security number, credit card information, health data and other identifying data is considered "a record." Every data breach costs an average of roughly $214 per record (as of 2017) to resolve. The average loss is about 20,000 "records." At $214 per record that's a $420,000 average loss.
It's important to understand that your Commercial General Liability (CGL) policy does not cover data breaches. You will need cyber liability insurance to protect your data.
Cyber liability insurance protects your data from unauthorized use with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
What Is Cyber Liability Insurance?
Cyber liability insurance covers liability which arises out of unauthorized access to or unauthorized use of electronic data or software which is stored, operated and used by your company. Basically, it covers data theft and the spreading of viruses. It is important to note that it covers negligence, error or omission associated with data and software use as well. For instance, if an employee of yours sends the personal information of a client to another client's email accidentally, the policy will cover the error.
Cyber Liability Insurance Protections
It is natural to ask yourself what the difference between cyber liability and traditional liability coverage is. It comes from the fact that the traditional insurance covers only tangible assets if the policy offers business property coverage. For example, with a traditional policy, you will be covered against loss of documents due to negligence, error or omission. These are typically physical documents stored in your office. Any client data which you store in an electronic database is not covered by a traditional policy.
The main item covered by a cyber liability insurance policy is network privacy. It protects you in case a client or a member of the public has suffered loss or damage due to your inability to protect sensitive data stored on your network. The issue typically arises from data thefts and leaks. Network security is covered as well. The policy will kick in to cover your liability in case there is a data breach or users are unable to access the data which they are entitled to.
One of the latest additions to this type of insurance is the electronic media coverage. It covers you in case of defamation, libel, and slander, breach of confidentiality, invasion of privacy or copyright infringement arising out of the publication of electronic data on the web. Usually, all types of websites including the social media are covered.
Overall, cyber liability insurance coverage is quite useful to all businesses which keep and use electronic databases and software utilizing private data. The available policies are highly customizable to meet the needs of the particular company. No matter whether you have a large company, run an online store or operate a small bike shop, you will find a cover which matches your needs and budget as well.
Why Your Company Needs Data Breach Insurance
cyber liability insurance is a stand-alone policy that is designed to protect businesses against such attacks and the cost and penalties incurred during the whole process:
Penalties and Investigation Costs - If the data related to the credit information of your customers is lost to a hacker then in that case your business could be facing severe penalties by law enforcement authorities. Under the agreement of merchant services, a business would be responsible for paying the investigation cost, reassurance cost of credit card and the fraud carried out on stolen credit cards. These costs can reach thousands of dollars even for a small and medium sized business. Cyber liability insurance covers you against those penalties and costs.
Cost Of Rebuilding A Reputation - A company's reputation is its most valuable asset. A breach of a company's electronic network can harm its reputation which may result in decreased sales. Insurance covers the cost of hiring a PR firm to restore the company's image in the minds of customers and also compensates the firm for the loss that the company has faced because of a cyber attack. Some the largest and most damaging data breaches are listed here:
- Adobe Systems
- Dun & Bradstreet
- Home Depot
- JP Morgan Chase
- Neiman Marcus
If it can happen to the massive companies with millions of dollars to spend on data protection, it can happen to your small business too. And small business owners do not have the deep pockets to weather the storm of a huge reputation hit after a data breach - like large corporations do.
Risk Management Services - Big business firms already have a risk department that works on reducing the risks faced by the business, so that the probability of such an event can be reduced. But small and medium sized businesses mostly do not have a proper risk management team. By purchasing cyber liability insurance, your IT related risks would be assessed by your insurer in order to accurately price the policy. This assessment report can also shed light on how you can better manage your cyber related risks without really having an in-house risk management department.
Compensation for Interruption Caused by Cyber Attacks - You may be thinking that a cyber attack may temporarily halt your business activity, so it would be covered by business interruption insurance; however a business interruption only covers your business when a damage to physical property occurs. In case of damage to your networking systems, business interruption insurance will not cover you. Cyber liability needs to be purchased in order to be compensated for the income lost due to cyber attack.
Data Breach Insurance
A data breach could destroy your business reputation and everything you've worked for in your business. This is why it's important for you to find the right cyber liability insurance policy to protect your company - regardless of its size.
