5 Types Of Small Business Insurance You May Not Know About

Small Business Insurance Frisco TXThough small business insurance can be confusing for a business owner, it is a necessity for protecting the owners, employees, and assets of a small business.  To make matters simpler for small businesses, insurance companies offer a Business Owner’s Policy, or BOP, that combines coverage for all major property and liability insurance risks as well as many other types of additional coverage as required by each individual business.  BOPs for small businesses generally include property insurance for buildings and contents, business interruption insurance, which covers loss of income caused by a fire or other catastrophe and liability protection, which covers a business’s legal responsibility for any harm it may inadvertently cause to others.  In addition to these, other types of less-typical insurance coverage include:

1 – Errors And Omissions Insurance/Professional Liability

Some businesses provide services which can lead to them being sued by their customers, clients or patients who may claim that the business’s failure to do their job properly has injured them.  Errors and omissions, or professional liability, insurance protects a business in these situations.  The policy will cover any judgment up to the policy limit.  It even provides legal defense costs, regardless of proof of wrongdoing.

2 – Employment Practices Liability

Employment practices liability insurance can cover a small business owner, up to the policy limits, for damages for which he or she is legally liable involving employment practices like sexual harassment or wrongful termination.  In addition to paying for the judgment, this type of coverage also provides legal defense costs even when there has been no wrongdoing.

3 – Directors And Officers Liability

This liability insurance protects directors and officers against lawsuits claiming that they managed their business or nonprofit organization without proper regard for the rights of others.  The policy not only pays for judgments up to the policy limit, it also provides for legal defense costs.

4 – Key Employee Insurance

Key employee insurance is essentially life or disability insurance that can compensate a business when a key employee dies or becomes disabled, causing an adverse financial impact on the business.

5 – Umbrella Policies

An umbrella policy provides coverage over and above the limits of a business’s other liability insurance.  It provides protection when the policy limits of one of a business’s policies have been used up.  Typically, an umbrella policy might provide protection beyond general and auto liability policies; but it can also be used to provide more coverage for employment practices liability, directors and officers liability and other types of liability insurance.

If you are a small business owner, you can take the guesswork out of buying small business insurance by calling the Anthony Blackmon Agency in Frisco, TX at (469) 291-9006.  You can also visit us online at www.anthonyblackmonagency.com to find out more about us and about the insurance products we offer.

Small Business Insurance Frisco TX
Anthony Blackmon Insurance Agency
9191 Kyser Way, Suite 200
Frisco, Texas 75034
(469) 362-8484

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