BUSINESS INSURANCE SIMPLIFIED

We believe that business insurance should only be purchased when it is required. Where the business currently is in its lifecycle influences when, what and how much insurance to buy. Use the set of tools below as a guide.

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Calculate your company's insurance needs:

Find your example premiums:

Company Lifecycle
Developmental
Start-Up
Growth
Expansion
Maturity
CONTINUE

DEVELOPMENTAL

You have an idea. A concept. You’ve talked to some friends, family, old colleagues. You are researching (maybe that’s what you are doing right now). You’ve started down the path to start a company.

START-UP

Research & Development is in full-swing, marketing strategies implemented, employees are hired, and sales are being made. You are presented with contracts for venders, clients, employees and investors. The contracts require you have insurance.

GROWTH

Your business model has been tested and proven and generating increasing Revenue. Quarterly meetings discussing successes, new-hires and new business opportunities are taking place. You have a need for Financial Reporting. Stakeholders contractually require you have insurance to protect their interest.

EXPANSION

The business is thriving. Your market presence in the industry has been established. New markets and distribution channels are being tested. Revenue is increasing exponentially. As new offices and employees are established, an International presence is developing. You’ve moved beyond just needing insurance for contractual requirements and look to protect your Assets and Revenue stream.

MATURITY

The business has become profitable, while establishing a dominating presence in the industry. Intense growth has leveled off but reporting and oversight has increased. Quarterly earnings reports, board oversight committees and layers of management ensure you are ready for competitor attacks, regulatory demands and the viral social media issue of the day. The business has become a target.

Your company will need the following:

No Insurance Needed

Definition
You shouldn't even be considering purchasing insurance at this stage.

Example
Nothing as you don't have a product or service to cause a loss.

General Liability$

Definition
General Liability insurance provides funds for lawsuits, judgement and settlements for third-party bodily injury, property damage and reputational damage that occur on business premises or due to business operations.

Example
Your product injures someone, a guest gets injured at your office, your completed work destroys a building, or an employee throws a computer through a window, injuring a pedestrian.

Limit
We recommend at this stage having a limit of

Hired and Non-Owned Auto$

Definition
Hired & Non-Owned Auto insurance provides funds for lawsuits, judgement and settlements for auto accidents involving employees while driving on company business either in their personal or rented vehicle.

Example
An employee is driving in their personal vehicle to a client meeting and hits another car. The policy would provide funds for the lawsuits settlement that involve the company.

Limit
We recommend at this stage having a limit of

Workers Compensation$

Definition
Workers Compensation insurance reimburses employees for lost wages and medical treatment resulting from a work-related injury or illness. This insurance is required by law.

Example
An employee trips in the office and breaks their foot or develops carpal tunnel syndrome and misses work / needing treatment. The policy would pay for the medical bills and partial wages.

Limit
We recommend at this stage having a limit of

Umbrella / Excess Liability$

Definition
Umbrella / Excess Liability insurance is the lowest cost method to add higher limits to the Auto Policy, General Liability Policy and Employer’s Liability Policy. (Employer’s Liability is part of the Workers Comp).

Example
Your lease requires $3M in General Liability Limits. You buy $1M General Liability policy and a $2M Excess policy to meet the lease requirements.

Limit
We recommend at this stage having a limit of

Property$

Definition
Property insurance provides funds for the loss of physical assets and the loss of revenue that resulted from the assets downtime. This includes the building, desks, computers, art and stock.

Example
The building that the company leases burns down and all contents are destroyed. The policy would pay for the replacement of the company’s property in the building, the revenue that was lost during the downtime and rent at a new location.

Limit
We recommend at this stage having a limit of

ERISA Bond$

Definition
ERISA Bond protects the company's retirement plan against losses caused by acts of fraud or dishonesty. This includes theft, embezzlement, misappropriation, willful misapplication and other acts. Required by law if your company has a 401k and other benefit plans.

Example
The Human Resource Manager is embezzling funds from the company 401k plan. This reimburses the company for the bonded amount in the event they cannot repay the funds.

Limit
We recommend at this stage having a limit of

Errors and Ommisssions$

Definition
Errors & Omissions / Professional Liability insurance provides funds for lawsuits, judgement and settlements involving faults made by your employees causing third-party financial loss. This includes professional advice, services provided and products.

Example
An employee makes a mistake while building a client’s network and causes an error that sets the project completion date back. The policy pays for the defense costs, settlements and judgments associated with the additional costs and lost revenue.

Limit
We recommend at this stage having a limit of

Cyber Liability$

Definition
Privacy Liability / Data Breach / Media / Cyber insurance provides funds for lawsuits, judgments and settlements for data breaches, third-party digital reputational damage, network failure, digital extortion and loss of physical records or devices.

