Not all small business owners are fully covered with enough insurance to protect their business and its assets. Does your company have the coverage it needs?

Here’s some basic information about the different types of insurance and how they are designed to protect you.

Business interruption insurance provides coverage in the event of a catastrophic loss that interrupts routine business activity. If your company office burns to the ground, you may need some time to get back on your feet. Business interruption is one of those things that many small business owners (SBOs) don’t consider when assessing business risk.

Help ensure that your business doesn’t go out of business because you can’t conduct routine business activities. Get business interruption coverage to protect the future of your future, and ensure that you have an income while your business is interrupted.

Errors and Omissions insurance, sometimes called professional liability insurance, protects your business against malpractice, service errors, negligence, and other errors and omissions made by employees of your business.

Businesses that provide home maintenance services should certainly have Errors and Omissions coverage. In some states, it’s a requirement for certain professionals like home inspectors, notaries, real estate professionals, and others to carry E&O coverage to protect consumers. For example, in Nevada notary publics are required to carry at least $10,000 of Errors and Omissions coverage.1

Even if your business isn’t required to carry E&O coverage, it’s a good investment in business security.

Key person coverage protects your business in the event that a key employee is unavailable to perform vital business functions. If a critical member of your team suddenly passes away, you may not be able to fulfill contractual obligations or even routine business activities.

Key person coverage is smart for small partnerships in which two or three owners control business activity. If one of those owners is suddenly unavailable, this coverage keeps business activity moving forward while you look for a replacement.

Data insurance coverage. If your business owns a patent, that’s an important asset. If you have a mature database of happy customers, that data has marketing value that’s difficult to calculate and impossible to replace if it disappears.

Hire a cyber-security professional and insure intangible but essential business assets – like the secret family recipe for the best pizza in town. Data can fill dozens of drives, or simply be a record of current order status. Large or small, make sure your company data is protected from loss and retrievable from a remote site, like cloud storage, that you can access if your main server is hacked and data stolen.  

Many insurers provide a detailed risk assessment as part of their service offerings. OSHA – the Occupational Safety and Health Administration – can assess workplace risk to determine that your company is compliant with all federal regulations about workplace safety and worker health.

You can also hire risk assessment consultants, or talk to a business attorney who knows your company and the services and products you deliver.

Of course, you’ll carry general business liability coverage, but you may need additional policies and riders to fully protect your company.2 A risk assessment can help protect you now and into the future.

Make sure your company is covered to protect its future, and your future.


2.   Click here for a related article on business insurance.


The information provided is presented for general informational purposes only and does not constitute tax, legal or business advice. Any views expressed in this article may not necessarily be those of Nevada State Bank, a division of ZB, N.A.