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Why Does Your Business Need Insurance?

It doesn’t make a difference if your company is virtual, out of your home, on the road, or in a leased building. There is going to be a time in your company’s operation when you will face one or more of the following:

  1. An auto accident
  2. Someone gets hurt while working for you
  3. Your work injures another person
  4. You fire someone and they are not happy
  5. Your property is damaged
  6. Money or inventory goes missing

Your business needs someone with deep pockets to take on the financial risks that your business faces from lawsuits, accidents, and injuries. Just to illustrate the complexity of financial risks that a business could face, consider this “short” list of insurance coverages that a business could buy:

  1. Accident Health
  2. Auto
  3. Builders Risk Insurance
  4. Business Income & Extra Expense
  5. Commercial Crime
  6. Computer Coverage
  7. Computer Fraud Coverage
  8. Contractors Equipment Coverage
  9. Directors & Officers Liability
  10. Disability Insurance
  11. Earthquake Coverage
  12. Employee Benefit Liability Coverage
  13. Employee Dishonesty Coverage
  14. Employers Liability
  15. Employment Practices Liability
  16. Environmental Liability
  17. Fiduciary Liability
  18. Flood Coverage
  19. Forgery or Alteration Coverage
  20. Funds Transfer Fraud Coverage
  21. General Liability Coverage
  22. Hired & Non-Owned Auto Liability Coverage
  23. Installation Floater
  24. Life Insurance for Buy / Sell Agreements
  25. Liquor Liability
  26. Network Security / Privacy Liability (Also known as Cyber Insurance)
  27. Professional Liability or Errors & Omissions Insurance
  28. Property Coverage
  29. Stop Gap Coverage
  30. Systems Breakdown Coverage
  31. Transportation Coverage
  32. Umbrella or Excess Liability
  33. USL&H Coverage
  34. Workers Compensation

Not every insurance product listed above is needed for every business. It serves to illustrate the complexity of exposure to financial loss that a business could face. The bigger question is what degree of risk to financial loss does a business have which drives the need to purchase these types of insurance products?

When you are dealing with an independent agent like Rue Insurance, it would be wise to sit down and talk at length about your company and how it operates. If you get a quote online from a website that asks some basic questions about your business we have a term for that – “Buyer Beware.”

Websites designed to provide you a quote online rely on a “One Size Fits All” approach to selling insurance. But the reality is every business is different. Coverage customized to meet the financial risks that each individual business faces is paramount.

Scott Harrigan

About Scott Harrigan

Scott started his career in insurance in 1988 and joined Rue Insurance in 2004 as a Marketing Specialist focusing on creating effective risk financing and risk transfer programs for companies and non-profit organizations. In addition to this he is a member of the Rue Insurance educational team that provides ongoing professional development in critical insurance concepts and programs to Rue employees. About Scott | More Posts by Scott