Business Insurance Basics: What Type of Coverage Do You Need?

Most business owners need more than one type of business insurance policy to fully cover all of the risks that they face. This blog will focus on just a few types of policies that you might need to protect your business from various potential problems.

Commercial General Liability (CGL) Insurance

Commercial general liability insurance is essential for most businesses. It protects your business assets by providing protection against liability claims that can arise from injuries or property damage that occur on your business property, or those that are caused by you or your employees in the course of business operations.

In addition to paying for damages, most CGL insurance pays for attorney fees in the event that you have to defend yourself from a lawsuit. It also provides coverage for claims of libel, slander, copyright infringement and false advertising.

Pollution Liability Insurance

Businesses that produce hazardous waste during the manufacturing process need pollution liability insurance. It protects your business against liability claims for damage caused by toxic substances. In addition, it is recommended for certain design professionals, environmental contractors and consultants, and owners or sponsors of construction projects.

Pollution liability overage is typically excluded from CGL policies; businesses that are at risk for pollution liability claims need to purchase a separate policy. Independent contractors often are required to provide proof that they have pollution liability overage before they can begin work. Even if not required by a customer, any business that is at risk of being sued for emitting hazardous waste should purchase this type of insurance. It protects your business from the financial consequences of lawsuits and environmental clean-up.

Employment Practices Liability Insurance

Employment practices liability insurance (EPLI) covers businesses for claims and lawsuits that are brought against it, its officers or directors, or its employees and managers. Coverage is for claims of discrimination, wrongful termination, sexual harassment and other employment-related allegations. Any business that has employees likely has a need for EPLI because of the increasing number of employment related lawsuits. In addition, standard liability insurance policies do not provide adequate coverage for employment related risks.

EPLI policies will reimburse your company for the costs of defending a lawsuit in court and for judgments and settlements. It covers legal costs whether you win or lose, but it will not provide coverage for punitive damages or civil or criminal fines.

Employee Benefits

Employee benefits—group health insurance, group life insurance, short- and long-term disability insurance, and more—serve a critical purpose for your employees and can often mean the difference between a satisfied workforce and one that is unhealthy and disengaged.

Despite recent confusion brought by the Affordable Care Act, group health insurance remains the benefit that employees desire most. Many see it as an important part of their overall compensation plan, and may even be willing to except better coverage in lieu of higher salaries. Offering a comprehensive group health plan can undoubtedly help you attract and retain top talent, as well as encourage wellness and healthy living.

Group life insurance is another desirable employee benefit. Even if participation is voluntary, your employees can often obtain coverage for a better price than they could on their own.

In addition to health and life insurance, there are a variety of other different employee benefits and perks that you can offer to your employees to help keep them satisfied and committed to your organization.

At Anco Insurance, we offer advice and solutions for large and small businesses, and we can recommend business insurance policies and risk management techniques that will protect you from the risks you face every day.

Business insurance is complex, and the solutions are never one-size-fits-all. Contact us to learn about the business insurance solutions that are best suited for you.


NOTICE: This blog and website are made available by the publisher for educational and informational purposes only and is subject to change. It is not to be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.