A life insurance policy is a valuable benefit for small businesses looking to support their employees and their families. This type of policy is essentially a contract between employers and insurance companies. As a small business owner, you can offer life coverage as part of your overall benefits package. In short, life insurance plans help employees secure financial protection for their loved ones. 

 Jump To:

• How Does Small Business Life Insurance Work?

• Types of Small Business Life Insurance

• The Cost

• How to Choose Your Coverage Amount

• How to Choose the Right Policy

• Get Small Business Life Insurance Today!

How Does Small Business Life Insurance Work? 

Employees typically pay a monthly premium, and if they pass away, the insurance company will provide the beneficiaries they have chosen with a death benefit. A death benefit is a one-time payment in exchange for the premium payments that you made during your lifetime. In general, beneficiaries are free to spend the money however they see fit, covering costs like recurring bills, mortgage payments or the cost of education for a child. 

In short, life insurance allows small businesses to offer their employees a financial safety net, ensuring that their families will be taken care of. In addition to providing team members with a way to plan for their future, life policies also enhance overall job satisfaction, retention and recruiting efforts.

Types of Small Business Life Insurance

There is a wide variety of policies to choose from. No matter your employee’s requirements and preferences, there is a policy out there. When you start looking for a small business life insurance policy, the first decision you’ll have to make will be between the two main types of coverage:

• Term life insurance
• Permanent life insurance

The best policy for you depends heavily on what you need, including whether you require a short- or long-term policy.

Term Life Insurance 

Term life insurance is the most popular type of policy because it tends to be the most affordable. With a term policy, you select a specific length of time that you want coverage, typically 10, 15, 20, 25, or 30 years. With that being said, you can get a policy for as few as 5 years, depending on your needs and what your preferred insurer offers. 

Another plus to these policies is that premiums never change during the time frame that you choose. As long as you have paid these premiums, if you pass away during the term of your policy, your beneficiaries will be able to file a claim for the death benefit and receive the money without having to pay taxes on it. 

You may be able to renew your policy after the term has ended in one-year increments. This is referred to as guaranteed renewability. However, the price of your renewed policy will increase on an annual basis.

You will have to apply in order to get a term policy; your chosen insurer will determine your risk level before offering you coverage. This is known as “underwriting,” and it typically involves undergoing a medical examination to assess your health, as well as questions about your profession, hobbies, and your health history. Rates may increase if you engage in potentially harmful activities, such as scuba diving. Insurance costs can also go up if you work in a hazardous environment, like on an oil rig. It’s important to note, though, that there are certain term policies that do not require a medical exam, but they may be more expensive, or offer a smaller death benefit.

Permanent Life Insurance

A permanent life insurance policy remains in effect for the entirety of your life, provided that you continue to pay your premiums. This type of policy is generally more expensive than a term life policy because it will never need to be renewed. 

There are several types of permanent policies, including:

Whole Life Insurance 

Also known as traditional life insurance, this type of policy is guaranteed to remain in place for your life. Whole life insurance not only provides a benefit to beneficiaries upon passing away, but it also includes a savings component. Meaning you will accrue a cash value when you pay your premiums. Interest will also be accrued on a tax-deferred basis at a predetermined rate throughout the term of the investment.

Universal Life Insurance 

Universal life insurance policies offer more flexibility when compared with whole life policies. You’ll be able to choose between multiple options for both your premiums and your death benefit. As well be able to change your premium rates throughout the life of the policy as your cash value grows. 

These policies, like whole life policies, also have a cash value. Your premium price will include both the cost of insurance (COI), and the accrual of your cash value. The price of this premium will be dependent on your age and risk level.

Indexed Universal Life Insurance 

The primary difference between indexed universal life insurance (IUL) and traditional universal life policies is how cash value is accrued. Instead of only being able to grow based on a fixed rate, the cash value with IUL can also grow based on a stock index. Which is a predetermined grouping of various stocks.

IUL provides the same flexibility to change your premium as your cash value grows as universal life does, with the potential to one day have all of your premiums paid for by the cash value you have accumulated. This is known as a “zero-cost policy.”

Variable Universal Life Insurance

The term “variable universal life” (VUL) refers to a specific type of permanent life insurance policy that includes an integrated savings component and makes provisions for the investment of your cash value. The premium is adjustable, just like it is with standard universal life insurance. The cash value can be invested thanks to the investment subaccounts offered by variable universal life insurance. The subaccounts perform a function that is similar to that of a mutual fund. These policies are “variable” since the returns you’ll see with your cash value account will vary based on market fluctuations. 

When compared to traditional cash value or whole life policies, VUL insurance will give you greater flexibility and growth potential. But before purchasing this type of policy, you should carefully evaluate the associated risks.

Final Expense

Final expense life insurance, also known as burial, funeral, simplified issue, and modified whole life, is a type of whole life policy that is simple to qualify for. It also provides a modest payout in the event of your passing. This type of policy is an excellent choice for those who are looking for inexpensive whole life policies that have a death benefit ranging from $2,000 to $35,000. 

The only big difference between final expense life insurance and other types of permanent life insurance is that this type of policy does not have a cash value. They also have a smaller death benefit as well as lower premiums. The death benefit of final expense insurance is intended to cover expenses for funeral or memorial service and burial/cremation. But with that being said, your beneficiaries will still be free to put the death benefit toward whatever they want.

The Cost

The price of life insurance can vary quite a bit depending on a number of factors. The kind of life insurance policy that you purchase will be one of the most important determinants of its cost. For example, the same amount of coverage for a term life insurance policy will be cheaper than it will be for a whole life insurance policy.

Some other factors that can affect the price of your small business policy include:

• Employee Age – Premiums tend to be lower for younger employees since they have a lower risk of passing away in the near future. 
• Employee Gender – According to the National Center for Health Statistics, the average lifespan of a female is approximately four and a half years longer than that of a male. Because of this, in most cases, men pay a higher premium than women do. This rule is not followed in certain states like Montana where insurers must provide gender-neutral life insurance rates.
• Employee Health – Your life insurance premiums will be heavily influenced by the state of your health. While most insurance group life insurance policies don’t require employee medical exams, insurance companies may look at the overall health profile of your workforce. 
• Industry and Workplace Risks –  Companies within industries with higher-risk jobs may be subject to higher group life insurance rates. For example, a construction company with employees who regularly use heavy machinery would be considered a high-risk occupation. 

How to Choose Your Coverage Amount

In order to estimate how much life insurance coverage you should offer to your employees, you should: 

• Think about the financial protection that your employees and their families need. Think about a coverage plan that helps to replace your employee’s lost income, pay off debts, and cover future expenses like education and mortgage payments. A common practice for businesses is to offer employees a fixed coverage amount like $50,000. Other owners will simply multiply their employee’s salary by 1 or 2 to come up with the coverage amount. With all that being said, the larger coverage amount you’re able to offer, the more protection your employees and their loved ones will gain. 
• Assess your business’s budget. Determine the amount your company can contribute towards employee premiums, and subtract this number from your available fund. While some business owners choose to cover the full cost of their employees’ coverage, others offer life insurance as a voluntary benefit. This simply means that employees can opt in to get the coverage for an additional cost per month.
• Consider long-term affordability. The coverage you provide should be affordable for your business, while also offering meaningful financial support to employees’ families. Finding the balance between these two factors is crucial in getting a policy that satisfies your team and is sustainable for you as an owner.

How to Choose the Right Policy

There are so many options when it comes to life insurance that it can feel overwhelming to make the right choice for you. So, the first thing you should do is determine whether you want term or permanent life insurance.

