Is Business Insurance Too Complicated?
Business insurance: mention the topic and count down the seconds until yawns form and eyes glass over. For some, commercial insurance is just slightly more interesting than reading the phone book or memorizing the periodic table of elements.
Perhaps that’s because business insurance seems complicated, or because we suspect we’ll never really need it. Talking about what might occur, such as a catastrophe requiring financial assistance, rather than what is likely to occur (business as usual), can seem so abstract, such a waste of time.
3 Things Needed for Entrepreneurial Peace of Mind
Ah, but think of it this way: wouldn’t it be great to have the peace of mind of knowing that you are financially covered against many of the uncertainties life can throw at you? Isn’t that better than the nagging feeling that you may be unprotected against some unknown liability for which you failed to get the needed business insurance protection?
To get to that blissful entrepreneurial state of mind, you need 3 simple things, none of which require yoga classes or the help of a Zen master:
- Knowledge of basic business insurance terms and types of protection
- A trustworthy and capable independent business insurance advisor
- Decisiveness
Get all three, and in no time you’ll be covered with the right business insurance protection. Whether your business is in Reading, PA, Berks County, Philadelphia, Lancaster, Allentown, or beyond, every business owner who meets those 3 simple criteria sleep better at night.
Buiding Your Business Insurance Knowledge: 14 Terms You Need to Know
While we can’t cover everything you need to know in this short post, we can get you started by presenting 14 key commercial insurance terms, each with a brief definition, in alphabetical order. Read over them and then jot down some follow up questions for your independent insurance agent. Once you have solidified your knowledge, decisiveness will follow. Take action for the good of your business, your employees, and your family.
- Bonding
A guarantee of performance required for many businesses, and often by general contractors, janitorial companies, and businesses with government contracts
- Broker
An independent insurance agent who represents multiple insurance companies, and is therefore in a better position to find the right business insurance at the right price vs. a single-company insurance salesman
- Business Interruption Insurance
Coverage to replace lost sales and income suffered due to a covered loss
- Direct Writer
The opposite of a broker, a direct writer represents a single insurance company
- Disability Insurance
Insurance that pays a fixed monthly benefit if one becomes disabled and unable to perform their regular job
- Employment Practices Liability Insurance
Coverage that protects the business from being sued due to the actions of employees, such as discrimination, abuse, sexual harrassment or wrongful termination
- Errors and Omissions Liability Coverage
Protection for accountants, consultants, and other business professionals against damages due to an error or omission in work performed
- General Liability Insurance
Business insurance protection against accidents of bodily injury or property damage to other persons or property
- Key Person Insurance
Life insurance taken out against a key person, typically an executive or other key person, with the business itself as the beneficiary
- Package Policy
A business insurance policy combining several types of protection in one package
- Property Insurance
Protects equipment and other physical property from losses due to fire, theft, and other incidents, and is available in the form of “named peril” and “all risk” versions
- Replacement Cost Insurance
Insures the business for the full current replacement cost
- Umbrella Coverage
Liability insurance protection for amounts exceeding coverage on main policies, in the event a lawsuit exceeds underlying limits of coverage
- Worker’s Compensation Insurance
Business insurance for medical, rehab, and lost wages for employees who are injured at work (usually state mandated)
There you have it. 14 simple business insurance terms that probably have you wondering what coverage you are missing, and ready to contact your independent insurance agent. Do that, and then get ready to be decisive. You’re almost there.
How to Get Help with Your Business Insurance
Need help in figuring out the right commercial insurance protection for your Reading PA, Berks County, Philadelphia, Allentown, or Lancaster County business? Call us today at (800) 947-1270 for a free consultation, or click to contact us.
