Smart Insurance Policies for Small and Medium Businesses

Smart Insurance Policies

For the owner of a small or medium-sized business, it’s important to purchase a business insurance policy that addresses the many risks you face. Combining different policies into one comprehensive package is the most cost-effective solution.

Business Owner’s Insurance Policy

The BOP insurance policy is geared toward protecting your business against many risks. A standard package typically includes the three types of insurance listed below, but add-ons may be purchased to cover other concerns as well. It’s critical to thoroughly examine the risks your business faces and discuss those concerns with your insurance agent. That way, you will be able to determine the best coverage for your particular needs.

  • General liability – When a client or customer files a claim against your company due to damages or injuries, this policy will cover the legal fees and settlements.
  • Property – This policy protects against damages to your property, including the building, equipment and inventory.
  • Business interruption – This insurance protects when a devastating event, such as a fire or weather-related issue, force you to disrupt operations for a while. The policy will cover a number of issues, including operating expenses and the costs involved in a temporary move. It also reimburses for lost profits and loan payments.

The BOP insurance policy is a smart way for the small business owner to keep costs down while protecting their investment.

Risk Management and the Code of Ethics for Lawyers

Risk Management

Attorney professional responsibility is one of the more important components involved with running a firm. When the men and women who work for you follow the appropriate code of ethics for lawyers at all times, it can make your life a lot easier. However, one who breaks from the rules or makes a mistake that violates these codes can put your entire establishment in a very precarious position. This is why you must hold your team accountable at all times for how each person behaves while practicing law.

Basic Conduct

There are several ways to go about establishing protocol for attorney risk management. First, it can be crucial to make sure each member of your team is familiar with the code of conduct established by the specific state your business operates within. Each state has different rules for conduct, so ensuring each person is on the same page is important for your peace of mind. Naturally, some rules will come up in all states. For example, confidentiality is always a huge concern. Other points that tend to appear in the code of conduct include:

  • Protecting sensitive information of clients and firm
  • Performing with utmost competence
  • Exercising excellent and professional judgment

Develop a Strategy

When all of the people who work for your firm follow the rules, your life is a lot easier. Take time to establish a strategy and keep everyone on the same page at all times.

Liability Concerns for Rental Properties

Rental Properties

Generally speaking, some habitational risks are covered under business insurance. However, in the case that the business is actually a commercial residential property, not all liabilities are addressed. A general insurance policy extends coverage to losses occurring as a result of explosions, smoke, hail, windstorms, fire, or vandalism. While these are not comprehensive situations, a general policy will not address the losses or situations dealing with the people that reside in the structure.

Extending Coverage Opportunities

Condominiums, apartments, duplexes, or rented homes can all count as habitational property. Since there is a complex owner-tenant relationship involved, it limits the application of a standard business insurance policy. Habitational insurance is a blend of both business and homeowners’ insurance, taking care of losses that occur on either the inside or exterior of the structure. Liability coverage is extended to tenant injury, as well as their personal belongings.

Policy Considerations

Though property damage and personal injury are strong coverages, it may be worth considering extending coverage into other problematic areas. Not all policies have these additional inclusions, so it is best to evaluate your options carefully. Consider looking into the following:

  • Loss of rental income
  • Accounts receivable
  • Equipment breakdown
  • Water damage
  • Errors and omissions
  • Public liability

With habitational insurance, you receive help coving the costs of legal fees and medical bills for tenants injured on the property. You also receive assistance with repair or replacement for damages or losses. Anyone who owns a rental property should consider purchasing this protection.

What Is an RRG And What Are the Advantages?

RRG

Paying attention to commercial liability is key when it comes to protecting your business for the long haul. If you’re looking for more control over your current insurance coverage, exploring your options can be a useful move. For some, a risk retention group (RRG) is the ideal solution. In order for you to determine whether this is the right fit for your business, look over these points, and get a better feel for what the option entails.

Risk Retention Groups Explained

Dictated by the Risk Retention Act of 1986, an RRG has the purpose of spreading commercial liability risks among all of the group members. This can be quite useful when it comes to making sure that everyone who falls under your policy is protected in the same way. Liability exposures can include anything from Errors and Omissions to Product Liability, meaning an RRG can provide you with a range of essential coverage. There are some limitations, however. Workers’ Compensation and other insurance options are not usually included. Other key advantages of an RRG include:

  • Better coverage and stable market rates
  • Reduced fees
  • Streamlined filing and licensing processes

Weigh Out the Pros and Cons

Understanding the pros and cons of an RRG can help you get a better feel for how this type of plan works. Research the details and determine if your company stands to benefit from exploring new insurance options.

Safeguarding Your Business From Cyber Threats

Cyber Liability

Attentive security guards and state-of-the-art building alarm systems may be enough to give some business owners and patrons extra peace of mind.  After all, when a potential outside threat to a building’s security is at risk it only makes sense to put certain protections in place to prevent any damaging events from occurring. However, with the growing reliance on technology, threats are no longer only physical but instead, also come in the form of various cyber threats. Even with the risks involved, utilizing the many technological innovations available can still bring many benefits that outweigh the risk as long as proactive measures are taken.

Taking Action

The experts at Moody understand the growing cyber threats that have the potential to jeopardize the state of virtually any business that utilizes technology. While many premium security programs can dramatically minimize the threats a business is exposed to, technology continues to evolve and new threats can present themselves. With the proper cyber liability plan in place, businesses can rest easier knowing that even in the event their existing cybersecurity programs are infiltrated, adequate efforts will be made to support these businesses when recovering from attacks. Whether the threat comes from a simple phishing scheme, something more complex such as a Trojan horse virus or even just employee negligence, it can be easier to focus on business operations knowing the benefits of a policy.