If a policy that offers life coverage for a limited amount of time is more attractive, you should think about purchasing a term life insurance policy. Term life is also an excellent option if your finances are tight, since the premiums are usually significantly less expensive than those for permanent life. Lastly, if your needs change, you can usually convert your term policy into a permanent policy at a later time. You won’t have to reapply for life insurance or undergo a medical exam if you convert your term policy to a permanent plan. This is thanks to the term life conversion option.

A permanent life policy, on the other hand, is a good option if the accumulation of a cash value is a priority for you and your team. With that being said, these policies generally come at a higher cost. Due to this factor, they are less commonly adopted by employers. 

All in all, the type of policy you decide on depends on you and your team’s preferences and future goals. With that being said,  term life insurance is the more typical addition to employee benefits packages as they offer broad coverage and are lower in cost. 

Get Small Business Life Insurance Today!

Everybody has their own unique set of requirements, priorities, and financial constraints. At EZ.Insure, we know that you want the best coverage for yourself, your employees and their families, but we also know that you have to stick to a budget. 

Our user-friendly platform offers free, no-obligation quotes, side-by-side plan comparisons and 24/7 access to licensed insurance professionals. Don’t let your team go uninsured any longer. Instead, get a small business life insurance policy and protect their loved one’s futures, today! 

To get started, simply enter your ZIP code in the box below, or give us a call at 888-788-4649.

It doesn’t matter if you’re simply looking for a personal health insurance policy, or a comprehensive business insurance plan to protect your assets. At the end of the day, it comes down to finding someone who understands your goals, and pain points. 

But let’s face facts—it’s nearly impossible to put your trust into someone after meeting with them only one time, but if you come prepared with the right questions to ask, the process will be seamless, and you’ll leave feeling protected. 

To help you on this endeavor, our FAQ guide answers commonly asked questions about insurance agents, their backgrounds, and what to look for during your search, so you can confidently choose the perfect insurance agent for your situation.

Q: Why Should I Be Picky When Choosing an Agent to Work With? 

All insurance agents are not built equal. Just like any profession, there are always going to be agents who truly care about helping people, and others who simply want to make a quick buck. The truth of the matter is, that beyond helping you find the coverage plan that best fits your needs, a quality insurance agent will also provide value in other ways. This includes, guiding you through claims processes, providing you with updates about industry news, helping you to avoid steep prices or inadequate coverage options, and ensuring that your coverage never lapses without you knowing. 

An insurance agent’s goal should not be to get you to sign one contract. Instead, they should aim to provide you with top-of-the-line customer service. Their goal should be for you to want to renew your policy with them each year. Unfortunately, not all agents think this way. That’s why it’s crucial to never settle when choosing an insurance agent to work with. 

Q: What Should I Look For When Selecting an Agent? 

No matter why you’re looking for a new insurance agent, it’s important to understand their history and background. Here are some keys to consider: 

Experience

While it may be appealing (and isn’t always a bad option) to go with a young, enthusiastic agent who’s new to the industry, in most cases you’re better off finding someone with a lengthy track record. To this point, it’s crucial that you perform some research about the agent that you’re considering.

Pay attention to the products they specialize in, to ensure that they’re an expert in the coverage you’re looking for. Additionally, evaluate the companies that they’ve worked for, as well as the number of years they’ve been in the industry. 

Licensing

The agent and/or agency that you decide to work with MUST be licensed in your state. You can check if your prospective agent is licensed by visiting the National Insurance Producer Registry (NIPR) or by searching your state’s licensee database.

Certifications

Oftentimes when reviewing the background of an insurance agent, you’ll notice some capital letters next to their name. These are insurance certifications, and while they aren’t required by law, they add another level of credibility and experience. Common certifications include: Certified Insurance Counselor (CIC), Accredited Advisor in Insurance (AAI), Certified Insurance Service Representative (CISR), and many more.

Reputation/Complaints

While experience, licensing, and certifications are all important and necessary considerations, nothing is more telling than personal experience. Take the time to look into the reputation of the insurance agent or agency. This may be as easy as searching the agent’s name and looking at reviews and testimonials. To examine an entire agency or brokerage, you may be better off using resources such as the Better Business Bureau. During this exercise, note both positive and negative customer experiences paying attention to their reliability, communication and professionalism. 

Q: Independent Agent, Captive Agent, or Broker? 

When choosing the right insurance agent, you generally have three main options to work with: independent agents, captive agents and brokers. Each option has their own sets of pros and cons: 

• Independent Agents: Independent insurance agents work for themselves and offer policies from multiple different insurance carriers. The main advantage of working with an independent agent is the flexibility. This is the case since they are not limited to the plans of one single company. For individuals looking for personalized solutions, and the ability to compare different carrier options, independent agents are a great choice. 
• Captive Agents: On the other hand, Captive insurance agents represent one single insurance company. While captive agents may not have the flexibility in terms of carrier options that independent agents do, they are experts in their company’s products. Additionally, captive agents working for bigger organizations often have more ability to offer deals and discounts.
• Brokers: Brokers are different from independent and captive agents as they work to represent clients, instead of themselves or a company. Insurance brokers have access to local insurance marketplaces, allowing them to evaluate a client’s needs and find them a highly customized plan within the clients specific price range. Similarly to independent agents, they have access to multiple different carrier’s plans. Unlike independent and captive agents who make commission from the sale of a policy, brokers usually just charge a fee upfront to find their clients a suitable plan. 

EZ.Insure is an example of an insurance brokerage. Our easy-to-use platform enables you to simply enter your basic information, and get matched with a licensed agent who has access to all the top plans in your local area.

Q: What Should I Expect When Meeting with an Agent?

 Preparation is key to success and getting a quality insurance plan. Here’s some things that you can expect to encounter at your meeting with an insurance agent: 

• Assessment of Your Needs: Don’t be surprised if the agent is ready to ask you a bunch of questions. Don’t worry—there are no right or wrong answers. They’re simply trying to get a gauge about your life circumstances and needs in order to find you a suitable insurance plan. Questions might pertain to your budget, family or business, specific requirements, or any concerns you may have upfront.
• Options: An effective agent won’t try to pigeonhole you to a particular plan or for independent agents and brokers, to a particular carrier. While it may seem overwhelming, most agents will initially lay out several options. Based on the information and preference you provide, they’ll then  narrow it down to the plan best suited for you.
• Coverage Details: While it may not be necessary to delve into the fine print of policy, your agent will likely discuss the key feature of your potential policy. This includes premiums, deductibles, coverage limits, exclusions, and more depending on the type of insurance you’re seeking. For the average Joe, the terminology may come off as confusing, so don’t be afraid to ask questions.
• Cost: There will come a time in the conversation when the cost of coverage must be discussed. A good agent will be upfront about costs, and similarly to coverage details, it’s not always easy to understand. The main cost components include premiums, deductibles, co-pays and out-of-pocket expenses. Lastly, just like for any sales pitch, if something sounds too good to be true, it probably is.
• Chance to Ask Questions: As previously mentioned, insurance is complex and so is the jargon that goes along with it. Feel free to ask questions to your agent before, during or after his pitch. An experienced agent should welcome questions and be happy to answer them for you.
• Documentation: If you happen to make a final decision during your meeting you can expect agents to walk you through the application process. This process could be online or on physical paper. Either way, you’ll have to provide some documentation and sign some other documents to finalize the process.

Q: What Questions Should I Ask? 

While insurance agents who are effective at their jobs should answer most of these questions without you having to ask, it doesn’t hurt to show up prepared.

What type of insurance do you specialize in?

Even if the agent offers the type of insurance you’re seeking, it doesn’t mean they are an expert. For example, someone who sells health insurance may also offer life insurance. This doesn’t mean that they’re as knowledgeable about the product as someone specializing in solely life insurance. 

