Don’t Skimp on Liability Limits

$1,000,000 or $5,000,000? We suggest that you get the highest limit you are comfortable with. The cost of liability insurance is not linear, a $5,000,000 limit will not cost much more than a $1,000,000. At the minimum, we recommend a $2,000,000 limit. We highly recommend that you review your rental or lease agreement as it is likely to specify the limit you are required to carry.

Don’t Forget the Landlord

Once again, check your rental or lease agreement. It is very likely that your landlord wants to be added to your policy as an additional insured. This is quite common and extends liability coverage to the landlord for your acts as a tenant.

Insure Your Contents

Ensure that you are carrying proper limits for your contents. This includes not only property you own but any improvements (called betterments) that you have made to the space you are renting/leasing. Once again, the biggest mistake that you can make is not having enough in the event of a claim.

Business Interruption

Very likely the most important coverage for a business. It is easy to think about protecting “things” but protecting your income or profits is just as important as stock or equipment. It is not inexpensive as it is rated similar to what you have to insure your contents at.

Don’t be tempted to skip on business interruption coverage. Without it, your business is likely to fail after an insurable event.

Cyber Insurance

Cyber attacks are so common now if you are connected to the internet and/or use email or even smart phones you are at risk. It is hard not to see a new cyber attack in the news everyday. There are a multitude of types of attacks including the malware attacks. Ransomware is quickly gaining infamy and costing even regular businesses (don’t think just Target and Facebook). If you have customer data (let’s face it, who doesn’t these days) stored electronically, then you are at risk.

Also consider that your staff may not be technically inclined and have less experience. If you have a relatively transient staff you may be at risk.

Equipment Breakdown

Equipment Breakdown Insurance covers you for property damage resulting from the sudden and accidental breakdown of insured equipment that is not automatically covered by a business insurance policy. This optional coverage insures against property damage, business interruption and spoiled inventory or contents that result when specified kinds of mechanical, electrical and pressure equipment are damaged, including power surges.

You can insure nearly everything for loss that is mechanical, electrical, electronic or under pressure due to breakdown, including boilers, air conditioning and refrigeration units, electrical panels, computers and security or telephone systems.