The Specialty Business Risks Insurance Guide
Business Risks Insurance. This guide provides information on excess, surplus and specialty lines small business insurance policies and risks.
Here you can find basic descriptions of the specific industry risks or specialty coverage types available for Business Risks Insurance.
For certain types of small businesses, particularly new ones - it is often very hard to know what types of commercial insurance is needed, what the risks are that should be covered - and where to find coverage.
We wanted to provide reference for specialty commercial insurance to help our readers get a better understanding of Business Risks Insurance policies they might need to do business.
Learn about Specialty Business Risks Insurance to better understand common risks, exposures and the types of commercial insurance coverage available to protect your small business and it's operations.
Business Risks Insurance Types
Click on the links below to learn more about Specialty Business Risks Insurance types and coverages:
- Actuaries Professional Liability Insurance
- Advertising Agency Liability Insurance
- American Expatriates Insurance
- Answering Services Errors And Omissions Insurance
- Associations Professional Liability Insurance
- Business Legal Expense Insurance
- Business Travel Accident Insurance
- Commercial Credit Insurance
- Cyber Liability Insurance
- Directors And Officers Liability Insurance
- Employee Benefit Plans Liability Insurance
- Employee Staffing Services Insurance
- Employment-Related Practices Liability
- Global Medical Insurance
- Home Business Insurance
- Identity Theft Liability Insurance
- International Insurance
- Internet Liability Insurance
- Kidnap And Ransom Insurance
- Limited Partnership Liability Insurance
- Liquor Liability For Hosts Insurance
- Owners And Contractors Protective Liability Insurance
- Political Risk Insurance?
- Privacy Insurance
- Trustees And Fiduciaries Errors And Omissions (ERISA) Insurance
What Is Actuaries Professional Liability Insurance?
Actuaries were once associated with only insurance companies. They are now recognized as independent advisors whose expertise is used by many different businesses. Independent actuarial firms provide services such as outsourcing for insurance carriers that need temporary assistance on certain projects. They also offer advice to financial entities that attempt to determine the future value of potential takeover targets. Some perform analyses for insurance departments. The type(s) of actuarial service(s) the risk provides determines its underwriting acceptability and the premium to charge.
What Is Advertising Agency Liability Insurance?
This insurance covers claims brought that allege libel, slander, defamation, infringement of copyright, title or slogan, piracy, unfair competition, or misappropriation of ideas, and invasion of the rights of privacy by an advertising agency. It also covers the cost of investigating such claims and defending against the legal actions.
What Is American Expatriates Insurance?
United States workers on foreign assignments need property insurance coverage to protect their personal property from loss or damage. They also need liability insurance coverage to protect them against claims and/or suits due to allegations of injuries. This blanket coverage is available to corporations with multiple expatriate exposures. The master policy is issued to the corporation and certificates are provided to individual employees. The employer purchases a base layer of property and liability coverage for its expatriate employees. The employee can increase these base limits to fit his or her needs for an additional fee. Each plan covers personal liability and both scheduled and unscheduled personal property.
What Is Answering Services Errors And Omissions Insurance?
Answering and message centers serve businesses, professionals, contractors, and service companies that must have their calls answered and messages taken around the clock. They may also provide voice mail, fax messaging, printing, photocopying, and similar office services. This coverage insures businesses for injuries alleged to have occurred because of negligent acts, errors, or omissions in performing answering services for others.
What Is Associations Professional Liability Insurance?
This insurance covers nonprofit associations' professional liability exposures. The policy can include directors and officers liability that is designed specifically for nonprofit associations. The insuring agreement includes as named insureds all directors, officers, employees, committee chairpersons, and members, and any other association member while acting on the association's behalf.
What Is Business Legal Expense Insurance?
This coverage protects business owners against certain types of unforeseen legal expenses. An important limitation is that it covers only legal expenses that qualify as a deductible expense on the insured's tax form. It is not intended to pick up legal expenses that the insured's general liability insurance covers. Examples include preparing and reviewing contracts, forms, and documents; litigating contract claims; responding to consumer legal actions; advising on labor problems; and even certain white-collar criminal charges. It reimburses legal expenses for defense costs, legal consultation, and plaintiff actions. Pricing is based on the types of expenses covered and the limits purchased.
What Is Business Travel Accident Insurance?
This is travel protection insurance for business executives, and employees. Full- and part-time employees and volunteers who work for nonprofit groups can also be covered. All plans cover accidental death and dismemberment, emergency evacuation, and repatriation of remains. Most plans also include emergency medical assistance coverage. Coverage plans may be worldwide or limited to only specifically named countries.