How do you work to determine the best policy to fit my needs? 

Asking this question upfront provides you with an overview of their evaluation process. Additionally, the amount of detail they offer is telling about how much they truly prioritize your needs, or if they’re simply trying to make a quick sale. 

What does the claims process look like? 

A good agent makes the claims process easy to understand, ensuring that they will be there every step of the way. Additionally, this question provides insight about how long the process generally takes, and if they offer tools such as an online portal to file claims. 

Can you explain the policy details, and costs beyond premiums? 

A top-tier agent should easily be able to break down the key details of a plan in layman’s terms. Asking this ensures your understanding about what’s covered, what isn’t, deductibles, co-pays, out-of-pocket costs or any other additional fees. 

What happens if I want to cancel my policy? 

It is essential to understand the fine print of a policy in regards to cancelations or policy changes. Don’t wait for surprises down the line. Instead, ask about penalties or fines in relation to canceling a policy during your initial meeting. 

Do you offer any discounts or have any special promotions? 

Especially when dealing with a captive agent, you may be able to get a deal or discounted price. The key is to ask, because some agents may not bring their special offerings up otherwise. 

Q: What Are Some Red Flags to Look Out For? 

During your research and/or initial meeting, be weary of agents who:

• Offer coverage plans with premiums costs or coverage terms that seem too good to be true. If the cost of the plan varies significantly from most other competitors, there’s probably something fishy going on.
• Avoid answering basic questions or talk over you during the meeting.
• Use pushy sales tactics to try to get you to sign up for a plan that doesn’t align with your  needs or budget. 
• Have a high number of negative reviews or provide unclear answers when asking about references. 

Agents who are characterized by any of the above should be avoided. Similarly, if your current insurance agent has any of these qualities, it’s likely time for you to branch out and find someone new. 

Ready to Choose the Right Insurance Agent?

While choosing the right insurance agent for your needs may seem like a hassle, it doesn’t have to be. By performing in-depth research, understanding what to look for and what to avoid, knowing the difference between different types of agents, and preparing with some specific questions, it’ll be easy to make an informed decision, and walk away confident and covered. 

Before choosing an agent or company to work with, we encourage you to explore all of your available options, and there’s no better way to do that than by visiting EZ.Insure. Whether you’re looking for insurance to protect your business, your team, or just yourself, EZ has it all. 

From licensed agents available 24/7 to our plan comparison tool allowing you to view competing options side-by-side, we’ll find the ideal agent and plan for you in a matter of minutes. So what are you waiting for? Simply enter your ZIP on the right side of the screen or call us directly at (855)-694-0047 to get started.

That’s why it’s crucial to understand the types of coverage you need, the average cost, and how to find the best policy to ensure that you and your passengers are protected.

Luckily, we’ve developed a simple guide exploring all of these key points. Let’s dive in!

Already know what you need? That’s great! Get a personalized commercial auto insurance quote from EZ.Insure today, and stay protected from day one. 

Why Uber Drivers Need More Than Just Personal Auto Insurance 

When you drive for Uber, basic personal auto insurance is not usually sufficient. Here’s why:

The Difference Between Personal Auto and Commercial Insurance

Personal auto insurance is intended for personal, not commercial, usage. When you drive for Uber, you are using your vehicle for commercial purposes, which alters your risk profile in the eyes of insurance companies. This means that many personal motor insurance policies will not cover incidents while driving for Uber.

Gaps in Uber’s Insurance Coverage

Uber offers some insurance coverage to drivers, but it is limited. Uber’s coverage only applies during some parts of your drive. 

Let’s take a look at some specific driving situations and which insurance coverage would apply during each: 

• Offline or Personal Use: If you are using your vehicle for personal purposes, and not online in the Uber app, you’ll have to rely on your personal vehicle insurance policy. 

• Waiting to Receive a Ride Request: Uber offers limited liability coverage during these times.

• En Route to Pick Someone Up & During a Ride: Uber provides liability, collision and comprehensive coverage, but only if you have these coverages on your personal policy. Their coverages also usually include a deductible. 

In short, while your own coverage will help in some ways, having a comprehensive commercial auto plan helps by filing the gaps in coverage, so you can avoid costly out-of-pocket expenses. 

Types of Commercial Insurance You Need as an Uber Driver 

As an Uber driver, you need several kinds of commercial insurance to ensure complete coverage. Here’s an overview of the coverage types you’ll want to invest in: 

Rideshare Insurance: This is a hybrid coverage intended for Uber and other ridesharing drivers. It fills the gap between your personal auto insurance and Uber’s coverage, ensuring you’re protected during all driving phases

Liability coverage: This coverage type protects you if you are at fault in an accident that injures others or damages another person’s property. This coverage is crucial in order to avoid costly out-of-pocket expenses for legal or medical bills.

Collision Coverage: This policy type provides coverage for the cost of repairing or replacing your car in the event of an accident, regardless of responsibility. Since Uber’s collision coverage is only available if you have it on your personal policy, adding collision insurance to your business policy assures you’re covered in the event of an accident while driving for Uber.

Comprehensive Coverage: This type of  insurance protects you from non-collision incidents such as theft, vandalism, and natural disasters. Given the time that Uber drivers spend on the road, this coverage is critical.

Underinsured/Uninsured Motorist Coverage: If you are hit by a driver who does not have appropriate insurance, underinsured/uninsured motorist policy will protect you. 

Risks of Driving for Uber Without Commercial Insurance 

Driving for Uber without sufficient commercial insurance might result in major financial and legal consequences. Here’s what you’re risking: 

• Risk of Claim Denial: If you are involved in an accident while waiting for a ride request, your personal motor insurance may deny your claim due to commercial use. Without commercial insurance, you may be solely responsible for repair costs and liabilities expenses.
• Out-of-Pocket Expenses: Paying for medical bills, car repairs, or legal expenses out of pocket can be extremely costly. Commercial insurance protects you from such risks by ensuring you are covered in all circumstances.

How to find Commercial Auto Insurance for Uber Drivers 

Finding the right commercial insurance for Uber requires careful consideration. Here are key factors to keep in mind:

• Coverage Options: Look for policies that specifically cover rideshare driving and offer comprehensive, liability, and uninsured motorist protection.
• Cost and Affordability: Balancing affordability with the right coverage is crucial. Getting quotes from multiple providers can help you find competitive rates.
• Customer Support: Choose an insurer with excellent customer service to ensure you can easily manage claims or get assistance when needed.

Compare Rates with EZ.Insure

EZ.Insure is the best option for Uber drivers looking for commercial insurance. EZ.Insure simplifies the process for rideshare drivers by providing quick quotes, low rates, and coverage options tailored to their needs.

Get a personalized commercial insurance quote from EZ.Insure now and drive with confidence.

Average Cost of Commercial Insurance for Uber Drivers

The cost of commercial insurance for Uber varies based on several factors:

• Location: Urban regions typically have higher premiums due to increased accident risk.
• Driving History: A clean record will help lower your insurance, however accidents or violations might raise it.
• Vehicle Type: Larger vehicles or those with higher repair expenses may have higher premiums.

While premium costs vary quite a bit depending on the above factors, and the carrier you’re working with, Uber drivers typically pay between $100 and $300 per month for commercial auto coverage. 

FAQs

Do I need commercial insurance coverage even if I only drive part-time for uber? 

Yes, even part-time Uber drivers require commercial insurance. Part-time driving is still considered commercial use and is therefore not usually covered by personal vehicle insurance.

What is the difference between rideshare and commercial insurance?

