The
success of any business depends on hard work and ingenuity. Business insurance
helps protect the effort and money you’ve invested in your business is covered
in case a disaster strikes. But
because businesses are so diverse, there are a variety of optional coverage
that you should
consider, too. These extras are added to your business insurance policy as
endorsements.
Here’s
how to help cover four common business risks with endorsements.
1.
Data breaches: Any business that has
personal or medical information about customers, tenants or employees is at
risk for a data breach.
Don’t
think it can’t happen to you? A study commissioned by Hartford Steam Boiler and
conducted by the Ponemon Institute found that over half of small businesses
have experienced a data breach, and many did not inform victims as required by
state law. Most states have breach notification laws that not only require a
business owner to inform any affected individuals (customers) of a data breach
but also specify the manner and period in which the business owner must inform
customers.
Two
coverages you may want to consider:
•
Data Breach Response Expenses: It could cover your expenses to notify affected
individuals of a breach per state laws.
•
Data Breach Liability Coverage: It could cover damages that you are legally
obligated to pay due to fraudulent use of your customers’ non-public personal
information that is lost, stolen or accidentally released. It also covers the
cost to defend lawsuits seeking damages.
2.
Employment liability: These days, hiring, firing and day-to-day employee
management can be a risky business. You’d like to think that your employees
would never dream of filing a claim or suit against you or your business for
discrimination, wrongful termination, harassment or sexual harassment.
Unfortunately, it does happen. Responding to claims or suits like these will
require time and money.
The
Equal Employment Opportunity Commission (EEOC) received 89,385 charges of
workplace discrimination during fiscal year 2015, which ended in September.
EEOC also secured more than $356.6 million for victims of discrimination in the
private sector.
With
Employment Practices Liability Coverage, you will not have to face an
employment claim on your own. It can help protect you against liability damages
and cover defense costs.
3.
Professional liability: You’re expected to have technical knowledge or training
in a particular area of expertise or perform certain services according to the
standards of your profession. If you fail, you could be held responsible for
any harm that you caused to another person or business. Professional liability
coverage can provide you with protection for claims arising out of negligent
business or professional practices.
4.
Personal identity theft: As a small business owner, your personal credit may be
tied closely to your business. Having your own identity stolen, could
jeopardize your credit and affect your business operations.
Last
year, fraudsters stole $16 billion from 12.7 million U.S. consumers, according
to the 2015 Identity Fraud Study, released by Javelin Strategy & Research.
That means that every 2 seconds in 2014 there was a new identity fraud victim.
Personal
Identity Recovery coverage can be added to a business insurance policy1 and
provide:
•
Case management services to assist you in recovering a personal identity by
contacting authorities, credit bureaus and businesses to correct the records.
•
Reimbursement for necessary and reasonable expenses that you incur because of
identity theft, including lost wages, mental health counseling and child and
elder care supervision costs.
Talk
to an Erie Insurance agent to learn more about the risks that you may face and
how to protect your business.
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