19Feb

Business owners of today are constantly bombarded with decisions to make and tasks to complete in order to keep their business competitive (and afloat!). With an already endless to-do list, it can be easy to let your business’s insurance coverage fall to the wayside. However, leaving your business without proper coverage can cost you dearly in the long run, if you’re not adequately protected. No matter the size of your business, the team here at Alexander Insurance Agency of St. Charles is here to make sure that you have the right coverage for your large or small business.

Beyond the Balance Sheet: The True Cost of Operating Without a Safety Net

Small businesses commonly (and understandably) work on a very tight budget, which might tempt anyone in charge to forego coverage. It can seem very appealing to forgo any insurance coverage that is not required by law. Unfortunately, this could put your business at risk, and could end up costing you much more than what the monthly premium would be. Here are a few scenarios that could wreak havoc on your day-to-day operations:

  • Natural Disasters: If you encounter trouble from elements such as fires or flooding, you will need to absorb costs for damages and repairs. 
  • Financial Losses: You may not have a financial buffer to rely on if you encounter losses from injuries, hospital expenses, or incidents of slander. If a customer happens to injure themselves on your property, this type of lawsuit can end up costing around $20,000. 
  • Legal Trouble: Small businesses are prone to many different types of legal issues. If you happen to be sued, judgments and legal costs can damage your organization if you try to take these incidents on uninsured.

Shielding Success: Various Types of Comprehensive Insurance Policies

Some insurance coverage types are required by law once your business reaches a specific size. The Affordable Care Act mandates employer-sponsored healthcare coverage for businesses that operate with 50 or more employees. If you fail to comply, there are penalties for violating these laws. Other types of coverage are not required by law but may be quite wise to procure. 

Liability Insurance:

General liability insurance can protect your business if anyone claims you caused them bodily injury or property damage. If a customer injures themselves on your property, general liability insurance will cover attorney fees and various forms of lawsuit settlement. Some businesses feel that an actual accident could never take place on their property, so they choose to forego coverage. Don’t make this mistake!

Workers Compensation:

Workers’ compensation insurance provides benefits to employees who injure themselves on the job or encounter an illness stemming from their duties. These benefits will pay for medical bills, replace wages, or cover physical therapy for recovery. Most states require employers to provide coverage at a mandated threshold. This type of coverage is not just needed on rigorous construction sites and restaurants, as scenarios requiring coverage can arise in a split second.

Professional Liability Insurance:

This is also known as “errors and omissions insurance” and covers legal costs after you have been accused of grave mistakes or mismanagement. Negligence and failure to perform duties competently can be a common occurrence during business dealings, but if anyone takes up a form of serious fault with you, it can mean trouble. Claims of inadequate, incomplete, or late work can lead to expensive lawsuits and a large amount of red tape for any flourishing business. 

Commercial Property Insurance:

This insurance is a must for many forms of brick-and-mortar operations. It is in place to help you recover quickly and resume normal operations, with specific limits that vary based on a business’s specific needs. Vandalism, fire, theft, and natural disasters such as flooding are some of the events that may require repair and restoration. This coverage is crucial for businesses of all sizes to help navigate the financial effects of these unexpected events. Commercial property insurance typically covers losses related to totaling out or damage of your valuable physical assets. 

Get a quote here: https://www.alexins.com/business-insurance-in-st-charles-and-st-louis-county/

Employment Practices Liability:

EPLI covers businesses against potential claims by workers who feel their legal rights have been violated. The number of lawsuits filed against employers of all sizes has been steadily increasing, and many smaller companies now need protection against frivolous acts. Some insurers provide this coverage as an endorsement of the standard business owners policy, and other companies offer EPLI as a form of standalone coverage. Here are some examples where Employment Practices Liability is helpful:

  • Sexual harassment
  • Discrimination
  • Wrongful termination suits
  • Evaluation deemed negligent
  • Failure to promote or hire
  • Wrongful discipline 
  • Lack of upward mobility
  • Wrongful infliction of intense emotional distress
  • Mismanagement of allocated benefits

Threads of Uncertainty: How Attention to Detail Can Save Your Business from Risks

While there are now so many different varieties of insurance products on the market, it’s necessary to look at your business’s greatest areas of risk. E-commerce businesses pose the need to protect sensitive data, which is vital to your company’s survival and productivity. If your business relies on brick-and-mortar presence, damage to your building’s physical structure can be risky for your financial well-being. Having a professional risk assessment will allow you to determine exactly what price point is right for you in detail about every provider.

Resilience 101: Planning for Prosperity with a Reliable Insurance Ally

We would love to meet you here at the Alexander Insurance Agency of St. Charles to go over your business insurance options with you! Guiding our clients while they look for business insurance is the beginning of a rewarding and long-term partnership. We work hard to ensure that we understand every facet of your business and that we listen to identify specific needs. Even if certain types of coverage are not required by law, it could prove to be incredibly risky to operate without them. We can assist you with the selection, implementation, and constant re-evaluation of your needs for optimal results. Don’t gamble with your business, and securely bet on us for unbeatable insurance coverage – we are in our 67th anniversary prime, and are eager to assist with securing the best protection for your business!