Businesses today need to carry a dizzying variety of insurance policies to cover nearly every aspect of their business. For smaller companies without deep management resources or insurance experts on staff, the types of policies required can be confusing and overwhelming. In this blog, we will break down some types of commercial insurance that may be necessary for companies, depending on the kind of business they do.
Errors and Omissions – E&O. Errors and omissions (E&O) insurance is a kind of professional liability insurance created to protect companies, employees, and other professionals against claims of inadequate work or negligent actions. All companies that provide a service, including financial services, insurance, healthcare, law services, and even party and event planners, are required to carry E&O insurance.
Employment Practices Liability Insurance – EPLI. EPLI covers companies against legal claims by workers that their legal rights as employees have been breached. This type of insurance is critical, as claims against employers by employees have been on the rise in recent years. For smaller companies, some insurer providers make ELPI coverage available as an addition to their Businessowners Policy (BOP). ELPI is generally offered as a type of “gap insurance” for a company, and it includes coverage for the costs of defense and damages related to employment claims including allegations of wrongful termination, workplace harassment and retaliation, or discrimination.
Builder’s Risk – Property and Liability. This type of insurance is important for builders or anyone who does work on a building site. It protects property as well as construction materials during a construction or renovation project. The term of the policy is in effect on construction sites during the building and concludes when the project is complete. It protects against damage or destruction due to fire, vandalism, or other unexpected events. It generally does not cover damage from disasters such as earthquakes, floods, or hurricanes unless the policy has been specifically written to do so. These events generally require separate policies to protect the building site.
Inland Marine. Despite having the word “marine” in the title, this type of insurance covers products, materials, and equipment when they are transported over land — generally by truck or rail service —or while temporarily warehoused by a third party. (It’s important not to confuse inland marine insurance with marine insurance, which covers products transported over water). Inland marine insurance can cover a wide range of specialty equipment and products, including computers (everything from servers to laptops), communications and networking equipment, construction and contracting equipment, medical and scientific equipment, and photography equipment.
Consult a Knowledgeable Insurance Agent
As a business owner, it’s critical to have a reliable business insurance agent on your side. To be sure that your business insurance policies cover all scenarios, review your coverage in advance. In Connecticut, Petruzelo Insurance offers business, personal, and auto policies that fit your needs and protect you in the event of a business loss or lawsuit. Call us at 866-479-3327 or visit our website for more information.