CARL WATTS & ASSOCIATES

June 7, 2010


You’re a small business owner or you’re about to become one so you know your business may be exposed to a variety of risks and liabilities. Let’s get through this material together so you can choose the kind of insurance you need to better manage any potential risk to your business.

www.carlwatts.com
office@carlwatts.com
Washington DC
 tel/fax 202 350-9002
Opening a Business and Insurance Needs
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Business Property Insurance is not a requirement unless your business has assets (like automobiles or real estate), employees or it is a loan condition. There are special coverage and basic form policies to choose from; the “Broad Form” may cover different types of disasters while the “Specific Peril will only cover one separate type, like fire or flood. Usually a “Business Owners’ Policy” is the best option for most small businesses as it covers property and business-related assets and can be a combination of property and liability insurance.
Business Liability Insurance covers against loss from business negligence or its employees; it protects your business and personal finances from injury and advertising claims, property damages, professional liability if you’re in the services business or product liability if you’re selling or manufacturing products.

Business Disability Insurance is designed to protect your income if you become disabled due to an accident or illness. Unfortunately studies have shown that becoming disabled is a more frequent probability than you would think: one in seven people will become disabled for five or more years before turning 65. A Life and Disability Insurance policy may be a good choice to protect the business in case of death or disability of the owner; and it can also be an attractive incentive to enroll or keep valuable employees.

Errors and Omissions Insurance is meant to protect your business against professional error in the eventuality of a lawsuit from an unhappy customer. This type of insurance is obviously a hot topic for doctors, lawyers, realtors and other professionals, but is in fact a good risk management tool for any kind of business that cannot afford to wage or lose a civil lawsuit.

Workers Compensation Insurance is a must if your employees may be at risk of injuring themselves on the job (if you’re in the construction industry for instance). Any claims from an injured employee to provide medical coverage and compensation will be covered by the insurer.
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Business Interruption Insurance will protect your business against loss or damage caused by interruptions in the normal operating process. Interruptions may occur for instance if some machinery brakes down and it takes time to repair or replace it, or your business location is temporarily unusable.
There is a wide variety of business insurance policies and most insurance companies can come up with package policies to cover several risks according to the specifics of your business.

As always rest assured we are here ready to offer help and guidance in all your ventures.