Tag: business insurance

What Kind of Insurance Does Your Small Business Really Need? 

It takes guts to open your own business. Seriously — taking that kind of risk, putting your time, money, and energy on the line to build something of your own? That’s bold, admirable, and worth protecting! 

You’ve taken a big chance and gambled on yourself — now don’t risk everything you’ve built by skipping out on the right insurance. Figuring out the right insurance coverage probably sounds boring, tedious and overwhelming, but we have good news!  Business insurance doesn’t have to be complicated. There are a few key policies most small businesses need, and once those are in place, you’re off to a great start. 

Here’s the basic policies most small businesses need: 

1. General Liability Insurance  

Accidents happen — and when they do, this is the coverage you’ll be glad to have. General liability protects you if someone gets injured at your business or if you accidentally damage someone else’s property. It even covers legal fees if a claim turns into a lawsuit. 

Example: A customer slips and falls at your business. You’re covered. 

2. Commercial Property Insurance  

Whether you own a storefront, lease an office, or run your business from a workshop or warehouse, property insurance covers your physical assets — like your building, tools, inventory, and equipment — from fire, theft, storms, and more. 

Pro Tip: If your business operates from home, your homeowners insurance typically doesn’t cover business-related losses. Property coverage tailored for your business is essential. 

3. Commercial Auto Insurance  

If you use a vehicle for business — even if it’s just one — you’ll want this. Commercial auto covers business vehicles and drivers, so you’re not left paying out of pocket. 

Pro Tip: Personal auto insurance typically won’t cover accidents that happen while you’re working. 

4. Umbrella Insurance  

Think of this as a safety net. Umbrella insurance kicks in when a big claim exceeds the limits of your other policies — like general liability or auto. It’s the peace-of-mind policy that helps protect your business from large, unexpected losses. 

There’s more available than just the basics 

Depending on your industry and operations, you might need other coverage — like workers’ comp, cyber liability, professional liability, etc. Every business is different, which is why it’s smart to work with an insurance advisor who can help assess your risks and recommend the right protection. 

Bottom line: 
Taking risks is part of being a business owner — but leaving your business unprotected isn’t a risk you can afford. 

Let’s make sure you’ve got the right coverage in place. 
We’re here to help you protect what you’ve built — reach out today for a quote! 

Author: Judy Sivy

BOP it!

We have a new carrier — Hanover!

We are thrilled the announce the appointment of a new carrier for our agency!

Hanover is a highly rated carrier with AM Best.

Hanover may be a great fit to help insure your risks. They specialize in many coverages ranging from individual personal lines like auto, home, renters, umbrella, valuables, cyber, motorcycle, watercraft as well as their own branded “Prestige” line of personal coverages for those higher value homes and auto. Their business lines of coverage are also very impressive ranging from business auto, BOP (business owner’s policy), cyber, management liability, general liability, professional liability, workers’ compensation, property, surety, and umbrella!

More coverage, more options, and more protection!

We look forward to speaking with you and seeing if Hanover is good fit for your insurable risks.

Contact Us to Learn More

When a CEO Resigns in Scandal—Who Pays? (Hint: Hopefully You Have A D&O Policy)

When a high-profile executive steps down amid controversy—whether due to misconduct, conflict of interest, or just bad judgment—it’s not just a PR crisis.   It can be a financial disaster for the company, its board, and its investors. 
 
That’s where Directors & Officers (D&O) liability insurance is necessary. And if you’re running a business, sitting on a board, or advising one—you need to understand what this coverage really does (and what it doesn’t).  
 

Real World Example: Recent Leadership Scandal 
 
Recently, a tech company CEO resigned after being caught in a questionable relationship with the company’s head of HR. What’s the potential fallout? Damaged reputation, questions of fiduciary duty, internal disruption, and potential legal exposure for the board. 
 
The questions to consider: 
What if investors sue, claiming leadership mismanagement? 
What if employees file complaints about a hostile or unfair work environment? 
What if stakeholders demand a full investigation? 
 
D&O insurance steps in to cover defense costs, settlements, and judgments related to claims of mismanagement, breach of duty, or decisions that financially impact others. 
 
What Exactly Does D&O Cover? 
• Breach of fiduciary duty 
• Misrepresentation or failure to disclose material facts 
• Employment-related decisions made at the executive level 
• Shareholder or investor lawsuits 
• Regulatory investigations 
 
D&O covers the individuals (directors and officers) personally, as well as the company itself in many cases. Without it, decision-makers could be risking their personal assets.  
 
Who Needs D&O Insurance? 
 
D&O isn’t just for publicly traded and high-profile companies. Here’s who should have it: 
 
Private businesses with outside investors or a board of directors 
Startups with VC backing 
Nonprofits (yes, their boards can be sued too) 
Any business where leaders are making decisions on behalf of others 
 
Common Misconceptions We Hear 
 
“We’re small—we don’t need D&O.” 
Size doesn’t shield you from lawsuits. If you have stakeholders, you have exposure. 
 
“It’s just for securities lawsuits.” 
Wrong. Claims can stem from employment decisions, mergers, acquisitions, partnerships, and vendor relationships. 
 
“We’ll just pay out of pocket if something happens.” 
Even a frivolous lawsuit can cost six figures to defend. D&O protects against that drain on your business or your personal finances. 
 
Let’s Cut To The Chase 
 
The cost of a D&O policy is minor compared to the cost of defending a claim. And in today’s climate—where leadership behavior is under a microscope—it’s one of the smartest insurance purchases a business can make.  
 