Example
The company's network is hacked resulting in stolen employee and client data. The policy would reimburse the cost to notify data owners and provide for lawsuits, judgements and settlements that result from the hack.

Limit
We recommend at this stage having a limit of

Automobile Liability$

Definition
Automobile Liability insurance provides funds for losses related to company owned vehicles that get into an accident. The policy pays to repair or replace company vehicles, third-party bodily injury and property damage.

Example
An employee driving a company-owned vehicle hits a parked car. The policy would pay for the damage to the company vehicle, parked car and any third-party injury.

Limit
We recommend at this stage having a limit of

Directors & Officers Liability$

Definition
Directors & Officers insurance provides funds for lawsuits, settlements and judgements for decisions and actions performed by Directors and Officers while acting on behalf of the company. It includes suits brought by employees, regulators, shareholder groups and third-parties suffering financial loss.

Example
The CFO lies about the financial health of the company in order to secure a new round of funding, the company violates regulatory compliance or the CEO is accused of selling property to a family member for much lower then its value. The policy would potentially pay for the lawsuit, settlement and judgement.

Limit
We recommend at this stage having a limit of

Employment Practices Liability$

Definition
Employment Practices Liability insurance provides funds for lawsuits, settlements and judgments involving employment-related lawsuits. This includes claims of harassment, discrimination, breach of contract, wrongful termination or other work-related issues.

Example
An employee is fired and then sues for wrongful termination and sexual harassment. The policy would cover the defense cost, settlements and judgments.

Limit
We recommend at this stage having a limit of

Crime$

Definition
Crime insurance reimburses the company for employee dishonesty, fraud, embezzlement, robbery, counterfeiting and forgery. The policy provides funds for lawsuits, settlements and judgments involving the employee who committed an act against a third-party.

Example
A manager creates fake invoices, an employee forges checks or an employee working on a client account steals funds. The policy reimburses for the lost funds.

Limit
We recommend at this stage having a limit of

Fiduciary Liability$

Definition
Fiduciary Liability insurance provides funds for lawsuits, settlements and judgements for fiduciaries of employee benefit plans.

Example
An employee claims they purchased disability insurance from the company and when injured are told they never purchased the policy. The policy would pay for the lawsuit, settlements and judgements.

Limit
We recommend at this stage having a limit of

Foreign Package$

Defined
Foreign Package insurance provides funds for employee injury, repatriation, evacuation/extraction or terrorist threats when employees travel internationally. Further the policy pays for third-party bodily injury & property damage, automobile liability or company property damage.

Example
An employee traveling in Asia gets food poisoning and spends a week in the hospital then is flown back to the US in a private jet. The policy pays the medical bills and transport fees.

Limit
We recommend at this stage having a limit of

Trade Credit$

Defined
Trade Credit and Political Risk are often covered under the same policy. Trade Credit reimburses the company for client insolvency and delinquent payments as it relates to accounts receivable. While Political Risk reimburses the company for non-payment by foreign buyers due to currency issues, political unrest and expropriation.

Example
Your client files bankruptcy and has outstanding debts to your business of $200,000. The policy would reimburse you for that amount, after the deductible. Or a foreign government takes control of your assets in their country. The policy would pay for the value of lost assets.

Limit
We recommend at this stage having a limit of

Total Premium$

Moving Forward

You will need a general idea of what business insurance is, what type you’ll need to buy and what to budget in the proforma. Most likely your first interaction with business insurance will be a contractual requirement from a client or vendor. Of course, it's best to be prepared with some knowledge of what your company needs are.

There are many ways to get this information, however, our ‘biased’ opinion is to contact a commercial insurance broker. As your company grows, the broker should be able to guide you through the process of purchasing insurance and your overall risk management strategy.

Did we mention we are commercial insurance broker?

Moving Forward

If you still have questions you should contact a commercial insurance broker. Have them review the contract, the quote, and the policies, as well as the business’ insurance program. They should provide you with a cost-free consultation and make some suggestions. Make sure you find a broker that understands your industry!

Did we mention we are a commercial insurance broker?

Moving Forward

If you still have questions you should contact a commercial insurance broker. Have them review the contract, the quote, and the policies, as well as the business’ insurance program. They should provide you with a cost-free consultation and make some suggestions. Make sure you find a broker that understands your industry!

Did we mention we are a commercial insurance broker?

Moving Forward

If you still have questions you should contact a commercial insurance broker. Have them review the contract, the quote, and the policies, as well as the business’ insurance program. They should provide you with a cost-free consultation and make some suggestions. Make sure you find a broker that understands your industry!

Did we mention we are a commercial insurance broker?

Moving Forward

If you still have questions you should contact a commercial insurance broker. Have them review the contract, the quote, and the policies, as well as the business’ insurance program. They should provide you with a cost-free consultation and make some suggestions. Make sure you find a broker that understands your industry!

Did we mention we are a commercial insurance broker?

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