It may be considered as one of the most difficult times for businesses with the financial crisis that has yet to see and end to. Many companies have been forced to either diversify their product lines or streamline them to stay afloat in these hard times for business. Creativity is key for staying afloat and the inevitable outsourcing of vital operations seems to be the best options for most manufacturing firms. Cheaper labor in other countries are deemed to be better options allowing better cost management without having to deal with costly labor issues back home.

Some companies have opted to do just the opposite, bringing back home their operations allowing them to better manage them thus eliminate risks of foreign manufacturing. Where does insurance come into all of these scenarios, all over for it allows businesses the needed protection to keep them going even when the situation gets quite hairy. Insurance allows them the buffering they need to adapt and thus hopefully survive through the coming years.

The collapse of some big names in the insurance and business sector has raised a lot of questions into the viability of such products. Insurance firms that have collapsed leave their clients high and dry without the protection they need during such financial crisis. The question arises from time to time, are they still relevant in today’s business scenario.

Opinions would greatly differ for as sad as the story may seem, having no insurance is still a big risk in such times. Insurance allows ample resources to cover liabilities in times of financial turmoil. From the investors down to the individual clients, everybody benefits in a properly applied insurance policy preventing total loss.

www.berkeyinsurance.com

The cost of business insurance will depend on the type of work that you do and the combination of your annual revenue. In general, shopping around will help you get the best possible deal, and you will see that business insurance is far less expensive than you would expect.

You can purchase insurance from an independent insurance agent, or directly from the insurer. One of the advantages of working as a freelance consultant through an employer of record or an umbrella company is that your company will usually assume responsibility for your insurance coverage, which will be more beneficial to you.

www.schwanderinsurance.com

An Errors & Omissions Insurance (E&O) ensures that the clients are protected if ever an error on your part will cause them financial harm. Maintaining this kind of insurance represents your professionalism to the clients, and will even help you to obtain work in the future.

This kind of insurance also provides financial protection to meet the cost of defending any claims that is brought against you. It will also cover any damages that may become payable and held against you. Some examples are faulty legal advice, IT security failure, or a simple error in tax schedules. You can buy professional E&O insurance as an independent contractor or consultant operating as a limited company.

www.hendersonbrothers.com

As a freelancer who gives professional advise to clients, and they rely on that advice to provide IT solution services or make business decisions – you are in effect making a promise to them that your work will be free of errors. If you do make an omission or error in the work that you do for them, it will cost them dearly, both in reputation and cash. If that happens, you will have a direct financial responsibility to make it right to your clients. These days, more and more client companies will only contract with consultants who can provide a proof that they carry Errors & Omissions Insurance or professional liability insurance.

“Key Man” Insurance

Losing an important employee who plays a large role in the company is a very tough ordeal for the whole organization. There is a large risk that the whole operation may be affected or hindered. For these situations there is the “Key Man” Insurance. It is intended to protect the company from a loss of the “key employee”. Unlike the traditional disability insurance wherein the employee is the recipient of the benefits, here in “Key Man” Insurance the company is the one who would reap the benefits. The insurance vehicles for key man insurance can take two forms: Disability insurance or life insurance. Even if you are your company’s only “key man”, you should consider taking out key man insurance on yourself.

Overhead Expense Insurance

Say if you are running your own company and you are its only employee (self employment), and you were suddenly struck by an illness or injury? Who would pay for your bills? What would happen to the company itself?

If this event is to happen there is a high risk of losing large sums and in worst cases, this may lead to the downfall of the company.

It is a good thing there is what they call the Overhead Expense Insurance.

The Overhead Expense Insurance will pay for all of your overhead expenses be it your utilities, mortgage and many more if you are unable to work because of injury or sickness-and the duration? For up to two years.

What are you waiting for?

“Save up for a rainy day,” as the saying goes. Usually, we bring umbrellas on a cloudy and rainy day or night. Therefore, it should be the same thing as well when it comes to our property and finances.

