If you are a new business owner, you likely already understand the importance of having business insurance. But there are many types of policies your business could need, depending on its industry, size, and other factors. Before opening your doors and doing business, it’s a good idea to speak with a knowledgeable New York business attorney.
Rosenbaum & Taylor can review your business and help you determine the policies you could need. Then we can connect you with an insurance broker to get you started on the right path.
Why Is Business Insurance So Critical?
The answer may seem obvious, but in reality, a significant number of New York businesses lack sufficient insurance coverage. They might carry some policies, but not all of the ones they need. Having a coverage gap like this is risky. A natural disaster, accident, or criminal event such as a data breach could spell financial ruin. That’s why it’s critical to have insurance coverage for a variety of losses.
The right business insurance can:
- Protect a company’s assets
- Replace property that was damaged by loss or theft
- Provide for lost business income
- Pay damages for negligent acts and shield the company’s owners
- Provide automobile, workers’ compensation, and other forms of legally required coverage
What Are Some Different Types of Insurance Your Business May Need?
In deciding what kinds of insurance coverage your company should have, consult with a New York business lawyer. These are just a few potential options, among others.
Business Owner’s Policy, or BOP
BOP insurance is a bundled property and liability insurance policy, also known as a package policy. Coverage can be tailored to the exact needs of the business. For instance, an accounting firm will have liability exposure that is different from that of a restaurant. The company can obtain broad coverage for affordable premiums.
Monoline Policies
As the name suggests, these are single lines of insurance such as fire, automobile, liability, etc. BOPs combine one or more monoline policies. But purchasing a monoline may be needed if it’s not included in a package policy. Consider the specifics of your business and its insurance needs in deciding whether specific monoline coverage is necessary.
Business Interruption
This type of coverage helps pay for losses incurred while a business cannot operate. It should not be confused with property or casualty insurance. Property insurance, for instance, may pay for actual damage and destruction of business property. But it won’t account for the time lost while your business has its doors closed.
Business interruption can pay for lost business income, fixed expenses, and ongoing operating expenses like payroll. Review the size and nature of your company with a New York business law attorney. Then, you can decide the specifics of your business interruption needs.
Commercial Auto
Does your company have business vehicles for employee use? This category covers it. But special coverage can also be obtained for situations where employees use their personal vehicles for business purposes.
Without this insurance, your business could be held liable in an automobile accident. Know your company’s vehicle needs, including rental cars, in selecting an appropriate policy.
Workers’ Compensation
You don’t want to forego workers’ compensation coverage for your employees. Nearly all New York employers must carry it, and it provides numerous benefits for workers such as medical bills.
Rates depend heavily on your industry and the size of your payroll. If your workforce is expanding, especially if it’s adding more labor-intensive employees, consider updating your workers’ comp policy.
Professional Liability
Certain professions require liability insurance to guard against malpractice and other negligent acts. Doctors, nurses, architects, and attorneys frequently require this type of coverage. Without professional liability insurance, an individual or firm could be directly sued for failing to competently render its services.
Our firm can advise your company as to whether this sort of policy is needed.
Cyber Insurance
If your company routinely handles sensitive electronic data and is susceptible to data breaches, you may need cyber insurance. You should understand that every New York business has a general duty to protect its customers’ personal information.
However, some companies are more likely to be targeted by hackers – and are potentially more vulnerable to them. This is where a cyber insurance policy could prove beneficial.
Evaluate the Exact Needs of Your Business With Us Today
There are numerous other types of business insurance, some tailored to specific industries. Are you unsure what kinds of coverage you may need? Do you have questions about insurance terms, limits, exclusions, and other details?
Don’t hesitate to reach out to Rosenbaum & Taylor’s New York business attorneys. Call us today at (914) 326-2660 to learn more.
