I
have homeowners insurance so that covers my business
This is one of the most common statements we hear from people
we are working with. What must be understood is that if your business
is incorporated, or has a different name than your personal name
your homeowners Insurance program will most likely not cover you
for losses related to business equipment. If they do offer an
extension of coverage you will most likely find that it is limited
on the amount of Business Property they will cover, and there
is no liability extended to your business pursuits.
My
homeowner’s policy covers my business property
This is correct, up to a limit. Take a close look at your policy
and the outlines of personal property. Most homeowner’s
policies allow for about $1,000 of business property to be included
in your coverage. Anything over this amount should be insured
through a Business Package.
I
never have anyone come to my location so I don’t need coverage
Keep in mind that your liability extends to situation where you
are also off location and working on your customers site. Situation
can occur where you accidentally break or damage the property
of the person you are dealing with, or there could be an altercation
of some type that could pose a liability issue. Liability is not
only for your location but an extension of your business. (i.e...
you are a carpet cleaner and accidentally bump a vase worth $5,000
while cleaning the floor, this is a liability issue and would
be covered under your General Liability coverage)
I
only make recommendations to people; it is up to them to make
sure it is correct
Although this is true, it is all subject to interpretation. If
you have been paid by someone to provide consultation, and the
information you have provided to them is incorrect or inaccurate,
and it causes loss or harm to them or their business you are liable
for damages. This is where Professional Liability will provide
coverage for the acts that were performed. (i.e... An accountant
informs you that you are able to take a full deduction for something
questionable. You take the deduction and get audited by the IRS,
and are found guilty, and owe taxes on this item. Professional
Liability would be used to pay the amount owed as you relied on
the accountant to provide correct advice and they did not)
I
can’t afford the coverage
In a nut shell you can’t afford not to have the coverage.
One mistake or situation could cause your business and personal
assets to be wiped out. Insurance is there to provide you with
peace of mind in knowing that if an error were to be made you
will have the resources available to defend and if necessary pay
for the incident. We all want our business to succeed, but if
we leave the door open and don’t get adequate coverage we
could be on the road to success, and one situation causes all
we have done to be lost. Just think how that would make you feel.
It
is only me and my partner and we have 1 employee, we don’t
need Workers Compensation
Georgia law is very specific with regards to this situation. Owners
are included when it comes to the number of employee’s that
a company has. You do have the right as an owner to exclude yourself
from coverage, but once you hit that 3rd person, you are required
to provide coverage. Failure to do so could result in a fine of
$500.00 per day until coverage is placed. There are auditors that
come to business locations to verify coverage, and there are several
people we are aware of that have been in this situation |
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