Why You Need Umbrella Insurance
No one expects a disaster to strike his or her business. But every small business is vulnerable to a major catastrophe or a huge lawsuit. Think about some of the devastating losses you’ve heard about recently, or the large settlements that are awarded in courts. Some of these losses could exceed your primary insurance coverage unless you protect your business with umbrella insurance.

What Umbrella Insurance Is
As its name implies, umbrella insurance extends your coverage beyond the limits of your basic business insurance. Umbrella insurance is important because it covers unexpected events. It’s generally not expensive and in certain instances, it could literally save your business.

How Umbrella Insurance Works
Umbrella insurance policies provide additional liability insurance coverage after the limits of your underlying policy are reached.
Extra reinforcement!
That’s exactly what this option provides. With The Hartford’s umbrella insurance, you can get up to $10 million of liability protection over and above the limits of other insurance policies you have for your business. The Hartford will write umbrella coverage over business liability, auto liability and workers’ compensation.

Source

Being an employee means that for everyday you don’t come in you lose money. It’s a good thing then that there’s such a thing as Compensation insurance:

Why You Need Workers’ Compensation Insurance
As soon as you hire your first employee, you need the protection of workers’ compensation insurance. Not only do many state laws require it, but the financial security of your business may depend on it.

What Workers’ Compensation Insurance Is
In general, workers’ compensation represents a compromise between employers and employees regarding employment–related injuries or illnesses. In short, employees relinquish their right to sue employers if they suffer some job–related injury or illness. But in return, employers agree to provide state–mandated benefits if employees suffer some job–related injury or illness. And to ensure employees have the money to pay these mandated benefits, most states require that employers demonstrate that they have the financial ability to pay any claims that may arise. Typically this financial ability is demonstrated through the purchase of workers’ compensation insurance. Laws regarding workers’ compensation insurance vary by state, so check with your independent insurance agent or broker to find out exactly what you need and how it’s purchased.

How Workers’ Compensation Insurance Works
Most workers’ compensation insurance policies actually provide two types of coverages:

• Workers’ Compensation Coverage. This type of insurance provides benefits for injured workers as required by state law regardless of who is at fault for the job-related injury or illness. In other words, whatever benefits your state requires, your workers’ compensation policy would provide.
• Employers’ Liability Coverage. This additional coverage protects employers if they are sued for damages arising from employment–related accidents or diseases. However, to collect benefits provided by employer’s liability coverage, the employee, as well as anyone else not covered by workers’ compensation laws (i.e., spouses and dependents), would have to prove that the employer was legally responsible for the employee’s injury or disease.

Source

If you own a small business you might want to look at the type of insurance available for you:

• Professional Liability Insurance (Errors and Omissions, E&O)
  Professional Liability insurance, also referred to as Errors and Omissions insurance or E&O , is insurance to protect you and your company in the event a client alleges they have suffered a financial loss as a result of an error or an omission committed by you in the delivery of your professional services. This coverage is separate from a General Liability (GL) policy which would cover you mainly for bodily injury or property damage liability.

• Workers’ Compensation Insurance
  Workers Compensation insurance provides medical and disability coverage for your company employees in the event of a work related illness or injury. The employers’ liability portion of most Workers’ Compensation policies protects your company in the event that an employee files suit claiming that your company’s negligence was the cause of the work related illness or injury. Workers’ Compensation insurance is required in many states.

• Business Liability Insurance Package Policy
  Often referred to as a Business Owners Policy (BOP), a General Liability package policy protects your company in the event that a client is injured on your premises or if you or one of your employees injures someone or damages property at a client’s location. The General Liability coverage on a business liability insurance policy also meets your landlord’s requirement that you carry business premises liability insurance.

• Umbrella Liability Insurance
  An Umbrella Liability (more accurately Excess Liability) provides coverage for claims that exceed the amount of coverage on your General Liability policy and may also add coverage to your Commercial Auto coverage as well as the Employers’ Liability coverage on your Workers’ Compensation policy. Coverage is triggered when claims are in excess (thus the name) of the underlying insurance.

via [Business Insurance Now]