Small Business Economic Data & Insurance Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. Maybe you want to contribute to the economic growth of your community. Whatever the reason is, if you're thinking about starting a small business, it's important to understand pertinent information relating to small businesses in the United States; namely economic information and insurance regulations. After all, if you want your small business to succeed, you have to understand the economic trends organizations of a similar size in your area.
Likewise, you want to ensure that your small business is well protected with the right business insurance and that you are in compliance with the rules and regulations that pertain to commercial insurance in your region.
Read up on economic statistics and insurance information that relates to small business owners in the United States.
Small Business Economic Data In The United States
Here's a look at some information that was compiled by the Small Business Association (SBA) regarding the economic data that pertains to small businesses in the United States:
- In 2015, small businesses in the United States employed an estimated 58.9 million American workers, or 47.5 percent of the nation's private workforce.
- Largest shares = fewer than 100 employees. The small businesses that employed 100 people or less had the largest share of employment amount small businesses.
- Employment increased by nearly 2 percent. In 2018, employment amongst small businesses increased by 1.8 percent, which is an increase of 1 percent from the prior year.
- Increase in proprietors. In 2016, the number of small business proprietors increased by 2.3 percent.
- In 2015, small businesses were responsible for creating 1.9 million net jobs. Organizations that employed 20 people or less had the largest gains, as they added an estimated 1.1 million net jobs.
- There were 5.7 million loans that were value less than $100,000 issued by lenders in the United States in 2016. These loans were issued under the Community Reinvestment Act.
- Small business owners that were self-employed at the incorporated businesses that they owned reported a median income of $50,347 in 2016.
- Small business owners that were self-employed at the unincorporated businesses that they owned reported a median income of $23,060 in 2016.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage. The SBA recommends the following insurance plans for small business owners:
- Commercial Property Insurance: In the case of an unplanned disaster - fire, flood, vandalism, theft, etc. - this type of coverage will help you avoid paying for the damage out of your own pocket. Even if you rent the property, you should still carry commercial property insurance.
- Commercial Liability Insurance: In the event that a legal situation arises - a negligence lawsuit, for example - commercial liability coverage will provide financial protection. It will cover the cost of legal defense fees, court fees, and even moneys that may be awarded.
- Commercial Auto Insurance: If you operate a vehicle for any activities that are related to your business - transporting and/or delivering goods, or meeting with clients - commercial auto insurance is legally required for businesses of all sizes, including small businesses.
Additional Resources For Professional Services Insurance
Get informed about small business professional services insurance, including Professional liability, aka errors and omissions (E&O insurance), that protects your business against claims that a professional service you provided caused your client financial loss.
- Answering Service
- Attorney Lawyer
- Business Consulting
- Corporate Wellness
- Court Reporter
- Electrical Engineering
- Executive, Career & Life Coaching
- Executive Search Firm
- Expert Witness
- Financial Services
- HR Consultant
- Mediator - Arbitrator
- Medical Billing
- Music, Drama & Dance Therapy
- Project Management
- Temporary Staffing
- Tax Preparer
Let's face reality. People today are claims conscious, resulting in a significant share of malpractice lawsuits against professionals.
Liability resulting from the rendering of or the failure to render professional services is excluded in most liability coverage forms. This means that a policy covering a account's or lawyers' office will cover liability arising out of the maintenance or use of the premises, but specifically exclude liability arising out of the rendering of a professional service or the omission of such a service.
In addition to the professions in which actual physical or mental injury may be caused to clients, certain other professions are exposed to claims for malpractice.
Claims may be brought against lawyers, accountants, architects, and similar professional persons for errors or omissions in their professional capacity. Errors & Omissions insurance pays damages that might be awarded to a plaintiff alleging professional negligence.
Professional liability policies are made available to such risks, and these policies provide essentially the same protection as is afforded under the physicians, surgeons or dentists professional liability policy.
Quotes from leading small business insurance carriers including: ACE, AmTrust, Chubb, Cincinnati, CNA, Colony, Employers, Evanston, Fireman's, Foremost, Guard, Hanover, Hiscox, Liberty Mutual, LLoyd's of London, Markel, MSA, Nationwide, Penn America, Philadelphia, Prime, Progressive, Scottsdale, The Hartford, Travelers, USLI, Utica First, Western World, Zurich & others.