Rideshare insurance is a type of commercial auto insurance intended exclusively for drivers employed by companies such as Uber. It fills in gaps that traditional business or personal insurance may not cover. Commercial insurance is an overarching term that refers to a variety of different policy types, all aimed at protecting businesses.

Can I drive without company insurance while not logged in to Uber?

Yes, when you are not actively working for Uber, your personal motor insurance usually covers you. However, getting rideshare or commercial insurance guarantees that you are fully covered while on the job.

Is this blog’s information applicable when driving for other ridesharing apps, such as Lyft? 

Yes, the information in this guide is generally applicable to drivers for other ridesharing firms, including Lyft. Whether you drive for Uber, Lyft, or another service, the need for commercial insurance is similar. Both Uber and Lyft offer limited insurance coverage, but it may not entirely protect you in all instances. 

Get the Peace of Mind You Deserve as an Uber Driver

Commercial insurance for Uber drivers is more than just an option; it’s necessary in order to protect yourself, your passengers, and your rideshare business. 

Commercial insurance provides the peace of mind that every driver deserves by filling in the gaps between personal and Uber-provided insurance. 

Don’t leave your safety to chance. Instead get insured today!

Ready to take the next steps? To ensure that you’re covered every mile of the way, get a quote from EZ.Insure! Simply enter your ZIP code into our data form, or call us directly at (855)-694-0047. 

Was this guide helpful? If so, take a moment to check out our entire resource library where we house tons of informational articles, all aimed at helping people save money and run successful business operations!

If you own a small business, protecting yourself from these dangers is critical. But do you know which form of insurance will protect you—general liability or professional liability? The answer could mean the difference between being fully insured and experiencing significant financial loss.

Let’s explore all you need to know.

What is General Liability Insurance?

General liability insurance (GLI) is a type of business insurance that protects against third-party claims involving bodily injury, property damage, libel and slander, advertising injury and reputational harm as a result of your business operation. General liability goes a long way in helping cover incidents by paying for legal defense and other court costs. 

Key Examples 

• A customer slips on a wet floor in your shop and submits a claim for medical expenses.
• You accidentally damage part of a client’s property while working on their site, resulting in costly repairs.
• A competitor alleges you of using advertisements that damaged their brand, resulting in an advertising injury claim.

The Importance of General Liability for Small Businesses

Regardless of the industry that you’re in, general liability can greatly benefit your small business. By protecting your operation against the financial burdens associated with accidents, injuries, property damage, and more, your business will handle the unexpected with ease and remain successful into the future. 

Who Needs General Liability Insurance

General liability is essential for the majority of businesses but particularly those with physical location, or if businesses that deal directly with clients face-to-face. Think about businesses that could face claims involving property damage or physical injury, such as restaurants, retail stores, and contractors. 

What is Professional Liability Insurance? 

Professional liability insurance, also referred to as errors and omissions (E&O) insurance deals with claims resulting from negligence, misrepresentation, or inaccurate advice provided by your professional service. Unlike general liability, which focuses on physical risks (explained in the above section), professional liability is meant to protect service-based businesses where mistakes or advice could lead to financial loss. 

Key Examples

• An architect makes a mistake in a building design, resulting in structural concerns and expensive repairs.
• A consultant delivers poor business advice, resulting in financial losses for the customer.
• An accountant makes an error in financial reporting, resulting in tax fines for the customer.

Who Needs Professional Liability Insurance?

Professional liability insurance is essential for service businesses that offer specialist knowledge or guidance. Consultants, accountants, architects, real estate brokers, and healthcare practitioners are more likely to face accusations of carelessness or error. This coverage protects them from financial loss as a result of errors or unmet client expectations.

Do You Need Both Types of Insurance? 

Combining Coverages

In some cases, businesses will need both professional and general liability insurance. Luckily most insurance providers offer bundled coverage options where you can get both for a discounted price. 

Here are a couple examples of business who benefit from both types of protection: 

• Contractors and developers often provide advice in relation to project planning. This presents a need for professional liability insurance. On the other hand, since these professionals perform physical work on people’s properties, a general liability policy is also necessary.
• Someone who’s a graphic designer may want to invest in both types as they probably invite clients into their office from time to time, but also want protection against errors made in their physical work. 

Cost of Not Having the Right Coverage

Without the proper insurance policy, your business risks major financial losses. For example, if you only have professional liability, and someone gets injured on your property, you’ll likely still have to cover their medical expenses out-of-pocket. 

Or let’s say you have general liability insurance, but no professional coverage, and you make an error when giving consulting advice. Unfortunately with no professional liability,  you may have to pay for the costs of a legal settlement stemming from the misinformation.

Factors Influencing the Cost of Liability Insurance

• Business Size and Revenue: Larger organizations typically pay higher premiums due to increased risk and more exposure to large claims.

• Industry: High-risk businesses, such as construction, may incur higher general liability expenses, whereas advice-based industries may have higher professional liability rates.

• Location: Insurance rates vary by state and locality due to changes in laws and overall operational costs. For example, coverage in a big city may be more expensive than in a rural community. 

• Coverage Limits: Higher coverage limits provide more protection, but also raise rates. Businesses that require extensive coverage may pay extra, depending on their risk exposure.

• Claims History: A history of previous claims, indicates a higher risk and usually raises rates. 

EZ.Insure—A Quick and Affordable Coverage Solution 

EZ.Insure is the simple solution for your insurance needs, offering competitive business insurance rates and policies tailored to small businesses. With policies starting for as low as $24.95/month, your business can be equipped with a well-rounded liability insurance package, to ensure you’re fully protected without having to break the bank. 

How to Choose the Right Liability Coverage for Your Business

Steps to Consider

• Evaluate Your Business Risks: Take the time to sit down and list out all of the potential risks that your business might face. Be sure to consider both physical incidents and professional errors. 

• Consider Industry Requirements: Next, think about the typical insurance requirements in your specific industry. Based on industry norms, you should get a pretty good idea of what coverage(s) are necessary. 

• Determine Your Budget: Evaluate how much your business can realistically afford to pay per month in premium costs. Then in turn, consider the level of coverage your business actually requires. While you never want to be under-insured, for a small business, a policy with a hefty coverage limit may not be necessary.

Consult with an EZ.Insure Expert

If you’re still unsure of which coverage type is right for your business, or if you need both, seek the help of an expert insurance agent at EZ.Insure. Working with a licensed agent ensures that no detail is overlooked in regards to your business, so that you’re matched with the most optimal policy type. They’ll also be there to help with every step of the enrollment process, and answer any questions about the selected policies details, so you walk away covered and confident! 

Don’t Leave Your Business Exposed—Get Covered Today!

Liability coverage is critical for protecting your organization from unanticipated hazards and costly lawsuits. Whether you require general, professional, or both forms of liability insurance, the appropriate policy will keep your organization safe and secure.

Ready to get started?  EZ.Insure is here to help! For a fast, free quote, simply fill out a form on our site, or give us a call at (855)-694-0047 today!

Looking for more information on securing your business? Check out our resource library, that’s home to tons of helpful articles all aimed to help small businesses succeed today and for years to come. 

Protection against expensive accidents.

Peace of mind for you and your employees.

And a competitive edge in the restaurant industry.

Let’s get started.

Restaurant insurance is a specific type of business insurance designed to meet specific requirements associated with the food and beverage sector. While it is similar to standard business insurance, restaurant insurance plans focus on protecting against the unique challenges faced in the service industry. This includes issues such as foodborne illness claims, alcohol-related incidents, equipment failures and much more. To combat these particular obstacles, restaurant insurance policies bundle a number of different coverage to form a well-round protection plan.

