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We've all heard about the thief who sued for injuries
suffered during a burglary, and the woman who won millions
for spilling hot coffee on herself at the drive-through
window of a fast-food chain. Could your business survive
a big judgment - or even a fight against a groundless claim?
In today's litigation-prone society, it may be prudent
to review your various insurance policies to ensure you're
adequately protected. Here's a checklist of some insurance
you may already have in force and options to consider for
additional protection.
Commercial Property And Liability
If you own a building or equipment that has risen in value,
have added more vehicles to your delivery fleet, or keep
inventories and supplies on hand, check to make sure your
policy limits are adequate for your potential losses and
liabilities Also consider commercial umbrella coverage,
which can provide an added layer of protection against catastrophic
loss.
Key Person
In the event an owner or essential employee is unable to
work, a key person disability income insurance policy can
be designed to cover any loss of income as well as the costs
associated with hiring and training a replacement.
Should an owner or essential employee die, key person replacement
life insurance helps protect the business against falling
profits, lost credit, costs of hiring and training a replacement,
servicing debt, and financing future growth.
Overhead Expense
Overhead expense disability insurance covers day-to-day
business outlays such as rent and utilities, that must be
met even if you're unable to earn income due to an accident
or illness.
Workers Compensation
The Insurance Information Institute reports that workers
compensation insurance is mandatory for nearly all employees
in all states except New Jersey and Texas. This coverage
provides protection for employees who are injured or become
ill as a result of working conditions.
Specialized Coverage
Other types of policies that may offer you additional protection
include:
Professional liability protects against injury or
loss to third parties arising from negligence or malfeasance
in rendering professional services.
Directors and officers liability protects key executives
against losses resulting from lawsuits alleging misrepresention,
mismanagement, material error or omission in the disclosure
of financial information.
Employee practices liability protects against claims
of workplace sexual harassment; wrongful termination; discrimination
under the Americans with Disabilities Act; and failure to
hire or promote due to age, sex, race, or religion.
Of course, you can't insulate your business from every
type of risk. But a careful review of your current policies
will help you assess areas of potential liability and identify
insurance coverage that could provide added protection in
1999.
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