3 Types of Insurance a Business Owner Should Consider
When you own a business then of course you need to maintain worker's compensation insurance, to protect your interests in case of an injury to your workers. You also need liability insurance for protection from civil claims filed by clients and customers. However, there are other types of business insurance that an owner should consider carrying, or which he or she might insist that certain workers carry themselves. Note the following.
1. Errors and omissions insurance
This coverage is also sometimes called professional liability insurance, and it's a policy that covers a professional who might be sued for not performing their job properly. Those who carry errors and omissions insurance might include real estate appraisers, real estate agents, lawyers, accountants, notaries, and even those who work in beauty salons, dog grooming companies, and so on.
If you as a business owner also perform certain services for clients and customers directly, consider having this insurance for yourself. You might also require it be carried by your employees who perform professional services. You can also carry this insurance for yourself even if you don't own the company, as a means of personal protection from liability claims.
2. Data breach insurance
If you maintain any type of personal information about your clients and customers, or any type of sensitive information, you may want to consider data breach insurance. This protects your company in the case of that data being breached, shared, or otherwise compromised. This coverage can protect you if the data is stolen electronically or physically, and even if an outside third party company were to commit the breach.
For instance, if you hire a company to shred your paperwork and they fail to do this properly, you might still be sued for the data breach and this insurance can protect you.
3. Director's and officer's insurance
If a director or officer of your company were to do anything that would create legal entanglements for them, the civil suits may reach the company itself even if their actions have nothing to do with the company. This is especially true if the director or officer did something on company time, with company equipment, and so on.
Director's and officer's insurance protects your company from civil suits that may be filed because of the actions of your director or officer. As an owner, you may have them carry this type of insurance themselves or may consider purchasing a policy on your own.
Learn more about which policies you'll need to protect your business by contacting companies like Elders Insurance.