Business Services


Business Insurance

When you start a business the last item on the “To Do List” most of the time is get business insurance. Your business insurance needs should be at the very top of the “To Do List”.

From day one the business owner opens him or herself up to risk exposures and the reality is that one lawsuit or catastrophic even could be the one event that puts the business owner out of business before the doors are even opened to the public.

Here are the 7 primary insurance policies recommended:


1. Professional liability insurance aka E & O Insurance Errors and omissions (E & O) insurance protects the business owner from harm that results from mistakes or failure to perform the job. This policy and coverage varies for each job industry.

2. Property insurance.
Property insurance is a must! Would you buy or rent a home and not have homeowners or rental coverage? Just as a homeowner’s policy covers your things so does a business owner’s property insurance policy. It covers any equipment the business uses to perform daily job tasks like computers, phones, lawn care equipment etc…, your exterior signage, any inventory and your office furniture in the event of a fire, storm or theft. Please make sure to review with your insurance professional what catastrophes might be excluded from your policy.

3. Workers’ compensation insurance.
When you hire your very first employee, you will want to make sure to get a workers’ compensation policy in place for your business. This policy covers expenses your employees may acquire if any medical treatment, injuries, disability or death results from work performed. Businesses often overlook the importance of workers’ compensation insurance because they feel they are a low risk business, but fact of the matter is an employee could slip-and- fall and sustain injuries or develop carpal tunnel syndrome resulting in a pricey workers compensation claim.

4. Home-based businesses.
Some homeowners’ insurance policies may cover a limited amount for home based businesses, but the homeowners’ policy will not have the same valuable coverages that a commercial insurance policy will have built in to the primary coverages. Take time to discuss with your insurance professional the benefits of obtaining a commercial insurance policy.

5. Product liability insurance.
If you manufacture products and place for sale to the general market it is crucial that you speak with your insurance professional about product liability coverage.

6. Vehicle insurance.
If you have company vehicles then by all means, those vehicles should be fully insured to protect against liability damages should an accident occur. If your employees are using their own cars for business use their own personal insurance will cover them in the event of an accident. Please take note that if your employees are delivering goods or services for a fee then their personal policy will not cover them during business use. This includes delivery personnel. Also, take note that due to the evolution of passenger delivery applications there are also certain limitations to personal insurance policy coverages. Speak with your insurance professional for further details and vehicle coverage options.

7. Business interruption insurance.
A business interruption insurance policy will cover your business from lost income due to a catastrophic event that makes your staff unable to work, manufacture products or make sales calls. This type of insurance will also compensate the business for lost income during the time it is unable to perform normal business functions to generate income at its physical location. A good example would be a restaurant or a retail store.

8. Garage Keepers


R.S. Financial Group, LLC., Financial Planning Consultants, Memphis, TN