Frequently Asked Commercial Insurance Broker Questions
No matter what type of business you own, you will need to have business insurance to ensure that you are fully protected in a number of different circumstances. If you're a small business owner who is just about to launch, don't limit yourself to simply buying liability insurance, because there are other events that could leave you with a huge bill. To help you understand what coverages you might need, here are the answers to some frequently asked commercial insurance questions.
What Type of Coverage Do I Need To Protect Against Malpractice Claims? -- Errors and Omissions (E&O) insurance, is a type of commercial insurance that brokers sell to businesses that want protection against lawsuits related to a failure to provide service, or a failure to provide service that had a successful outcome, such as a civil lawyer losing a case for a client. In some insurance companies, E&O insurance is known as malpractice insurance, and it provides funds to your business to mount a legal defense against suits brought about by clients and customers who accuse your company of not fulfilling an expected service.
Can I Deduct My Commercial Insurance On My Business Taxes? -- Yes, as long as you are paying for coverage directly related to the operation and normal conduct of your business, such as liability insurance, E&O insurance and business vehicle insurance. However, a commercial insurance policy such as business interruption insurance, which pays you money for the loss of earnings due to an event that shuts down your business, is not eligible for deduction, because this type of coverage isn't directly related to the normal operation of your business.
What Types of Commercial Insurance Are Required By Law? -- Any business that hires workers to do a job must possess workers compensation insurance, which covers employees that are injured during working hours, or while conducting business for their employer. Other than that, there is no law that requires mandatory commercial insurance for a business, but it is highly recommended that at the very least, you have a public liability policy in place before you launch your enterprise. Public liability differs from E&O, because it covers you in the event that your business is sued for personal injury, death or property damage. For example, if you own a cafe, and a patron trips and falls due to a wet floor, the resulting lawsuit could shut down your business if you don't have public liability coverage to pay for a lawsuit and medical damages related to the patron's injuries.
For more information on what insurance your business should have, contact an insurance broker from a company like Ian Hewitt & Associates.