Owning your own business can be a liability landmine. Just one mistake can mean the end of the business that you’ve invested so much time and money in. The biggest mistake you can make is not having the right commercial insurance coverage. EZ knows you worked hard to start your business, and we want to help you keep it going strong. We can guide you through some of the common mistakes business owners make, and the ways we can keep you protected against them.
A cyber attack can leave you feeling violated, scared, and confused, and it can also ruin your reputation.
Not Protecting Your Business Online
So much of our business is conducted online these days, and not having cyber liability insurance is one of the biggest mistakes you can make. Not only are there a lot of scammers out there working hard to get your financial information, but anyone with access to your company’s accounts – including employees – can steal information and create data breaches. A cyber attack can leave you feeling violated, scared, and confused, and it can also ruin your reputation. If customers’ data is breached, then you will lose their trust, their business, and any future business.
Malware is one of the biggest threats when it comes to cyber security. In 2018, malware cost companies upwards of $2 million, which was an increase of over 10% from the previous year. To keep your business protected from this threat, EZ.Insure offers cyber liability policies that cover:
Lost or damaged electronic data
Computer operations interruption
Privacy & Notification to customers and other affected parties
Lawsuits (in certain types of policy)
Not Protecting Your Workplace
Another major mistake business owners make is not taking into account all of the things that can go wrong at their place of business. Accidents and natural disasters happen. Customers or employees can get hurt at your business, meaning you could end up being sued. A storm could come along and rip through your building. If you are not insured against all likelihoods, not only could you lose your business, but you could go bankrupt, as well.
We’re a business, too, and we get how scary the thought of losing everything can be. That’s why we’ll compare quotes for you on the most important types of commercial liability insurance, like:
General Liability – protects you against lawsuits claiming bodily injury or property damage. It also provides coverage for personal and advertising injury like libel or slander.
Property Liability– protects everything in your business from risks such as fire or theft. There are commercial insurance packages available that will bundle liability and property coverage.
Workers Comp– covers medical expenses and lost wages for an employee who is injured at work. This type of coverage is required by individual states.
Not Delivering on Your Promises
Finally, don’t make the mistake of assuming every customer is going to be satisfied with you and your business. Sometimes you try to offer the best possible service or advice to your customers, but you just fail to deliver. If you break a contract, give advice that leads to loss, or don’t complete a project, for example, then you could end up facing a lawsuit. To protect yourself and your business from these types of claims, you need to have professional liability insurance.
Whether you are starting up a business, or already have one and are looking into commercial insurance, then EZ’s got you covered. We will compare quotes of all the types of insurance policies that your business needs, and will help you choose the best ones for you. Let us help you protect the business that you worked so hard to build. To get free commercial insurance quotes, enter your zip code in the bar above or to speak to an agent call 888-615-4893.
You’re not starting any ordinary small business. You’re building a startup. Your goal is to grow and, in order to do this, you not only need a solid business plan, but also protection for everything that you’re building. Startups are inherently risky, so it is extremely important that you get the right commercial insurance coverage.
Insurance for the First Stages
Startups are all about investment, and you need to think of commercial insurance as another investment to grow your business.
If you’re in the first, or seed, stage of building your startup you are probably excited – and nervous about everything that’s to come. Maybe you’re not thinking about insurance, or think that it’s something that can wait until you’re further along in the process. Nothing could be further from the truth.
Startups are all about investment, and you need to think of commercial insurance as another investment to grow your business. Without it, you won’t be able to attract the best employees or convince investors that you are serious about your venture and are planning ahead for the long run. Even before you have customers, you should have the following policies:
General Liability – something that all businesses should have, this type of insurance protects you against lawsuits claiming bodily injury or property damage. But did you know it also provides coverage for personal and advertising injury like libel or slander?
Commercial Property – if you’ve got office space, then you need this type of policy to protect everything in it from risks such as fire or theft. There are commercial insurance packages available that will bundle liability and property coverage.
Workers Comp– if your startup has or plans on having employees, be aware that this type of coverage is required by individual states. It covers medical expenses and lost wages for an employee who is injured at work.
Tech E&O vs Cyber Liability
Once you’re past that first stage of getting your initial funding, setting up your space, and hiring your employees, it’s time to start thinking about what happens once you are up and running. Now you have customers, and a whole new set of risks.
The above type of insurance policies apply to all businesses, but you may need some specialized coverage for your startup. If you’re dealing with any kind of tech, as many startups do, there are two types of policies you should look into: tech errors & omissions (E&O) and cyber liability insurance. They may sound similar, but they cover different things.
Tech E&O – If you’re a business selling a physical product, then you need product liability in case a product fails. If you’re a firm offering financial or legal advice, then you need errors & omissions to protect yourself against claims of financial damage. If you’re a tech startup, then you need tech E&O. This type of coverage protects your company in the event that one of your tech-based products fails. If you are developing or licensing software, it is important to note that the insurance industry considers software a service and not a product. Because of this, you will need tech E&O, and not the same type of product liability coverage that might be sufficient for other businesses.
