You know a Business Owner's Policy can protect your business's property and assets. You may have heard General Liability Insurance can cover customer slip-and-fall injuries. But that's just scratching the surface of what your coverage can do.
Here are four little-known tricks your small business insurance has up its sleeve.
1. Product Liability Protection When Your Products Go Rogue
Whether you make shoes, toys, or cookies, your business is liable for physical harm your products may cause. Liability complaints may arise from a…
- Manufacturing or production flaw.
- Design defect.
- Defective warning or instruction.
If you're sued over an injury or property damage caused by your products, a General Liability Insurance policy with Product Liability coverage can help pay for legal expenses. See "5 Tips for Understanding Potential Product Liability" for more information.
Bonus perk: A Product Recall endorsement may cover the cost of recalling a defective product, disposing of it, and notifying affected customers about the recall.
2. Advertising Injury Coverage When You Step Out of Line Online
General Liability Insurance does more than cover physical damages your business might cause. It may also cover personal injuries, such as lawsuits over:
- Slander or libel.
- Using someone's images or words without permission.
- Copyright or brand infringement.
This can come in handy, for example, if someone claims you used a copyrighted image in an email campaign without permission. Check out our eBook Tweet or Twibel: The Small-Business Owner's Guide to Advertising Injury for ways to avoid these risks.
Bonus perk: Even if you're up against a frivolous advertising injury lawsuit, your business's General Liability policy can cover the associated legal expenses.
3. Business Interruption Coverage for Forced Downtime
If you have a BOP, you may also have Business Interruption Insurance. This coverage can step in when a covered Property Insurance event (e.g., a fire) forces your doors to temporarily close. It can help cover lost income so you can pay for ongoing business expenses, such as…
- Loan payments.
- Employee wages
In other words, Business Interruption Insurance can help you weather a disaster and recover quicker. Learn why it's an essential part of your business's recovery plan in "Fire Damage at Chicago's Second City Illustrates the Benefits of Insurance."
Bonus perk: If your policy includes a Contingent Business Insurance rider, you may receive coverage for continuing expenses when your primary supplier's interruption keeps your business standing still.
4. Cyber Liability Coverage for that Inevitable Data Breach
Yes, even small businesses get breached. And as cyber threats continue to grow, it's smart to invest in Cyber Liability Insurance. This policy comes in two types:
- First-party response coverage, which may help pay for forensic investigations, notifying affected customers, PR services, and crisis management after a breach.
- Third-party defense coverage, which may cover legal costs if your business is sued over allowing a data breach to happen.
Bonus perk: Cyber Liability Insurance may also cover cyber extortion expenses when hackers hold your data hostage and demand a ransom or when a DDoS attack knocks your business offline.
Wondering how much the nifty coverage detailed here may cost? Check out Insureon's 2014 business Insurance Cost Analysis or fill out our online application to receive free small business insurance quotes.
And for more hidden insurance gems, read "7 Things You Didn't Know Insurance Could Cover."