What Is Commercial Credit Insurance?
Commercial credit insurance covers the insured's loss when a credit customer becomes insolvent or refuses to pay its account. Manufacturers, wholesalers, distributors, and certain service businesses are eligible. Retail operations are not eligible.
What Is Cyber Liability Insurance?
Commercial and personal lines carriers restrict coverage related to online activities. As a result, separate cyber liability coverage forms and endorsements are necessary to cover exposures such as libel, slander, infringement of copyright, and invasion of privacy. Coverage is also needed when hackers infiltrate a company's computer system and steal valuable third-party information, such as social security numbers, credit card numbers, and health information. Many companies offer cyber liability coverage but forms are not standardized. Some companies include first party coverage for damage to computer systems because of hacking and other types of viruses.
What Is Directors And Officers Liability Insurance?
This coverage protects directors and officers of a corporation against claims that allege injury caused by their negligent acts, errors, or omissions while acting in their corporate capacities. It also indemnifies corporations for expenses they incur to defend such lawsuits. The market for this coverage is expanding and addresses all sizes of corporations. Some companies cover discrimination, wrongful termination, and sexual harassment.
What Is Employee Benefit Plans Liability Insurance?
This insurance covers the insured employer against claims made by its current or former employees due to damages caused by negligent acts, errors, or omissions in the employers administration of employee benefit programs. It covers claims resulting from the giving of incorrect advice concerning an employee's health care or pension plan or for failing to enroll employees under a benefit program. It usually excludes all fiduciary responsibility. It may be written on a separate policy or be endorsed to the employer's commercial general liability policy.
What Is Employee Staffing Services Insurance?
Staffing services furnish employees to businesses on a contract basis. They are responsible for the employees' payroll, employee benefits, workers compensation, and other human resource-related functions. Both general liability and professional liability are written in the same form. Third-party fidelity coverage, employment-related practices liability, and workers compensation coverage may also be provided.
What Is Employment-Related Practices Liability Insurance?
Federal, state, and local regulations prohibit a number of employment-related practices. This insurance covers the insured if it or any of its employees are accused of any of the prohibited practices. The coverage provides a list of the federal regulations that can be cited in a claim such as age, race, gender, or disability discrimination. It also covers allegations of harassment and retaliation.
What Is Global Medical Insurance?
Accident/medical/sickness coverage for diplomats and world travelers can be purchased by foreign nationals visiting the U.S. and U.S. citizens who travel abroad. It is long-term coverage for individuals who do not have adequate coverage from an insurer in their home country. Several different accident and sickness plans are available. Each has its own deductible and coinsurance conditions. Each automatically includes provisions for emergency medical evacuation, return of bodies, emergency family reunions, and local ambulance expenses. AD&D benefits are also available, as are optional coverages for hazardous sports such as skiing, scuba and sky diving, motorcycle/motorbike racing, and bungee jumping.
What Is Home Business Insurance?
Most homeowners coverage forms and policies include limited protection for certain in-home businesses. This coverage is often inadequate for many types of home-based businesses. This coverage insures home-based businesses that are beyond the scope of standard homeowners forms.
What Is Identity Theft Liability Insurance?
Identity theft liability is an evolving coverage. The most basic form covers liability imposed on a business because it failed to adequately protect certain vital information that its customers supplied. This information is such that its theft can allow the customers' identity to be stolen. Many carriers are expanding beyond this basic coverage to provide loss control assistance to prevent such losses and intense case management activities following a security breach in an attempt to lessen the impact of any loss.
What Is International Insurance?
Global account underwriting is tied to the growth in multinational corporations. Multinational businesses need a package of domestic and foreign insurance coverages combined under a single master program. A number of major U.S. insurers have large international networks of facilities that can provide insurance coverage in almost any country in the world for U.S. businesses that conduct operations overseas and/or export products overseas.
What Is Internet Liability Insurance?
Internet liability is the most rapidly changing area of liability exposure today. The growth in the number of persons who use the Internet regularly has caused most businesses to promote and market their products and services online. These companies have home pages and many communicate with others via email, chat lines, blogs, social media, and more. Liability coverages and exclusions that apply to advertising injury, libel, slander, infringement of copyright, and trademark are being revised to reflect the changing conditions of online communication. A few insurers offer a package of coverages designed to protect businesses that provide online services to their customers and subscribers.
What Is Kidnap And Ransom Insurance?
Kidnap, ransom, and extortion coverage has become more common as businesses expand their international outreach and send executives and key employees around the world. While ISO and SFAA have developed endorsements and coverage forms, restrictions and availability vary by company. One unusual aspect of this coverage is that the insured cannot acknowledge that they have the coverage because such acknowledgement could make them more of a target.