Cyber Liability – There is one very important thing that that tech E&O doesn’t cover: third-party data breaches. With all the risks of cyber crime today, this type of insurance is essential if you store any kind of customer data.
While tech E&O covers the failure of software, cyber liability covers the loss of private third-party information. Depending on your startup, you may need both to be fully covered.
As You Grow
If your startup is taking off, congratulations! You’re growing, and are probably looking for more investment and taking on a board of directors. In this case, you’ll need another specialized type of coverage: Directors & Officers insurance.
This type of insurance covers both your business and your management, including their personal assets. It covers:
Theft of trade secrets
Misrepresentation, in the case that investors feel they were givenDirectors & Officers Insurance protects you in the case of misrepresentation.
misleading information, leading to loss
Wrongful acts, covering anything that managers do in their professional capacity that stakeholders deem “wrongful,” and that results in a loss
Having D&O is important for attracting investors, who will feel more confident placing their trust (and money!) with you if you have comprehensive coverage. Your board members/managers will also feel confident making decisions without risk of personal liability.
Startups are unique among small businesses.They’re riskier, but they have more potential for growth. If you’re one of the few who have the vision and the drive, make sure that you protect everything you’re building. And remember, EZ.Insure is here to help you sort out your commercial insurance needs. We’re unique, too! We want your startup to succeed and will work with you to keep you covered. Our services are always free and nobody will ever hound you with endless calls. You have enough to worry about! To get started simply enter your zip code in the bar above, or you can speak to an agent by calling 888-615-4893.
Do you know everything you need to know about Worker’s Compensation? It’s not a subject many people discuss at the dinner table, but it’s incredibly important to have when running a business in case someone is injured. A small thing like a loose nail or an unstable walkway could spell trouble.
It’s easy to be happy when you know you’re covered!
Before an accident happens, it’s imperative for a business owner to understand the terms of Worker’s Compensation coverage, how to qualify as an employee, what it covers, and what it will cost you.
What Is “Worker’s Comp?”
This agreement states that as long as an employee receives wage replacement and medical benefits, the employee will not sue the company for negligence. Meaning, if you’re injured on site due to something workplace related, you’ll be covered for the amount of work you miss plus hospital bills. But, you cannot sue the company specifically for failing to take proper care. This protects employers and employees.
It’s state-mandated, and the particulars change based on your location. EZ.Insure’s agents are familiar with this information, local or not, so by calling us, you’re saving some time.
Good news is, safety regulations are solid nowadays.
Your employee may have questions for you during this time. EZ.Insure will give you the knowledge to answer securely.
How Can Your Employee Qualify?
For an injured employee, there are only four checkboxes to qualify:
You must be employed by the company.
Your illness/ injury must be work-related.
Your case must fall in state guidelines.
The employer must have Worker’s Compensation insurance.
What Is / Is Not Covered by Worker’s Compensation?
Workers Compensation insurance covers most workplace injuries, but you may be refused assistance if your injuries are self-inflicted, occurred during a crime, or if your actions during your sustained injury violated company policy. For example, if your employee happened to sustain an injury while robbing you, rest assured their injury most likely won’t be covered.
The injured employee doesn’t need to be injured “on-site” to be covered. Worker’s compensation can also come into place when your injury is sustained, and it’s job-related. This could be if your company plans a trip overseas for a meeting, and your employee happens to break a limb during the outing.
When it comes to your medical expenses, you’ll find support with diagnosis and treatment. Depending on your state, it can also provide disability payments, rehabilitation, or retraining.
This should provide ample cushion for your employees to recover and return to work.
What Are the Costs?
The average cost of a worker’s compensation claim is $38,000 (from 2005). This is a combined total of both the medical side and loss in productivity. That’s a down payment for a house or a mid-size car.
For a company, the average cost per $100 in employee wage ranges from $0.75 to $2.74. It doesn’t seem that bad, but this does depend on the state. If you’re looking into getting this for your company, contact your local office to get specific information.
Do Worker’s Compensation Costs Change Per Business Type?
Depending on what your company does is how much you’ll be quoted for worker’s compensation.
Depending on your company, the money outflow is going to fluctuate. For example, in the office building, your cost per $100 goes down to about $0.12. It doesn’t sound that bad, but it’s because injuries happen less often in this environment.
If you’re a painter or a landscaper, this average jumps up to $7-9/$100. You’ll have to take a look into the work you’re doing, and how it may affect an employee. Your business needs a strong hand with inside knowledge to provide you with the best quality insurance.
EZ.Insure has the experience to help you excel. Your agent will answer any questions you have, compare different plans for you, and even sign you up when you’re ready, free of charge and without having to worry about being hounded by endless calls. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure, or calling 888-350-1890. EZ.Insure makes the entire process easy, and quick.
