Why would you put so much time and expense into starting your own business, and then not protect that investment? The answer is that you would not. Business insurance is not an option; it is a necessity.
If you are home based, do not assume that your business is covered homeowners or renters policy. If you have commercial property, your landlord’s policy will probably not cover your liability insurance.
Make it a point to work with an agent that has experience working with small businesses. A good agent analyzes your needs, evaluate the risks and help you find ways to keep the cost down. It’s also important to sit down every year with your agent and talk about the way your business is evolving so that you can make sure that your coverage is doing the same.
Here are a few types of business insurance that you might want to ask your agent about:
Errors and Omissions Insurance - This type of insurance is also known as professional liability insurance. It protects your staffing service when you, your staff, or your employee is accused of making an error that causes financial loss to your client’s company. Court costs and lawyer fees can get expensive.
One point to ask your agent about is occurrence-based or claims-based insurance. This can change whether or not you are even covered for the incident.
Fidelity Bonds - Fidelity bonds protect you if an employee steals client property or funds. They also cover losses if that employee steals from you. Another benefit of this insurance is that it adds credibility to your business and increases client confidence in your employees.
There are three kinds of coverage: individual bonds, schedule bonds, and blanket bonds. Individual bonds cover each employee separately. Schedule bonds cover employees according to their position in your company.
In other words, more responsibility requires an increased bonding amount. Blanket bonds cover all your employees together.
General Liability Insurance - General liability insurance will protect your company against accidents and injury that might occur at a worksite or your office. The standard amount of liability insurance is $1,000,000.
You may think that is excessive, but it is possible to meet and exceed that limit. You may be liable for bodily injuries to criminals, customers, guests, delivery people, and other outsiders. Also make sure that you have coverage in place for clients’ property or equipment that your employee may have under his or her care.
Remember, insurance is not optional in some states. You will still have to check with your state guidelines in order to find out if you need insurance. It is always in your best interest, however, to get the insurance anyway. The worst case scenario is that you are covered if an incident should arise. You may also want to consider legal insurance if nothing else. Prepaid legal services are a great option for many bounty hunters who may need some legal advice or help along the way.