Types of Coverage Included in Restaurant Insurance

The majority of restaurant insurance plans offer a variety of coverage options, including:

• General Liability Insurance
• Property Insurance
• Liquor Liability Insurance
• Workers’ Compensation
• Product Liability Insurance
• Business Interruption Insurance

Each of these policies plays a crucial role in covering your restaurant from great financial loss. 

But let’s dig a little deeper, to understand why each one is important in its own way. 

General Liability Insurance

Especially in a busy setting like a restaurant, whether we like it or not, accidents happen. In simple terms, general liability helps handle these accidents by covering you against injuries to customers or any damage to their property while on your property. For example, let’s say a customer walks to the bathroom and slips on some grease that an employee accidentally dropped. In this instance, general liability insurance helps by paying for their medical expenses and any legal fees if they choose to file a lawsuit. 

Property Insurance 

Think about what physically makes up your restaurant. This includes your building, the kitchenware, the furniture and any decorations. These are the kind of assets that are protected by property insurance if a natural disaster, fire, robbery or vandalism occurs. If your restaurant suffers from one of these incidents, property insurance provides coverage in the form of replacements or repairs, so you won’t have to pay out of pocket. 

Liquor Liability Insurance 

Does your restaurant serve alcohol? If yes, then you may be held responsible if accidents occur involving intoxicated customers. Whether it’s a physical injury, damage to your property, or even an auto accident occurring after leaving your restaurant, liquor liability coverage protects against these types of claims. More specifically it pays for any damage taking place on the premises and the cost of court if applicable. 

Workers’ Compensation 

Since restaurants are fast-paced workplaces, it’s possible for employees to sustain injuries when they’re working. Medical costs and lost income are covered by workers’ compensation if an employee becomes ill or injured on the job. It is a crucial component of any restaurant insurance coverage because it is also mandated by law in every state except Texas. 

Product Liability Insurance 

As the owner of a restaurant, you are fully responsible for the food and beverages that you serve. If a customer has an allergic reaction or food poisoning as a result of anything they ate or drank, product liability comes in. It plays a large role in the protection of your financial well-being by paying for any medical or legal costs associated with the incident. 

Business Interruption Insurance 

Not only do unexpected events like fires and natural disasters have the potential to destroy your property, they can also shut down your business for extended periods of time. Luckily there’s a type of coverage to help when this sort of thing happens—Business Interruption Insurance. This insurance coverage helps by covering lost income if your restaurant is forced to close due to a covered event. Instead of risking having to close down permanently, with business interruption insurance, you’ll stay afloat and return to your business when the “down time” is over. 

How Much Does Restaurant Insurance Cost?

A number of variables affect restaurant insurance rates. Below is a summary of the factors that could affect your monthly premium:

• Location: Higher premiums may apply to a restaurant located in a high-risk location, such as one that is vulnerable to severe weather.

• Size: In general, businesses that employ more people and have larger properties pay more in monthly premiums.

• Types of Food Served: If your restaurant sells higher-risk food items like sushi or other raw items the risk of foodborne illness increases, which in turn may increase your costs. 

• Annual Revenue: Larger operations naturally present more risks, therefore restaurants with higher revenues may pay more in premiums.

Depending on the specific coverage needs of your business, monthly premiums vary quite a bit. With that being said, restaurant owners usually pay around $175 per month, or $2080 per year for a $1 million business owners’ policy (provides property, business interruption and liability insurance), according to Insureon.

How to Get the Best Restaurant Insurance Policy 

Finding the most suitable restaurant insurance policy is more than simply getting the lowest price; it’s also about finding coverage that meets your company’s specific needs. Here are some suggestions to help you get the perfect policy:

• Customize Coverage Based on Your Needs: Since every restaurant is unique, your policy won’t be the same as the restaurant across the street. More specifically, look to find a policy tailored to your businesses specific risks. For example, if you don’t serve alcohol, then don’t invest in liquor liability insurance. However if you do, this coverage is a must. 

• Check for Coverage Gaps: Be sure to carefully review each policy that you explore and compare, checking for gaps in coverage. Listing out your specific risks and corresponding coverage types ahead of time helps to ensure that nothing is missing.

• Compare Quotes and Consult an Expert: Don’t settle on the first insurance package that you see. Instead compare a number of different options to find the one that fits your business best. EZ.Insure’s all-in-one platform makes it easy to consult with an insurance expert, view policies side by side, and get a quote all in a matter of minutes. This comprehensive approach ensures you can find a policy tailored to your restaurant’s unique needs.

Safeguard Your Restaurant Today

Having the proper insurance coverage is essential for safeguarding your business. Don’t wait until your company is in danger from an unforeseen circumstance. Now is the time to act!

Ready to take the next steps in securing your restaurant’s future? Get a free personalized quote today with EZ.Insure, so you can mitigate costly risks and keep serving customers with confidence. To get started, just fill out a quick form, or call us directly at (855)-694-0047. 

Looking for more actionable ways to ensure your business is protected against the unexpected? Check our resource library, where we have dozens of informational articles, all aimed at helping business owners save money and reach their goals!

Business Hazard Insurance for Fires 

Fires are one of the most serious hazards that any business can face. Not only do they pose a threat to employees’ physical well-being, but they also have the potential to cause irreparable damage to facilities, documents, technology, and really anything else in their path. Fires are caused by a variety of circumstances including:

• Electrical Issues
• Cooking Accidents
• Wildfires
• Chemical Accidents
• Smoking
• And much more…

When it comes to dealing with the aftermath of a fire, business hazard insurance provides coverage for things like:

• Structural repairs and rebuilding.
• Replaces destroyed or damaged inventory.
• Provides coverage for lost wages during the interruption.

Take the state of California for example. In a region that is known for its frequent wildfires, business hazard insurance is a must. While damage from natural disasters, in the aftermath of these events, businesses with sufficient protection will be able to start rebuilding, while the owner’s with no coverage may not be able to recuperate their losses. 

Business Hazard Insurance for Storms 

Storms and severe weather come in a number of forms, all of which can be extremely damaging to businesses and their property. Such events include windstorms, tornadoes, hail, snowstorms, and

 more. During these unfortunate events, businesses face risks like structural damage, broken windows, loose debris, and erosion. While we suggest that all organizations invest in business hazard

insurance, it’s particularly important if your company is in a storm-prone area. In these cases, be sure that the policy includes some sort of comprehensive storm coverage.

In the event of a damaging storm, business hazard insurance usually covers:

• Structural damage caused by winds and hail.
• Broken windows, signage and roofs in need of repair.
• Lost wages and other expenses caused by business interruption. 

Business Hazard Insurance for Water Damage

Water damage can be catastrophic to businesses and while you should do everything possible to avoid these situations, sometimes they’re out of your control. While all policies vary, most business hazard policies cover claims involving water damage caused by leaks or burst pipes.

It’s important to note that business hazard insurance usually DOES NOT cover flood damage caused by rising water from hurricanes or extreme rain. For these circumstances, a separate flood insurance policy should be considered. Having a specialized flood insurance policy working in tandem with your business hazard insurance, ensures complete protection from all water-related incidents. With all that said, when it comes to water damage, be sure to read the fine print of your policy to understand what’s covered and what isn’t. 

Business Hazard Insurance for Lightning Damage

Lightning strikes can cause significant harm to your business. Common damages caused by lightning include burn damage (if the lightning starts a fire), as well as damage to electrical systems and other equipment. The latter generally happens when a power surge takes place, which can affect any electrical infrastructure. Luckily, most business hazard insurance policies protect against lightning damage. In these scenarios, your policy should help to cover:

• Damaged equipment
• Structural damage
• Wages and expenses caused by the business interruption.

