You will have a variety of insurance needs as a business owner that other people don't need to bother with. There are basic types of coverage, but you should discuss your particular situation with a commercial insurance broker. Independent brokers (rather than agents with specific companies) are generally a better bet as they will 'shop' your needs with a number of insurers and find the best value for you. Some online websites offer promises of competitive rates.
Buy the coverage you need, but buy only what you need; don't be coerced into buying special items you are really unlikely to use. (Brokers and agents are paid a commission on the amount of business they sell.) Keeping your deductibles high will help reduce costs.
Business Automobile
If you will have a company car that is not your personal car, you will need Business (Commercial) Automobile coverage. Obviously, you should maintain coverage on your personal. Driving in California without insurance is illegal.
Workers' Compensation
If you will have any employees, you will need Workers' Compensation coverage. It is required by the state. Workers' comp provides income to workers who are injured on the job or suffer a job-related illness. If you work alone, while not required, you may want to maintain and Worker's Comp policy for yourself in the event that you are injured on the job. The rate you pay will be a percentage of your payroll and is dependent on the state's assessment of how risky (injury prone) your particular industry is.
You can purchase "bundled" (see below) policies that cover a variety of risks or 'individual' (see below) policies that are more tailored to your specific situation.
Business owners' policy (BOP): A combination or "package" policy for small- to medium-sized businesses that covers both business property and your liability for bodily injury or property damages.
Commercial general liability insurance (CGL): Coverage that provides for liability arising from fire, product, advertising, and personal liability, and for medical payments. A policy limit is in place, so the insurance company will not pay any claims once the total number of claims from all liabilities reaches your limit.
Homeowners'/Renters' Insurance
If you are working from home, contact your homeowners' or renters' insurance provider to see if you need to obtain a 'rider' (add-on) to your existing policy. You may have additional office equipment that needs protection or incur the risk of a client hurting him/herself while visiting you. If you don't have any coverage, this is a good time to get some.
Business personal property insurance
If you have a separate office, this policy covers all personal property that's on the business premises, but only while it's on the premises.
Errors and Omissions (E&O) Insurance
This type of coverage provides you protection from errors and omissions (mistakes) you make in the course of doing work for your clients. It will protect you against claims alleging negligence or omissions on your part that led to personal (or business) injury or property damage.
Employee benefits coverage
This generally includes group health and pension/retirement plans; it can also include group life insurance, disability income insurance, and/or accidental death and dismemberment. You may have some health coverage for yourself from your former employer in the form of COBRA. Contact a broker (link to Selecting Professional Advisors/Insurance Broker) to find out if your company is eligible for a competitively priced employer-sponsored plan, what your options are and how much they might cost.
International | Company | Contact 4D | Site Map | Privacy Policy | © 4D, Inc. 1995-2008 | Change font size: [A] [A] [A] | 
| 4D RSS Feeds