This is an insurance policy that is usually attached to the Business Owner’s Policy or BOP. It protects the company from the exposure that contractors, employees, and founders create. Someone might be driving to the bank to deposit a check, or going to Starbucks to pick up coffee for the office. Accidents can happen on company time, and the second largest claim that technology companies experience is auto liability claims.
2) Just because your clients aren’t paying you yet doesn’t mean you don’t need Errors and Omissions Insurance
Regardless of whether or not your client is paying you, they can bring lawsuits that can be severe to your business. You may have a "beta" customer who does not pay. But, it does not mean that the technology service will not fail or give them financial problems. If your technology ends up costing your client business, be prepared for the fallout.
3) Failure to buy insurance for workers compensation.
There's a law that requires companies to buy workers compensation insurance. Your business should provide it if it has three or more employees. If you have no more than three employees, you are still needed to pay their medical bills. This happens when they get an injury on the job. You may ask an employee to run out so he can get lunch for everyone. Always remember that an errand is an event that is work sanctioned. The employee may experience harm on that trip. Whenever this happens, it is the company's responsibility. It includes the payment of medical bills in case there is an injury. You may think that nobody could get injured in an office setting, but remember that there are even injuries that occur from sitting at a desk too long or spending too much time typing.
4) Believe that as the company grows, it can "round out" the insurance policies. They have coverage that is more robust.
Your business does not need to be big before someone sues you like you are big. It is important to buy insurance today. You might expect something big "tomorrow." Make sure that you assess your insurance every year. Do this at least and base the buy on the growth you expect or are aiming for.
5) Business Insurance can be confusing, and it is probably best that you work with an insurance agent that you trust
There are some benefits when you collaborate with a commercial insurance agent. The main advantage is that commercial insurance can be confusing and there are lots of optional coverages that your business may or may not need. Work with an expert that knows the coverage that your business needs.
Whether you are adjusting your current coverage, or buying insurance for the first time, know these common mistakes so that you don’t make them.
At Western Pacific Insurance, we take pride in making sure our clients are well protected at prices they can afford. To learn more about how we can help you, please contact our agency at (303) 904-3777 or Click Here to request a free quote.