Lightning strikes are unpredictable and can happen anywhere, so it’s important to have a comprehensive protection plan in place. In the aftermath of a damaging lightning strike, business hazard insurance will help your organization to recover quickly without facing large out-of-pocket expenses. 

Business Hazard Insurance for Vandalism and Theft

While most of the hazards we’ve discussed involve the weather, remember that not all risks come from natural disasters. Unfortunately, two of the most common business damages are theft and vandalism. When we talk about theft and vandalism, it usually refers to goods being stolen, property being damaged, or defaced in some way.  In most cases, business hazard insurance will protect against such incidents by covering:

• The repair costs of vandalized property.
• The replacement costs of stolen inventory or goods.
• The costs of security upgrades to help avoid future issues.

Protect Your Company From The Unexpected

Whether it’s a fire, tornado, break-in, burst pipe or power surge, business hazard insurance will protect your organization from financial ruin. Without adequate protection these distatars can

 result in huge out-of-pocket expenses, or the need to shut down for an extended period – both of which could destroy your business. When considering your needs in relation to business hazards, it’s important to understand what you’re already covered for. Then, based on a variety of risk factors such as the nature of your business and your geographic location, consider adding on additional protection. 

Don’t wait for disaster to strike. Instead, be prepared and get a free quote from EZ.Insure. Our easy-to-use comparison platform allows you to view competing plans side-by-side, ensuring that you find something that matches your budget and needs. We also have a library of articles, all aimed at helping business owners save money and stay protected. So what are you waiting for? To get your quote just enter your ZIP code at the top of this page, or call us at 855-694-0047.

Commercial insurance, also known as business insurance, is essential to protect your company against a variety of risks. However, a question often arises— does commercial insurance cover vehicles? Understanding the various aspects of

Understanding Commercial Insurance 

Commercial insurance is a type of comprehensive policy used by business owners to protect organizations from various financial losses. Losses include things like property damage, theft, workplace injuries, liability claims, and much more. Oftentimes commercial insurance policies are bundled to include a variety of different coverage types. These comprehensive policies are often referred to as business owner’s policies (BOPs) and they typically include: 

• Property Insurance: Provides coverage for damage to equipment, buildings or any other assets owned by a business. Typical accidents covered include fires, theft and natural disasters. 
• Liability Insurance: Protects companies from any claim involving injuries or property damages caused by the businesses employees, products or operations.
• Workers’ Compensation: Covers the medical costs and a portion of lost wages to employees who get injured or sick on the job.
• Business Interruption Insurance: If a business is forced to close down temporarily, this coverage will provide compensation for lost income. Examples of reasons a business might need to close down are natural disasters, or fires. 

There are also other more specialized types of commercial insurance that can be crucial depending on the industry you work in. These include professional liability insurance and cyber liability coverage. Additionally, companies that regularly use vehicles in their daily operations need specialized coverage too. This is where commercial auto insurance comes into play. 

What is Commercial Auto Insurance? 

Commercial auto insurance is designed to protect vehicles used for business purposes. Unlike personal automobile coverage, it covers a broader range of business-related risks.

For example, if you have a fleet of freight trucks, delivery trucks, use your personal vehicle for work purposes, or have staff driving company cars, a commercial auto coverage will ensure that these vehicles are fully protected. There are also many cases where commercial auto insurance is actually required by law. This includes: 

• Company-owned vehicles being used for deliveries or client visits.
• Any personal vehicles that are commonly used for business purposes.
• Heavy-duty vehicles like semi-trucks or commercial trailers.
• Vehicles that employees drive on behalf of a business.

Keep in mind that every state and industry has different rules and regulations, so we also recommend looking up your local laws to avoid legal issues. 

When Does Commercial Insurance Cover Vehicles? 

Although business insurance covers a variety of risks discussed above, vehicle coverage is usually excluded. There are some cases where a BOP or general liability policy may offer some coverage for vehicles occasionally used for business purposes, but this is not common. Even in these cases, the coverage is usually limited and won’t cover vehicles that are used on a regular basis by the business. 

With all this being said, businesses using vehicles in their operations regularly need specialized commercial automotive protection. Otherwise, you run the risk of paying out of pocket in the case of an accident. 

What Does Commercial Auto Insurance Cover? 

A commercial auto insurance policy provides complete coverage for vehicles utilized for business purposes. Typical coverage includes:

• Liability Coverage: This coverage protects against bodily harm or property damage if you are the driver at fault in an accident. 
• Physical Damage Coverage: This coverage includes both collision and comprehensive coverages for vehicle damage. Collision insurance covers damage to your vehicle from hitting another object or vehicle, regardless of who’s at fault. Comprehensive coverage protects your vehicle from events outside of your control including theft, vandalism, fire, an animal being hit and more.  
• Uninsured/Underinsured Motorist Coverage: This policy protects your company if an employee is involved in an accident with an uninsured or underinsured driver.
• Employee Coverage: Provides protection for employees who drive company-owned automobiles.
• Additional Coverage Options: To assure complete coverage, you can add services such as rental reimbursement and roadside assistance to your plan. 

Do You Need Commercial Auto Insurance? 

Deciding on whether or not your business needs commercial auto insurance depends solely on how vehicles are used within your daily operations. If the company uses vehicles for transportation, delivery, or regular travel, a commercial vehicle policy is essential. On the other hand, relying entirely on a personal auto policy for business purposes leads to big financial risks. 

If you still aren’t sure about your business and it’s needs relating to auto coverage, ask yourself the following questions: 

• Do you or your staff drive for business purposes? 
• Is your personal vehicle routinely used for work-related purposes? 
• Are there any company-owned vehicles in your fleet? 

If you answered yes to any of these questions, commercial auto insurance is likely a good investment.

Protecting Your Business: Steps to Take

To guarantee that your business is properly insured, take the following steps: 

• Examine your current insurance policy to detect any gaps in vehicle coverage.
• Assess your company’s vehicle usage to decide whether a commercial auto policy is required.
• Consult with an insurance agent to create a commercial auto insurance plan that is tailored to your specific business needs.

Final Thoughts

Commercial auto insurance is an important aspect of protecting your business, but typical business insurance policies tend to fall short. Whether you use personal cars for business or operate a fleet of commercial vehicles, you must have the proper insurance in place. Understanding the significance of commercial auto insurance can help you protect your organization from vehicle-related dangers and ensure your company is protected from all angles. 

While researching and shopping for insurance policies can be daunting, it doesn’t have to be. Using EZ.Insure to compare quotes and coverage types makes the process easy. We offer side-by-side comparisons, so no matter how big or small your business is, they’ll be something for you. We also have a team of dedicated insurance professionals who are always on hand to walk you through the process. So take the next step in protecting your business and its assets today by visiting us at EZ.Insure. To get started, simply enter your ZIP code at the top of the screen or give us a call at 855-694-0047.

One of the most important concerns for both workers and businesses is the health and safety of their workforce. Workers’ compensation insurance and occupational accident insurance are two important insurance policies. They each come into play when it comes to the protection and safety of the workplace. In spite of the fact that both offer financial aid in the event of a workplace injury, there are substantial differences between them in terms of their structures, coverage, and the conditions under which they are applicable. 

Workers Compensation

Companies that employ a minimum number of workers or employees who work a specific number of hours per week as defined by law are required to comply with the workers’ compensation requirement, which is a state-regulated requirement. The minimum number of employees varies from state to state. In some states, it means one or more employees, while in others, it means five or more. For more information on state-specific workers’ compensation requirements, visit the U.S. Department of Labor’s Worker’s Compensation page. 

