What Your Business Insurance May Not Protect Your From
Running a business can be unpredictable, yet you do your best to prepare with comprehensive business insurance policies. Unfortunately, however, even the most comprehensive policies may not offer sufficient coverage against some losses. Today’s blog post aims to address what doesn’t typically fall within these coverage gaps and how best to address them.
Product Liability Coverage
Those selling products should consider investing in product liability coverage to guard themselves against lawsuits resulting from injuries and property damages caused by defective goods, which could place their business at risk without adequate protection. Without it, your business could be swimming in deep waters without a lifeboat with all the lawsuits coming your way.
Fines and Penalties
Most business insurance policies do not cover fines or penalties that result from noncompliance with laws or regulations. Although in certain circumstances an umbrella policy might provide coverage in such instances. It should be noted, however, that such protection usually only kicks in once all other available policies have been exhausted.
Employee Injury and Illnesses
Employers should ensure their business is covered in case an employee becomes injured on the job or becomes sick due to their work by investing in workers’ compensation insurance policies to safeguard against potential claims against their business.
Intentional or Illegal Acts
Most policies do not cover losses caused by intentional or illegal acts performed by an insured party, even when these acts may seem harmless depending on their context. It’s important to remember that even seemingly harmless behavior could be considered intentional depending on its circumstances.
Cyberattacks & Data Breaches
Cybersecurity incidents can cause both financial and reputational harm for businesses, yet many standard business policies don’t include coverage for this risk. However, you could acquire separate cyber liability coverage.
Businesses employing employees in positions of tryst should consider purchasing employee dishonesty insurance as protection against losses related to fraud, embezzlement and other forms of employee misconduct that might not be currently covered under your standard business insurance.
Damages Due to Truck Accident
Truck accidents can have devastating repercussions, from property damage and business losses to personal injuries and even death. Your policy may cover some expenses related to the accident. However, if you enlist the help of a truck accident lawyer, they will fight to get you the compensation you are legally entitled to.
Suits Filed by Third Parties
In the event that your business is sued by a third party, an insurance claim should usually cover legal fees and related expenses. However, most policies have limits on their coverage for such claims. Should the costs of defending yourself exceed these thresholds, out-of-pocket payments may become necessary for the remaining costs.
An insurance policy that meets your business’s specific needs and provides financial protection in case of loss is essential for its survival. By becoming familiar with different types of coverage available and how they work, it will enable you to ensure you have adequate protection in place for your organization. Speak with an agent if you need help selecting an ideal type of policy; their advice can give you peace of mind that your enterprise will remain protected should something unexpected occur.