Is there one insurance policy to cover all of my risks?

No.  Insurance is the sale of certain risks in exchange for a premium.  No policy buys all the risks a business faces.

How many policies do I need?

Generally speaking, a business should have a general liability policy, coverage for automobiles used in the business and worker’s compensation insurance.  But there are many other policies and coverages a business should consider in minimizing their risks.

What policies should they consider in addition?

One that comes to mind is Employment Practices Coverage.  This protects the business in its role as an employer (with certain limitations) from suits for wrongful employment practices.  Another to consider is Directors and Officers Coverage.  This provides certain levels of coverage to the individual directors and officers for acts for which they may bear personal responsibility.

What about pollution coverage – I hear a lot about it?

Businesses may need pollution coverage.  This is especially true of the business deals in chemicals, hazardous materials, bio materials, or other such products.  Pollution coverage is often limited and is sometimes provided by sub-endorsement which means it is subject to a lower amount of coverage than other losses under the policy.

What other kinds of insurance should I consider?

The list is quite long, but think about health insurance for employees, disability insurance, dental, life insurance, and key man life insurance.

What is key man life?

This is life insurance on key people whose death would render a severe risk to the business.  The coverage is paid to the business to soften the loss of the key person.

What if my work fails – is it generally covered?

Most general liability policies cover a company for certain damage caused by faulty work but not for re-doing the work itself.  Otherwise the insurance company would become a guarantor of the insured’s work and they will not accept that risk.

How do I check my insurance on a business to see what I have and/or need?

Working with your agent or broker is the logical starting point.  But, your attorney may be able to help you better understand the limitations on certain coverages or risks that you still retain within the business.