Small Business Insurance Options | Companies

As part of its contingency plan, every small business should reduce its risk in the market with appropriate insurance policies. A common way to get small business insurance is to start with a Business Owners Policy (BOP), which is a basic package of corporate liability / property insurance coverage. This type of policy covers business property, liability and income and therefore offers a number of benefits as well as options in the form of drivers for other types of coverage. It is a good choice for business owners who rent a space and have equipment in it.

Professional indemnity insurance, also known as failure and omission insurance, is one of the most popular types of business insurance. Professional indemnity insurance is usually aimed at professionals who provide advice, such as lawyers, accountants, and engineers. Failure and omission insurance usually covers actions and omissions by craftsmen or a company that offers a product or service to the public. However, these guidelines may not provide coverage for claims under the Texas Deceptive Trade Practices Act.

Business interruption insurance covers lost profits if your business is suddenly closed due to forces beyond your control. Some of these incidents could be a hurricane, ice storm, or power outage that causes you to shut down your business. Recently, some, but not all, business interruption policies have covered disruptions caused by virus shutdowns.

Employment Practices Liability Insurance covers employee claims. This type of policy covers the cost if an employee sues you for discrimination, sexual harassment or wrongful termination. This type of insurance is offered as a driver in a BOP or as an individual insurance.

Employee Compensation, which is not required in Texas, protects against claims for work-related injuries.

The worker is insured for medical care and some lost wages, and the employer is protected from claims by the injured worker or an insurer.

Employee Honesty Insurance (sometimes under other names) protects the company from employees who may act dishonestly or steal property from their employer or customer.

Cyber ​​insurance protects your company from malware, cyber attacks and data loss – a real threat to any business. If your business does something online, you need cyber insurance. Make sure any guidelines you look for cover credit card processing and accepting digital payments, and storing sensitive information.

There are other guidelines available for small businesses that will be a waste of money for most but beneficial for some. Small businesses should contact their insurance agent at least once a year for an assessment of their insurance needs.

Ty Zeller is Business Advisor at UHV’s Small Business Development Center. The UHV SBDC is part of a nationwide small business aid program that serves the small business community and federal, state and local governments. The center provides advice, training and technical support for existing and newly established companies in an area with 11 counties. To schedule an appointment for business services or to register for a UHV SBDC workshop, call the center at 361-485-4485 or email [email protected]

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