That’s it. Just one. Just a single accident or negligent act can wipe out a small business in a heartbeat. If you are a small business owner, especially in a specialized industy such as childcare, it is critical for you to understand the risks and how to protect yourself.
For example’s sake, let’s stick with childcare. If you provide childcare in-home, your homeowner’s insurance may or may not cover some of your liability exposure. And while it may provide limited coverage for business property, it won’t address child abuse claims or professional liability risks related to your responsibility as a childcare provider. You may think a claim such as abuse is impossible. However, even a false claim can result in serious financial loss due to the cost of defense.
For a daycare center, focusing on liability coverage only is a mistake. Coverage for your property, in the event of fire or flood, is critical. And, Errors & Omissions, in addition to General Liability, will help minimize your vulnerability to claims such as child abuse and other services expected of you.
Obtaining the right insurance is critical, but so is understanding the coverage you have. Find an agent who takes the time to educate you, not only on the benefits of your policies, but also the claims process. You must understand what happens if a claim is made after a policy term ends. Policies can be Occurrence or Claims Made. Do you know what type your policies are?
And finally, there are companies that offer specialized insurance packages for specific industries. They do not always replace every policy mentioned above. But, they can simplify the number of policies needed to ensure adequate coverage and the efficient handling of your claim. It is important to work with an agency that understands you risks and works with multiple companies.
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