Product liability

If your company designs, manufactures, distributes or sells a physical product—anything from toys to building supplies to macaroni and cheese—you’ll want to strongly consider purchasing product liability coverage. This coverage helps provide financial protection in the event that the use of your product results in property damage, personal injury or death. Product liability coverage can be added to your general liability insurance policy or purchased as a stand-alone policy and can be tailored to the types of risks to which your business may be exposed.

While business insurance policies by definition provide coverage for the business itself, individual company officers may still be personally exposed to financial losses resulting from a lawsuit. To protect your company’s leadership, you may want to consider purchasing directors and officers (D&O) liability insurance.

Numerous state and federal laws provide job candidates and employees with protections from discrimination and other unfair workplace practices. The number of employee lawsuits has increased in recent years, and any size business is vulnerable to this type of risk. Small businesses can be especially vulnerable because they are less likely to retain employment attorneys or have detailed employment policies and training programs.

Do you or your business provide professional services or advice to other businesses or individuals? Could your counsel or service lead to losses by your client for which you could be held responsible? If so, you’ll likely want to purchase professional liability insurance, also known as errors and omissions insurance (E&O).

Claims not covered by general liability insurance that are covered by professional liability insurance include negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice.

A Commercial General Liability (CGL) policy protects your business from financial loss should you be liable for property damage or personal and advertising injury caused by your services, business operations or your employees. It covers non-professional negligent acts. Understanding this coverage is an important first step in managing CGL risks.

Here are just a few examples of situations in which your business could be responsible for paying various costs, such as medical and legal expenses, as well as compensatory and punitive damages:

No business is immune from disaster. Every year, businesses temporarily shut down—or close forever—because of a disaster such as a flood, fire, or hurricane. According to the Federal Emergency Management Agency (FEMA), 40 percent of companies do not reopen after a disaster, and another 25 percent fail within one year.

Fortunately, you can take proactive steps to mitigate the impact of a disaster on your business. In addition, carrying adequate insurance coverage can help your business get back on its feet quickly.

Injuries to employees can be devastating for businesses, especially small businesses with fewer employees available to take on new roles when an injured worker is on leave. While workers compensation insurance will help pay medical costs and replace an injured employee’s lost income, your business will have to absorb costs associated with reduced productivity, overtime, training replacements, and so on.

Businesses of all sizes face potential losses due to criminal activity. Depending on the nature, size and location of your business, your company may be vulnerable to various types of crime—from burglary to employee theft to fraud.

In addition to purchasing specialized crime (or “fidelity”) insurance, you will want to consider taking steps that prevent crimes from happening.

Preventing theft by outsiders

Taking precautions can deter criminals from targeting your business for burglary. Consider installing and maintaining:

Whether you own or lease a single business car or an entire fleet of commercial vehicles, you’ll need to purchase commercial auto insurance. Your insurance professional can help you weigh your risks and evaluate coverage options.

But even with insurance in place, you’ll want to take steps to prevent accidents and protect your employees and vehicles. Your business can reduce the chance of an accident by establishing and enforcing the following practices and policies.

It’s tough to face a situation that sets back your business. Imagine if: