A new year brings with it an opportunity to assess your small business goals and needs. As you’re going through your 2023 checklist, don’t forget to include your business insurance in your new year check-up. 

Many small business owners are juggling many tasks to run their day-to-day operations. They don’t need the hassle of worrying about whether they have enough insurance coverage. So what does small business insurance look like? 

According to our partners, The Hartford, there are 11 areas of coverage small business owners need to have in place; however, if you are just starting out and cannot get all of the recommended coverage, you need to ensure that you at least have these three areas of your business covered:

1. General Liability Insurance: General Liability Insurance protects your business from claims it caused either in the form of bodily injury or property damage to someone else. This can be things like slips and falls in your place of business or store. Some business owners add a Product Liability policy to their General Liability policy to protect against injury from the use of their products.

2. Professional Liability Insurance:
Professional Liability Insurance protects your business from mistakes in the professional service areas that your business provides. If you are sued for a mistake, this insurance policy will help cover the costs of your legal fees.

3. Workers’ Compensation Insurance:
Workers’ Compensation Insurance provides benefits to employees who may be injured or fall ill under your employment. More than likely, your state laws require businesses to have this type of insurance.

In addition to the three policy areas mentioned above, you should strongly consider adding a Business Income Policy, Commercial Auto Insurance Policy and Data Breach Policy. These additional policies can be a lifeline for your business if something should go wrong. 

Upon a risk assessment by our team of advisors, other coverage areas may include Commercial Property Insurance, Commercial Umbrella Insurance, Employment Practice Liability Insurance, Business Owner’s Policy, and Hazard Insurance. 

Give yourself peace of mind in 2023 by making sure you are covered. Our risk advisors are ready to help you with all of your insurance needs and put the power to mitigate risk to work for you. 

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Are you ready for summer? While your kids may be on summer break, risks never take a vacation. In fact, summer activities like these often lead to more mishaps.

  • Road trips: During the summer, the roads are more crowded, which makes driving more dangerous. Whether you’re taking a road trip in your personal vehicle or a rental car, be sure your auto insurance policy covers collisions. If your auto policy does not include driving in a rental car, consider purchasing the liability insurance offered at the rental counter.
  • Pool parties: By having a swimming pool, you take the risk of someone getting injured or drowning on your property. If you haven’t already, consider increasing the liability coverage on your homeowners policy to reduce this risk. Also, be sure to take measures to prevent accidents, such as building a fence around the pool and making sure children never swim unattended.
  • Summer storms: Strong summer thunderstorms can wreak havoc on your home and cause water damage. While homeowners insurance doesn’t cover flooding, you can purchase a flood policy to reduce this risk.
  • Boating: Boating-related accidents seem to increase every summer. While small boats like kayaks and canoes are often covered by your homeowners insurance, you usually need a separate policy for large watercrafts and jet skis. The cost can vary depending on your liability coverage, the value of your boat and where it’s kept.
  • Vacation home rental: When you rent out your vacation home, you run the risk of tenants damaging the property. Homeowners insurance may provide coverage for an occasional short-term rental, but if you regularly rent out the property, you may need an additional rider or a commercial landlord or host policy.

Fortunately, you can mitigate these risks by making sure you have the proper insurance policy in place. As summer draws nearer, determine if these risks are relevant to you and contact a representative at The Prewitt Group to be sure you have the coverage you need.

Is General Liability Insurance Enough

Because it covers the most common lawsuits that arise from everyday business activities, General Liability Insurance is often the go-to coverage for small business owners. But, is it enough to really protect your business?

A Commercial General Liability (CGL) policy covers three primary components: premises liability, products liability and completed operations.

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While it’s essential to know what your insurance policy covers, it is just as important to understand what your policy does NOT cover. In commercial insurance terms, an “endorsement” refers to a document attached to an insurance contract that adds, removes or alters the scope of coverage under the policy. To avoid confusion following an incident, it is smart to be aware of any new or existing endorsements that impact your commercial insurance policy.

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