Need help evaluating whether D&O coverage makes sense for your business? 
Let’s talk—no pressure, just education! 

Author: Judy Sivy

Contact Us to Learn More

How Can My Business Qualify for a Business Owners Policy?

Many small businesses search for a way to save money on insurance, as they believe that they require less than smaller businesses. While this may be true as a general rule, it is still important for small businesses to find the coverage they need at a price they can afford. 

A business owners policy is business insurance specifically created to cover small businesses in low risk industries with reliable commercial insurance. Not all businesses can qualify for business insurance, however. 

Size and Industry Qualifications 
Only businesses of a certain size and within a certain industry will qualify for business insurance. The size category of your business can vary depending on your industry, however. For example, one industry may consider a business with 100 employees may be considered a small business while another industry may consider a business with 1,000 as a small business. 

Size can also be determined based on your business’ annual income. If a business that is small employee-wise but has a substantial annual income, they may or may no qualify for a business owners policy.  

When it comes to industry, only businesses in low risk industries may qualify for a business owners policy. A low risk industry is one that does not present as high a risk of an accident or lawsuit as other industries. Examples of low risk industries include: 

​What Do You Need to Get a Business Owners Policy? 
Once you are certain that your business qualifies for a business owners policy, you can start purchasing insurance. You must be able to provide the appropriate information to your potential insurer in order to purchase this insurance, including: 

​Every BOP is different depending on your business and its insurance needs, so speak with an insurance agent about what you need to insure your business. 

Getting Insured Once You Qualify 
Say you are qualified for a business owners policy and have the relevant information ready. What now? 
First, compare quotes from multiple insurers. Comparing insurance providers and their prices can help you find the policy you want at a reasonable price. It can also help you figure out how much and what type of insurance your business needs. 

Knowing what a BOP covers is crucial for choosing the right policy. For example, a basic BOP includes two basic coverages: 

​Additional coverages are available, as well, depending on your business’ insurance coverage needs. Optional coverages you may consider adding to a BOP include: 

If you have any questions about how to qualify for a business owners policy or what coverage you should have, speak with an insurance agent. 

When Can a Workers Compensation Claim Be Denied?

When Can a Workers Compensation Claim Be Denied?​

​Workers compensation insurance offered through employers is designed to cover employees who are injured on the job. It can help with a variety of expenses related to a workplace injury, from emergency medical bills to wage replacement. Unfortunately, not all workers compensation claims will be approved.​

There are some cases where a workers compensation claim may be denied. This generally happens when the injury is not covered under the employer’s policy or other requirements of the claim are not met. It is important to understand the limits of your employer’s workers compensation policy and keep track of every aspect of an accident.​

​Lack of Documentation​

One of the major reasons a workers compensation claim may be denied is a lack of documentation. If no one is around to see the injury, you may have a hard time convincing an insurer that the injury occurred at work or related to work practices. Keep in mind that not all injuries that occur on your employer’s property may be covered. If you are injured, make sure to speak with those who witnessed the injury and have them speak on your behalf to your employer and, if necessary, the insurer. 

​If possible, write down the incident or take pictures of the area. If the property has cameras, make sure your employer checks the camera’s history for the incident.​

​Missing the Time Limit​

Many workers compensation policies have an expected time limit in which an employee should file a workers compensation claim. If an employee waits too long to report an injury or file a claim, the insurer may suspect that the injury was not severe enough to need compensation if it was not reported immediately. Some states also have laws requiring employees to report work related injuries within a certain span of time, such as a week (seven days). If you wait too long to report an injury or file a claim, you could find your claim denied.​

​Mismatching Information​

Even if you have all of the information about a workplace injury as well as witness testimonies, you aren’t completely protected from a denied claim. In some cases, statements and proof may be inconsistent, leading to a denied workers compensation claim. This is especially true if your accident report and medical records do not match up. For example, say an employee claims they trip and fall on their knee while carrying a heavy box at work. When they seek medical attention, they tell their doctor that they twisted their ankle. A claims adjuster from the insurer will investigate the claim as well as the initial medical report. If they find any inconsistencies, a workers compensation claim could be denied based on dishonesty. It is crucial to always be honest with your supervisors and doctors after a workplace injury.​

​Not Seeking Medical Help​

While there is a time limit to reporting an injury, there is also an expectation for seeking medical attention after a workplace injury. Most workers compensation policies will require you to seek medical attention immediately following a workplace injury. Waiting too long may result in a denied claim, as the insurer will believe that the injury was not severe enough for medical attention. Also keep in mind that many workers compensation policies have a list of approved medical providers. If you do not see a medical provider that is approved, even if you seek immediate medical attention, your claim could be denied. If you have a preferred medical provider, make sure they are covered under your employer’s workers compensation policy.​

Accidents Not Covered​

Sometimes, the nature of the accident itself will be the difference between an approved claim and a denied claim. Accidents will not be covered if the injury occurs while:​

​Keep in mind that medical providers generally do drug tests when handling work related cases. If there is any trace of illegal drugs in your system at the time of the accident, you may not be covered under workers compensation insurance.​

​Refusal to Speak with the Insurance Company​

Insurance providers will generally want to hear from the employee directly or otherwise have them sign certain medical authorizations. Refusing to do so is not legally required, but the insurer may state that this choice prevents the start of workers compensation benefits. Employees may be able to get around signing certain medical authorizations by getting their own medical records and sending them to the insurer of their own accord.​

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