June 17, 2023

“Nice to Have” Insurance Policies

Business Meeting about business insurance

Nice to have” insurance policies are policies that not all businesses carry but maybe should carry.

Three of the most important ones include:

Professional Liability (PL)

In addition to lawyers, doctors and accountants, many businesses now need PL insurance. You don’t have to consider yourself a “professional” to need coverage for negligent acts. If you give advice and recommendations, if you create programs or products for your customers or if you provide a service, you need liability protection. Some examples you may not think of right away include:

  • Personal Trainers
  • Pest Control Services
  • Beauticians-barbers
  • Management Consultants
  • Occupational Therapists
  • Photographers

Cyber Liability

Some of the main risks of cyber-crime include:

  • Identity theft from security breaches of sensitive information when stolen by a hacker or inadvertently disclosed, including Social Security numbers, credit card numbers, employee identification numbers, drivers’ license numbers, birth dates and PIN numbers.
  • Business interruption from a hacker shutting down a network. Damage to the firm’s reputation.
  • Costs associated with damage to data records caused by a hacker.
  • Theft of valuable digital assets, including customer lists, business trade secrets and other similar electronic business assets.
  • Introduction of malware, worms and other malicious computer code.

Directors & Officers Insurance

There are two or sometimes three parts to these policies:

  • Part A covers directors and officers, reimbursing them directly for claims of liability that arise from their corporate duties.
  • Part B covers the corporation, reimbursing it for expenses it pays on behalf of the directors and officers, if state law permits or corporate charter or bylaws require the corporation to indemnify directors and officers.
  • Part C, or “entity coverage,” which many policies include, covers the corporation itself when it is named in a lawsuit or claim. If you have questions or feel that you lack any of these coverages, please contact us.

Article Courtesy of SmartsPublishing.com