You have to remember that there is more to running a business than the equipment you buy and location/place you use. If you have a product you are producing that is being consumed by the people out into the world , there may always be a chance that you get sued by someone out in the world using your product.
Product Liability insurance protects you by covering injuries caused by the products you produced. If a product liability insurance lawsuit happened, the cost of paying for injuries can be quite expensive.
You can work closely with an insurance agent to determine the right amount of product liability insurance is right for your business.
Professional Liability Insurance
If you are a doctor, lawyer, engineer, dentist, or working in a professional level you will want professional liability insurance. This is especially malpractice insurance.
This insurance can end up being expensive and the reason why some professionals would rather opt out and go without insurance. This can be the biggest risk a professional can make.
Even if you are a separate legal entity, you are personally liable for your professional acts and those of your employees. With your corporation or limited liability company, you are still vulnerable to be at risk if sued.
If a malpractice happens and a client comes and sues you, your personal assets are now at risk alongside all your business assets too. You can minimize this exposure by talking to a qualifies insurance agent to get you a liability protection policy that protects both your personal assets and business assets. Most insurance companies want you to win any legal battles so they bring their own legal team to help you, which is a great extra benefit.
Make sure you read the fine print
You need to make sure that your policy covers everything that agents told you they would cover. Carefully read the policy and make sure to ask questions when something does not make sense and is confusing.
Coverage is determines by the terminology in the insurance plan. Make sure you know what is excluded in the policy.
Agreeing to an insurance policy is very important for your business. If someone fell at your restaurant and you policy does not state anything about insuring people that fall on your premises of business then your insurance can opt out of paying for the costs.
Insurance coverage checklist:
- What type of insurance plan do you have?
- Real Property (real estate)
- Personal property
- Liability Insurance
- Professional Liability Insurance
- Director/ Officer Liability
- Business interruption
- What is your deductible?
- With a higher deductable, what happens to your premiums?
- Do you have to pay a co-payment?
- Are you covered for replacement cost or current value?
- Is your real property covered 100%?
- Is your personal property and equipment covered?
- If you rent a place out, are you depending on your landlord to have insurance OR do you have your own insurance?
- Does your insurance company know about your home office?
- What changes can you make to protect your business and lower your premiums?
- What does your professional liability protection cover?
- What protections does your insurance company cover in place of a lawsuit?
- Does your insurance company pay costs to defend the lawsuit?
- Do you need directors and officer’s liability insurance?
- Are you satisfied with your current insurance agent? Do they assist you or do they just send you premium notices?