As a small business owner, you already have plenty of things to worry about. Whether or not you have gaps in your insurance shouldn't be one of them. After all, having the right insurance isn't just about protecting your business should the unexpected occur, but also about the ongoing peace of mind that adequate coverage provides.
Unfortunately, many small business owners often find out after it's too late that their coverage comes with significant holes. For others, they may not even aware of there may be coverage
that could benefit them. Below
we'll look at three of the most common gaps in small business insurance plans and how filling in those insurance gaps could make a huge difference.
1. Business Interruption
There are any number of threats and hazards that can shut down your business for days or even weeks at a time. Natural disasters and building fires can put your business out of commission and shut off vital revenue streams. For many small businesses, even a slight interruption in inbound cash flows can turn into a slippery slope very quickly.
Business interruption insurance is designed to cover you for the costs of these disruptions, including the revenue you may have lost and the cost of having to set up shop at a temporary location. Many businessowner's policies
(known as a BOP) offer business interruption coverage – but not all do and coverages can vary – so it's important to know beforehand what your policy does and doesn't cover.
2. Errors & Omissions
Nobody's perfect, but for many professionals an error or omission is more than just a little embarrassing. Rather, it could lead to costly litigation, settlements and even reputational harm. This type of liability coverage is standard for professionals such as lawyers and doctors, and is becoming increasingly important for those working in the financial and technology sectors, where a single mistake can prove costly for clients and/or customers.
By having Errors and Omissions insurance can pay the costs of litigation or settlement payments arising from a covered error or omission. Errors and Omissions coverage, however, isn't included in many general liability policies, meaning that in most cases it will have to be purchased separately.
3. Equipment Coverage
If you have a BOP, then your place of business, such as your office space, is generally covered including the contents. Think computers, telecommunications equipment, copiers and the like. What you may not be aware of, however, is that property insurance does not typically cover all types of business property.
Contractors who take tools and equipment to different job sites generally need a separate contractors' equipment insurance policy to ensure their property is covered in the event of damage, loss or theft. A wide range of contractors, such as construction crews, landscapers and even snow-removal services, require this specialized insurance to cover bulldozers, tractors, hand tools and so on. Even better, contractors' insurance
is a "floating" type of coverage, meaning your tools and equipment are covered no matter where your work takes you.
Running a small business is fraught with risks, but your small business insurance plan should be there to cover you when an incident results in a loss. Unfortunately, a one-size-fits-all policy can leave substantial gaps in insurance coverage for small business owners just when they need it most.
Here at AmVenture Insurance Agency, Inc., we strive to provide flexible and innovative gap insurance solutions. Our approach allows business owners to focus more on running their business, and less on worrying about whether their small business insurance plan is up to the big job of keeping them, and their livelihood, covered.
The opinions expressed here by AmVenture.com columnists are their own, not those of AmVenture.com.