Workers’ compensation provides payments for wage loss, medical treatment and related expenditures, and rehabilitation for employees who sustain an injury on the job or who become ill as a result of elements that are present in their workplace environment. In addition, the insurance policy provides coverage for employer liability, which means that businesses are afforded some degree of protection in the event that an employee decides to file a lawsuit in connection with their workers’ compensation claim. More frequently than not, the costs of legal defense are covered up to the limitations of the policy. It is still the responsibility of employers to ensure that their employees are working in a safe environment.

Occupational Accident Insurance

Occupational accident insurance is a policy that provides benefits to independent contractors and employees who are not protected by a workers’ compensation program. This sort of insurance may give medical, disability, and accidental death and dismemberment benefits. But it is not state-regulated, unlike workers’ compensation. Wage loss benefits, medical expenditures, and rehabilitation costs for workers or insured independent contractors may be paid by policies, but only up to policy limits. Employers can determine their coverage and deductible amounts based on their own risk tolerance.

Workers’ compensation is more expensive for businesses, but it provides more complete coverage, particularly in terms of their own liability, which is not covered by occupational accident insurance. Employers who purchase occupational accident insurance may be exempt from the mandatory workers’ compensation system in several states. While the employer still has a legal commitment to employees who are injured or killed on the job, it is significantly less expensive than workers’ compensation. Employers receive statutory benefits through workers’ compensation, however when purchasing occupational accident insurance, you must make the following decisions:

• The limit of liability to carry per accident.
• The deductible to assume per accident.
• The level of disability coverage to provide.
• The level of death benefits to provide.

Companies will still be liable to their employees for legal responsibilities that are not covered by occupational accident insurance. Choosing the wrong coverage selection might expose a company to significant financial losses – a danger that workers’ compensation insurance protects against.

How They Differ

Workers’ Compensation

• Mandatory Coverage – Workers’ Compensation Insurance is a state-mandated program that mandates employers to provide coverage for employees who are injured or ill at work. The standards and regulations may differ from one state to the next.
• No-Fault System – Workers’ Compensation is a no-fault system, which means that employees are eligible for payments regardless of who caused the job accident. This method is intended to give injured workers prompt compensation without the need for lengthy court battles to identify fault.
• Eligibility – In the US, workers’ comp is generally available to all employees, regardless of fault or negligence. It is mandated by state laws to ensure that employees are protected in case of work-related illnesses or injuries. Whether they’re a full-time employee, part-time worker, or seasonal staff, they’re typically covered under workers’ compensation. That is if your company meets the legal requirements.
• Covered Benefits – Workers’ Compensation often pays for medical bills, rehabilitation costs, and a portion of an injured employee’s salary while they are unable to work. Long-term compensation may be awarded in the case of permanent impairments.
• Employer Immunity – When covered by Workers’ Compensation Insurance, employers are generally protected from lawsuits made by employees for occupational injuries. This exemption is a trade-off designed to expedite the procedure and ensure that injured workers receive early compensation.
• State Regulated – Workers’ Compensation programs are governed by state agencies. Each state has its own set of laws governing coverage criteria, benefits, and claim management.

Occupational Accident Insurance

• Voluntary Coverage – Occupational Accident Insurance is often bought by employers to provide additional protection beyond what Workers’ Compensation may provide. 
• Fault Considerations – Occupational Accident Insurance, unlike Workers’ Compensation, usually considers fault when deciding compensation. Coverage may be limited if an employee is deemed to be at fault for their injury.
• Flexible Coverage – Employers can tailor Occupational Accident Insurance coverage to their specific requirements. Medical bills, disability benefits, accidental death benefits, and other benefits may be covered. The scope of coverage, however, is determined by the specific policy chosen.
• Eligibility – Occupational Accident Insurance is designed specifically for workers who are not eligible for workers’ compensation, such as independent contractors and other workers. Due to the fact that they are not typically covered by regular workers’ compensation plans, individuals who are self-employed, freelancers, and gig workers are examples of individuals who can benefit from occupational accident insurance. These non-traditional workers, who may be exposed to a variety of unique dangers and difficulties, are afforded an additional layer of protection by occupational accident insurance. 
• Excludes Certain Risks – Certain hazards or activities may be excluded from coverage under occupational accident insurance policies. And employees may be required to meet specified requirements to be eligible for compensation.
• No Employer Immunity – Occupational Accident Insurance, unlike Workers’ Compensation, does not protect companies from employee lawsuits. If an employee has this coverage and suffers a working injury, they maintain the ability to sue their employer.

Choosing The Right Coverage

• Consider Legal Requirements – Employers must comply with state-mandated Workers’ Compensation requirements. Failure to do so can result in legal consequences. While options, many consider Occupational Accident Insurance to be an additional layer of protection.
• Evaluate Risks and Budget – It is important for employers to evaluate the dangers that are associated with their industry as well as the financial repercussions that could result from injuries that occur on the job. It is possible for occupational accident insurance to provide supplemental coverage that is tailored to specific requirements.
• Communicate With Your Employees – Important is the transmission of the available insurance coverage in a clear and concise manner. It is important for employees to be aware of their rights under Workers’ Compensation as well as any additional coverage that may be given by Occupational Accident Insurance.
• Consult With An Insurance Agent – When it comes to navigating the complexity of Workers’ Compensation and Occupational Accident Insurance, it might be helpful for companies to seek counsel from insurance professionals. They have the ability to help select the coverage that is best suitable for the specific conditions of your company.

Wrapping Up

EZ is the place to go if you are seeking workers’ compensation insurance. We take great satisfaction in making your shopping experience as simple and stress-free as possible. Not only do we provide our consumers with our undivided attention, but we also provide entirely tailored service and quick outcomes. Once you have completed our form, you will immediately be provided with free estimates from one of our representatives. A person who will comprehend your requirements from the very beginning. To ensure that you make the greatest choice possible and obtain the best coverage at the best price, we want to make sure that you do so. Make sure you check out your quotes right away because none of our services cost you anything.

For any questions, please do not hesitate to call us at (855) 694-0047. You’ll speak with a local insurance agent that is able to provide answers to all of your questions. In addition, we can assist you in locating the workers’ compensation policy that is most suitable for your company. Or for free instant quotes just enter your zip code into the box below.

If you’re running a business, you know you have to have insurance to protect against a variety of physical threats, like injury and property damage. But if you use any type of technology in your business, you should be aware that you’ll also need to protect against threats related to that tech. These risks range from hacking to data leaks, and they can be devastating for your business.

To guard against these threats, many businesses choose to supplement their business insurance coverage with cyber liability insurance. Broad coverage provided by cyber liability insurance can help protect your business from a variety of dangers associated with the use of technology. 

Jump To:

• Types of Cyber Liability Insurance

• What Cyber Liability Insurance Doesn’t Cover

• The Cost of Cyber Liability Insurance

• How Much Cyber Liability Insurance Is Enough?

• FAQs

• Why You Need Cyber Liability Insurance

Types of Cyber Liability Insurance

Cyber liability insurance typically comes in the form of first-party or third-party coverage; each of these policies offers protection to businesses under various conditions. But it’s important to note that if you need a lot of cyber coverage, you should think about including technology errors and omissions coverage, especially if your company is in the technology industry.

First-party coverage 

This type of cyber liability insurance covers any immediate costs resulting from a cyber attack, including:

• Cost of informing workers and clients
• Fixing any damaged hardware or software
• Preserving your brand’s reputation through marketing and PR measures
• Costs of business interruption and lost revenue while operations are disrupted
• Extortion funds or ransom money
• Other expenses, such as paying for your customer’s credit monitoring

Third-party coverage

This type of cyber liability insurance covers costs associated with lawsuits brought on as a result of a cybersecurity attack. In general this includes:

• Lawsuits alleging that you violated the privacy of clients or workers
• Media responsibility lawsuits, such as libel or slander or copyright infringement
• Contract-breach or negligence claims
• Court costs and attorney fees related to legal actions
• Court rulings and settlements

If your company retains client data, you should think about purchasing a cyber liability insurance policy, because general liability insurance does not provide coverage for liability claims resulting from data breaches.

