What Insurance Coverage Do Entrepreneurs Need?
Jun 30, 2020
Find out what insurance coverages you need as an entrepreneur.
No matter what type of business you own, you need insurance coverage to protect your hard work as an Entrepreneur. Having the right insurance coverages does more than just protect your business from financial loss; it also shows customers and investors that you are a prudent, trustworthy Entrepreneur. Many investors and vendors also require you to have insurance, making coverage necessary for the growth of your business as well.
Who Needs Entrepreneurs Insurance Coverage?
Any business owners and Entrepreneurs, including home-based business owners, should consider this coverage.
What Insurance Coverages Do Entrepreneurs Usually Need?
Commercial General Liability (CGL)
Commercial General Liability Insurance can provide protection against
- Bodily Injury,
- Property Damage,
- Personal and Advertising Injury,
- Medical Payments,
- Tenants Legal Liability
- And in some cases can include Employers Liability and Non-Owned Automobile Liability coverages.
Having CGL Insurance can cover defense and damages against a lawsuit if your business's products or services cause or are alleged to have caused bodily injury or property damage to others. All Entrepreneurs, including home-based Entrepreneurs, should be carrying a CGL policy as it can cover against a lawsuit arising from property or bodily damage while a client is visiting your home office. Your home or renter's insurance may likely not cover claims related to your business. Check out our Guide for Home-Based Entrepreneurs for more information.
Professional Liability Coverage (E&O)
Professional Liability Insurance (E&O) protects your company against claims arising from failure to provide the expected service level or financial loss from wrongful acts that would not be covered under your Commercial General Liability (CGL) insurance. Business professionals and Entrepreneurs providing a service, advice or consultation - such as accountants, consultants, lawyers, architects and other professional services - can benefit from this kind of coverage.
As a growing and savvy Entrepreneur, you likely use technology to advance and streamline your business. Whether you use digital business tools, store employee and client information electronically or even use email to communicate, your business can be exposed to cyber attacks and breaches. Cyber attacks is a rapidly growing risk for Entrepreneurs, especially small and medium business owners who have less resources to bounce back if an attack does occur. Cyber Liability Insurance can provide coverage for cyber incident response costs, cybercrime including social engineering, cyber extortion, network damage, system interruption and privacy liability. Standard policies usually do not cover these risks and liabilities. Learn more about Cyber Liability Insurance and if your business is protected in a data breach.
Here Are Examples of When Insurance Coverage Can Help Protect Entrepreneurs:
You own a business that imports products from out of the country. Unfortunately, one of your products damages the property of one of your customers. Even though a different company supplied the product to you, your business is still held liable for selling them when the customer pursues legal action for damages. Your CGL Insurance is able to help cover the costs of legal fees and cost of damages.
You own a consulting business and give a client advice on managing their own business; however, this advice actually misguides them and causes your client to lose business. They pursue legal action and succeed; your Professional Liability coverage is able to cover the legal costs and damages.
One of your employees receives an email, seemingly from another employee, asking for a copy of client personal information. Your employee sends it over but it turns out to be phishing scam and your clients' privacy are ultimately compromised. Your Cyber Liability help cover the costs of damages and privacy liability.
Other Frequently Asked Questions:
How much does Entrepreneurs Insurance cost?
The cost of Entrepreneurs Insurance can vary depending on your individual business which is why it is crucial to review your insurance policy with a trusted professional to make sure your business has the right coverages. Some factors that affect the price of your premium can include:
- Your product, service or industry,
- Number of employees on your team,
- Prior insurance claims history,
- Vehicles, supplies, equipment and other assets
- And so on.
As an Entrepreneur, your business is special; we couldn't agree more. Your hard work deserves to be protected. That's why, our Foxquilt team will fight for you and provide you smarter business insurance customized to fit your needs. Plus, by joining our Foxquilt community of Entrepreneurs, you can receive better buying power and even unlock group savings on your insurance premiums. Get started on a quote for insurance built for your business.
Do You Need to Have Workers' Compensation Insurance?
The laws about workers compensation vary state by state as to who is required to carry workers’ compensation coverage and who might be exempt. Learn more about your state workers' comp regulations.
What is Workers’ Compensation Insurance?
Workers' compensation insurance, also frequently known as ‘workman's comp’ insurance, is meant to compensate employees and their families for injuries or illnesses that can happen as a result of work. Learn more on how it works!
Do You Have the Right eCommerce Liability Insurance for Amazon?
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