What Is Limited Partnership Liability Insurance?
A limited partnership's general partners are the people and/or companies responsible for managing and running the partnership's operation. They can be sued for mismanagement, negligence, or waste of partnership assets. However, the greatest concern to general partners is probably the sizeable lawsuits brought against them by limited partners (investors) that allege violation of federal security statutes and "Blue Sky" laws. Limited partnership liability coverage insures general partners, both individual and company, the directors and officers of company general partners, and limited partners for alleged wrongful acts. It can be extended to include as insureds the affiliates of general partners and syndicators. The policy covers violations of federal security statutes and "Blue Sky" laws. Any form of new or existing private or public limited partnership is eligible for coverage.
What Is Liquor Liability For Hosts Insurance?
A few markets write host liquor liability insurance to protect the possible exposure of individuals or business firms against liability for their use of liquor for business and non-business entertainment. Commercial general liability policies do not exclude coverage for claims that arise out of the use of liquor by firms that do not manufacture, sell, distribute, or serve alcoholic beverages. However, this coverage can be very useful when the named insured and the insurance company disagree about whether coverage applies at events when an accident that involves alcohol occurs.
What Is Owners And Contractors Protective Liability Insurance?
The OCP policy provides liability coverage for a named insured who is sued for injuries related to the actions of a contractor working on his or her behalf. The contractor purchases the coverage but the owner/contractor for whom the contractor works is the named insured. Coverage is limited to bodily injury or property damage that results from operations of a contractor while working for the named insured. Coverage is limited to a specific project or contract and ends when the project is complete or the terms of the contract are fulfilled.
What Is Political Risk Insurance?
Political turmoil throughout the world makes United States investors and business firms aware of the threat that their assets in foreign nations where they do business may be expropriated. A firm may be exposed to loss from any of three broad categories of political risk: seizure of assets, currency inconvertibility, and interference with contractual performance. Confiscation, expropriation, nationalization, deprivation and, in some cases, terrorist and war risk coverages may be written under political risk insurance programs.
What Is Privacy Insurance?
This coverage protects the insured when confidential information belonging to clients, employees or vendors is breached because of an alleged error on the insured's part. Coverage is provided for both defense and indemnification. Coverage also includes the cost to notify affected individuals.
What Is Trustees And Fiduciaries Errors And Omissions (ERISA) Insurance?
Passage of the Employee Retirement Income Security Act of 1974 (ERISA) brought about one of the most significant changes in the insurance business. In addition to providing guidelines for the federal government to regulate private pension plans, it also greatly broadened the responsibilities of trustees and fiduciaries who directly or indirectly exercise control over pensions or employee benefits that fall under the act. Certain provisions of the act established new standards for prudent action by fiduciaries. The act permits purchasing insurance to protect the personal liability of trustees or fiduciaries for their negligent acts, errors, or omissions. This insurance may be purchased using assets of the plan or trust to protect the plan and its fiduciaries as long as the insurer has recourse against the individual trustee.
Business Risks Insurance - The Bottom Line
We hope that the Business Risks Insurance helps you to better understand the some of the specialty small business commercial insurance policies available for your business. To find out what types of coverage your unique business needs, speak to a professional commercial broker with experience in insuring businesses like yours.
Specialty Small Business Insurance Guide By Industry, Risk Or Policy Type
- Accident And Sickness / AD&D
- Aircraft And Airports
- Amusement Parks And Rides
- Animals And Birds
- Arts And Antiques
- Auctions And Farmers Markets
- Automobiles, Trucks And Recreational Vehicles
- Business Risks
- Clubs And Leisure Time Activities
- Community Service Organizations
- Dealers And Distributors
- Directors And Officers Liability
- Drugs And Alcohol
- Employee Protection
- Environmental Risks
- Errors And Omissions
- Farm Risks
- Financial Institutions And Services
- Firearm And Shooting
- Food And Restaurants
- Hazardous Materials
- Health Risks
- Hotels And Motels
- Inland Marine
- Insurance Services
- Machinery And Tools
- Medical Centers And Clinics
- Medical Malpractice
- Mobile And Modular Homes
- Motorcycle Risks
- Natural Disasters
- Nonprofit Agencies
- Oil And Chemical
- Physical Damage
- Prize Indemnification
- Product Liability
- Real Estate
- Retail Stores
- Schools And Education
- Security Risks And Equipment
- Service Businesses
- Sports And Hobbies
- Substandard Risks
- Weather Related
- Workers Comp
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
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.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.