We’re all aware of the importance of having good insurance coverage. But did you know that your email marketing policies may be covered under different policies? Here’s a breakdown of the various types of insurance coverage that you might want to look into.
General Liability
This type of insurance covers the business for accidents and injuries that occur on the premises – whether or not your employees are involved. In other words, this type of policy protects you from lawsuits resulting from traffic accidents, slip and falls, and premises accidents (like this one:
Accidental Shooting
). If any of these things happened at the office, you’d have to pay for the damages yourself. This type of policy also covers the costs of defending a lawsuit filed as a result of an incident covered by the policy. Finally, if you violate the terms of your general liability insurance policy, you could be on the hook for a large financial penalty.
If you operate a brick and mortar business, you might also want to purchase commercial auto insurance, which covers the vehicles that you use in your business. Did you know that your marketing materials (like your desktops, laptops, tablets, and cell phones) are considered “mobile equipment”? This means that if they are damaged or destroyed, you are covered under your commercial auto policy. In addition to that, you are also covered for bodily injuries or death that occur due to negligence or fault of another person. All the above add up to one thing: you need liability coverage. Don’t skimp out on this area of your business!
Intellectual Property (IP)
This type of coverage protects you from losses due to copyright violations, plagiarism, unfair competition, and trademark infringements. If a third party claims that your product is a knockoff, or that you have copied their product and are passing it off as your own, you’d have to prove that you had a “good faith belief” that their product was legitimate. This type of policy also provides you with legal defense in cases where you are sued for patent infringement or trademark violation. A skilled IP attorney can help you draft a solid IP policy that safeguards you from these types of claims. If you are unfamiliar, you can find an IP attorney near you by searching for “patent attorney” or “trademark attorney” in your local phone book.
Professional Liability
If you are a professional like a doctor, lawyer, or accountant, then this type of insurance protects you from losing money because of your errors and omissions. Essentially, this policy covers you for any mistakes that you make while performing your duties. For example, if you diagnose an illness that turns out to be more serious than you thought, you are liable for any damages that result from your mistake. Did you know that this policy also covers you for having to deal with claims filed by clients or patients? Clients or patients may feel that your services negatively impacted their case, and pursue you for compensation. Errors and omissions insurance policies can get pretty complex, so it’s worth getting the help of an expert before you make a purchase decision.
Commercial Real Estate
If you own a building (like a house or a office space) then this type of coverage protects you from financial loss due to accidental damage or destruction. For example, if you lease a space to another business but don’t provide adequate security, that business might suffer a loss due to break-in or robbery. Did you know that this policy also covers you for liability in the case of illness or injury that occurs on the premises? Like the other types of insurance discussed above, this policy covers you for injuries or damages which are caused by negligence or fault of another person. Damages include any repair or replacement of tangible property (like electronics, furniture, clothing – even books and papers), as well as expenses incurred as a result of medical treatment of illnesses or injuries which occur on the premises (like this type of incident:
Assailant Claims Self-Defense, You’re Hit With A Lawsuit
). If the business for which you lease space is injured or damaged due to a covered loss, you are required to notify your landlord of the incident as soon as possible. This policy also requires you to maintain good public relations with the community in which you operate your business. In other words, you can’t hide behind the curtain and hope that nobody notices when disaster strikes. While this type of insurance may sound like an unnecessary expense, it is highly recommended that every business owner purchase this coverage.
Data Breach
Did you know that a data breach can also be considered a “loss”? The following are just some of the incidents which might be covered under a data breach policy:
- Breach of confidentiality
- Information disclosure (like the identity of customers)
- Actual or threatened damage to the data
- Prosecution of a data breach
- Legal defense in the case of a data breach
If your organization stores Personally Identifiable Information (PII) of any kind, you must have a data breach policy. It is recommended that this policy cover all types of losses caused by a data breach, including but not limited to those listed above. Did you know that all of these aspects of a good data breach policy are protected under the US federal Privacy Act?
Crime And Riot
If you operate a business that serves as a target for theft or violent acts, you should consider insurance for these risks. This type of insurance provides coverage for losses due to break-ins, robbery, and vandalism. Did you know that businesses under $500,000 in annual revenue are eligible for a discount on the premium for this type of insurance?
If a break-in occurs at your business, you will have to assess the damage. You should contact your local police department and file a report. Did you know that you have to notify your homeowners’ or renters’ insurance company within 24 hours of discovering the damage? Most insurance companies require a police report as a condition of coverage, so don’t forget about that! You don’t want to lose your insurance because you didn’t notify the company about a crime that occurred on the premises. This could put you in a bad spot financially.
Employment Practices Liability
If you are an employer, then this type of insurance protects you from lawsuits filed by your employees alleging that your workplace is discriminatory or otherwise illegal. This policy also covers the costs of defending such a lawsuit. This type of insurance is also referred to as “Worker’s Compensation” or “Employee Benefits” insurance. Did you know that a cap on legal fees and a guarantee of compensation exist for workers injured on the job? This type of insurance is pretty expensive, but a must for any business that exposes its employees to the risks of working in today’s world. (Do you know anyone who wouldn’t want to work for a company that provides such benefits?) You can purchase this coverage at any time, but it’s best to do so while still in the employment of the same company. Finding and maintaining good coverage is tricky; it’s essential that you choose an insurance company that is experienced in dealing with large employers, and can offer you quality service at a good price!
Annual Premium
The cost of insurance coverage will vary from company to company, and it’s important to shop around for the best price. However, as a general rule of thumb, the more liability coverage you want, the higher your premium will be. It is important to check with your agent or insurance company for the average annual premium, as insurance companies sometimes offer discounts for bulk purchasing, or for employees. If you’re an employee, ask your employer if they offer insurance coverage as part of your benefits package. They may be able to provide you with a discount for purchasing coverage for your business.
As you can see, many different types of insurance policies cover different aspects of your business. Not all of these policies are created equal, and it’s important to understand the differences in order to choose the right one for your needs. If you are interested in learning more, be sure to check out our guide on choosing a business insurance policy, which will help you make the right decision for your company.