Hockey fans following the NHL playoffs right now have enjoyed a number of nail-bitingly exciting games in the last week or so, including multiple matchups that have gone into overtime. One such game, played between the Boston Bruins and the Pittsburgh Penguins last Wednesday, saw Bruins forward Greg Campbell block a slap shot by diving in front of it.
While he prevented his opponent from scoring, Campbell took the force of the puck straight to his tibia, which ended up breaking the bone. (After the fracture, Campbell spent an agonizing minute on the ice waiting for a stoppage of play.) Now Campbell is out for the rest of the playoffs, leaving the Bruins without a key member of their squad when the stakes are the highest they’ve been all season.
If you’re a small-business owner, you’re all too aware of how a single unexpected event can upset the balance of your business. One advantage you have over a professional sports team, however, is that you have the opportunity to buy various types of business insurance to keep you protected no matter what happens to you and your key players.
Here’s a look at how various types of business insurance can help you protect yourself and the business you’ve worked so hard to build.
Protect Your Team to Protect Your Business
Chances are, you and your employees are the most important assets your business has. Here’s how you can prevent an unanticipated illness, injury, or death from wreaking havoc on your revenue.
- Workers’ Compensation Insurance. Say you own a hair salon and you’re sweeping up one night after a long day—it’s prom and wedding season. But you’re tired and—whoops!—slip on the hair. You throw your arms out to catch yourself and wind up with two broken wrists. How are you going to keep all your appointments in the next two months while you heal? Chances are, you won’t be able to. And if you’re a sole proprietor, your only option may be to cancel all those appointments. Luckily, if you have a Workers’ Comp policy, you’ll be able to collect benefits to cover your medical bills and possibly some of the wages you would have earned had you been able to work.
- Key Persons Insurance. This type of coverage essentially amounts to a life insurance policy purchased by your business for someone who is pivotal to your success. Depending on your business, you may want to purchase Key Persons Insurance on an owner, officer, key salesperson, or another essential member of your team. Some policies offer payments if the key person dies unexpectedly, and others even offer benefits if the insured party is injured or otherwise incapacitated, so that your business can keep on trucking even when the unthinkable happens to one of its most important employees.
- Directors and Officers Insurance. Popular among nonprofit businesses, D&O Insurance shields members of your board from lawsuits alleging that they mishandled funds or treated employees improperly. Investing in Directors & Officers Insurance is a must for most nonprofits that want to attract strong leadership: without this coverage in place, leadership teams would be responsible for funding their legal defense from their own pockets. Most potential board members are more willing to serve on a nonprofit board when they know they’re not open to legal liability. (Read more about how D&O Insurance benefits nonprofits.)
When Does It Make Sense to Insure Your Team?
Most states mandate Workers’ Compensation Insurance, but Key Persons and D&O coverage are only necessary for a select few businesses. To get an idea of what types of coverage make sense for your business, feel free to contact an insureon agent.