Technology errors and omissions

A technology errors and omissions (E&O) policy will cover your business if an error on your part leads to a cybersecurity issue in a customer’s business. If your company develops technology products or offers technology-based services, you should think about purchasing this coverage. Tech E&O typically covers legal fees, court costs, and judgments or settlements, much like cybersecurity liability insurance, but only in specific situations involving goods or services.

First-party or liability insurance, for instance, would offer protection if a customer’s financial information was stolen from your server. But, if you create an accounting software application with a bug in the coding, and your customer’s data is stolen from their server as a result, that would be covered by tech E&O.

What Cyber Liability Insurance Doesn’t Cover

It’s important to read your cyber liability insurance coverage completely and understand any exclusions to your policy.

All of the following are frequently excluded from cyber liability insurance:

• Bodily injury or property damage claims – Claims for bodily injury or property damage are not covered by cyber liability insurance. A general liability policy can help in these situations.
• Property loss – A cyber policy will not usually provide coverage for the loss of a piece of property, such as a phone or computer.
• Criminal activity – Typically, fraud, robbery, employee theft, and other crimes are not covered by a cyber liability policy. 
• Social Engineering – Cybercriminals can use social engineering to lure their victims into sending company money. Social engineering is not always covered by cyber liability insurance. This might have a lower coverage cap or be an add-on that is optional.

When you buy a cyber liability policy, you consent to keep up the necessary security precautions to avoid a cyber incident in the first place. Coverage could be declined if you don’t observe these security precautions. For instance, if your employee unintentionally clicks on a link in an email, causing malware to damage your business’s computer systems, an insurance provider may refuse coverage if they find that you didn’t install any anti-malware software.

This example demonstrates the significance of understanding what you’re committing to when purchasing cyber liability insurance, and of having appropriate security measures in place. You can implement these security measures yourself, or you can get up to speed with the aid of outside security companies.

The Cost of Cyber Liability Insurance

A year’s worth of cyber liability insurance can cost as little as $500 or as much as $50,000. You should be able to find a cyber liability policy that fits your budget by customizing coverage to your company’s needs.

The following factors affect how much cyber liability insurance will cost:

• Coverage limits – Your insurance policy will cost more the more extensive and complex your coverage requirements are. For instance, your insurance will cost more if your business employs several servers or keeps a lot of client data.
• Data access – You can cut costs by restricting access to sensitive information. For instance, it might be beneficial if you limit data access to senior staff only. You can also reduce costs by hiring an on-site security specialist.
• Security measures – Your rates can be reduced by taking effective security precautions, including setting up network firewalls, antivirus software, and password-updating programs.
• Your industry – In comparison to a brick and mortar company with a low-traffic website, an online-only business will face greater cyber dangers and pay more as a result. In addition, companies in specific sectors—such as healthcare and accounting—that hold the most sensitive sorts of data will likewise bear a higher cost.
• Claims history – Your insurance carrier may raise your rate if you have a history of filing numerous claims.

Cyber liability insurance is more expensive than other types of business insurance, since the risks it covers often results in higher claims. 

How Much Cyber Liability Insurance Is Enough?

A cyber event can cost a lot of money when you add together all the expenses: you would need to manage the crisis, address customer concerns, handle customer service issues, repair harmed hardware or software, recover lost revenue, and pay the expense of any legal claims. Settlements or judgments could easily surpass six figures based on the extent and severity of a cyberattack, as well as the cost of data recovery. 

To calculate how much cyber liability insurance you require, evaluate your company’s risk. Different industries need different amounts of coverage. For example, a small IT enterprise would typically purchase a cyber liability insurance policy with a $1 million per event limit, a $1 million aggregate maximum, and a $1,000 deductible. Any company that manages a few thousand records would have full protection with this level of coverage, if a data breach costs roughly $250 per client or customer record.

A greater coverage limit might be a wise choice for high-risk companies like those that specialize in data storage. Most policies have a $5 million maximum coverage limit, but you can talk to your insurance company if you think you need more protection.

You also have to keep in mind how much cyber coverage your clients may need. Even if you have coverage for lawsuits resulting from data breaches under your errors and omissions insurance, the goal is to stay out of court. Make sure your customers have a risk management strategy that accounts for the expense of a data breach.

Your clients will be less likely to sue your tech company in an effort to recover their damages following a data breach if they carry cyber liability insurance. Encourage your clients to buy cyber liability insurance. Or require it before you start on a risky project to safeguard your company against client litigation.

You can change the recommended coverage limit in a work contract if you require clients buy cyber liability insurance.

Why You Need Cyber Liability Insurance

Hackers target personal identifiable information (PII) or protected health information (PHI) that you store on your business’s computers or servers. To react quickly to a data breach or cyberattack, it’s essential to protect your company with cyber liability insurance. So, if your business uses the internet to function or store data in any way, cyber liability is a necessary protection. 

The most common cyber liability claims are:

• Data breaches – A data breach occurs when a hacker obtains PII from customers. This is the most common type of corporate cyber insurance claim, and also has the highest overall losses.
• Cloud hacks – Phishing scams are used by hackers to access cloud-based accounts. Once inside, they switch between different customer accounts using the cloud infrastructure.
• E-commerce shutdowns – It’s not just about money for hackers. The goal for certain hackers is to shut down your company. They can entirely shut you down if they can hack into your business.
• Account takeovers – Account takeovers are one of the most common cyber insurance claims. These hacks involve criminals attempting to access your bank or credit card accounts in order to carry out fraudulent activities.
• Malware – Malware attacks are common cyberattacks in which the victim’s system is compromised by malware, or malicious software. Malicious software, also known as a virus, includes several sorts of attacks, including ransomware, spyware, and command and control.

The market for cyber insurance is expanding, and for good reason. Cyberthreats have increased in number over the years. For instance, the FBI reported that cybercrime increased by 300% in 2020.

So, if you’re running a small business that uses technology in any way, we advise that you purchase cyber insurance. Before you purchase a policy, take into account the expenses and the ways you can save money on your coverage.

FAQs

• Will other types of insurance cover cyber liability?

Common business insurance policies like general liability, errors and omissions, property, or crime insurance may offer some coverage but it’s limited. As the internet grows, cyber risks are more detrimental to your business. So to make sure you’re getting properly covered it’s best to get cyber liability instead of hoping your limited coverage on other policies will be enough.

• Will my premium go up after a cyber attack?

Typically yes, insurers will raise your premiums after a claim.

• What isn’t covered by cyber liability insurance?

There are several things cyber liability won’t cover. It doesn’t cover bodily injury or property damage claims since these things aren’t cyber related. It also doesn’t cover property loss even if the item lost is a phone or a computer with sensitive information on it. Additionally if one of your employees uses protected information to commit fraud or theft then you will also not be covered. 

• What counts as a cyber attack?

A cyber attack is when someone outside of your business breaks into your private network to shut it down and steal sensitive information about your company, employees, and clients. They usually hold this information hostage for a ransom in exchange for not releasing the information to the public.

Get Cyber Liability Insurance with EZ.Insure

Don’t let your data go unprotected any longer. Instead, get cyber liability insurance with EZ.Insure! Our platform offers free, no-obligation quotes, side-by-side plan comparisons, and 24/7 access to licensed insurance experts. To get started, simply enter your ZIP code below or give us a call at (855)-694-0047.