Upgrading Your Business Insurance Policy

You’ve spent countless hours developing a business plan to secure financing. You’ve hired a talented staff and purchased office equipment to get things up and running. You’ve burned the midnight oil and worked numerous weekends to build your business. And should a lawsuit or natural disaster strike, or some other crisis send your company into a frenzy, your smoothly operating machine won’t be derailed, because you’ve bought basic business insurance.

But what if you’ve been playing the game for several years now, and you’ve developed your business from a respectable hum to a pulsing buzz? As your business changes, so do your risks and exposures. It’s only natural that the scope of your business insurance should grow accordingly. Whether you need additional coverage in your basic business owner’s package policy (BOP) or you intend to purchase an insurance policy that addresses specific risks (such as product-related insurance), making sure your business has adequate protection should be an ongoing task.

Communicate with your broker about ways to save money. Even if it’s an investment, such as installing an alarm system, you could end up saving money in the long run, because premiums add up quickly.

Whether it’s coverage for products in transit or property insurance, don’t dismiss supplemental business insurance as unnecessary extras. Because if you’re hit with a lawsuit or a storm, “extra” could mean all the difference.

The following are types of supplemental business insurance you should check out to make sure your company is fully protected.


Business Insurance Supplements

Auto insurance (or fleet insurance): Provides coverage for injury, damage or theft. It’s wise to have coverage even if you don’t have company-owned vehicles in case you (or an employee) get into an accident while driving a personal or rental car on company business.

Business interruption insurance: Related to a business’s inability to function due to losses incurred by covered perils like fire or storm damage. It provides compensation for lost income, ongoing expenses such as rent and the costs of setting up a temporary facility.

Crime insurance: A type of crime/fidelity insurance that covers the cost of losses arising from employees’ dishonesty or fraudulent acts such as forgery, burglary, computer fraud and extortion.

Directors & officers insurance: Protects the personal assets of directors and officers from liability claims related to their organizational activities.

Product-related insurance: Covers manufacturers’ or sellers’ liability for losses or injuries to a buyer, user or bystander caused by a defect or malfunction of their product.

Umbrella insurance: Provides additional liability coverage above and beyond the limits of coverage as stipulated in your main policy.