Business.com Media, Inc. All rights reserved. | 888.441.4466

Business.com Media, Inc. All rights reserved. | 888.441.4466 Table Of Contents Overview Page 1 Commercial Business Insurances Page 2 General Liability, Commercial Liability & Product Liability Page 2 Employee Insurances Page 2 & Page 3 Workers Compensation Insurance Page 3 Unemployment and Disability Insurance Page 3 Business.com Insurance Checklist. Page 4, 5, & 6

Business.com Media, Inc. All rights reserved. | 888.441.4466 Fend Off Aggressive Liabilities Just as a soldier needs a protective shield and proper pieces of sturdy armor to defend a kingdom, your small business also requires defensive insurance to guard you from surprise attacks, conflicts, and unwanted liabilities. Which type of protective gear will you choose in order to safeguard your startup? Make sure your infantry is well prepared to face any sort of possible issue. Virtually all businesses are required to purchase some type of insurance in order to legally practice business. The first reason you need business insurance is to comply with the law. Secondly, if you are in business without insurance, both your business and personal assets are at risk, even if you have taken precautions to shield yourself from some forms of liability. If you have something to lose, business insurance will significantly reduce the chance of losing it due to an accident or misfortune. Even if youve incorporated your business, doing so is not going to protect attorneys from suing you or your business for damages. If they win, they can seize your assets, garnish your wages, and often pierce corporate veils to attach liability to you, personally, for judgments against your business. Insurance, more than incorporation, protects you from liability losses. There are many different types of business insurance coverage and a wide variety of policies to address specific business needs. Generally, there are two kinds of business insurance - commercial business insurance and insurance for business employees. Do your research and find out which type of insurance youll need to add to your infantry to safeguard your business.

Business.com Media, Inc. All rights reserved. | 888.441.4466 Must-Have Protective Insurances Commercial Business Insurances General Liability. Provides coverage against legal actions resulting from accidents, injuries and claims of negligence. Product Liability. Protects against financial loss resulting from injury caused by a product defect. Even if you do not manufacture the product, if you sell or distribute it, you are potentially liable According to the U.S. Consumer Product Safety Commission (CPSC) ,more than 59 million items were recalled due to safety violations, design flaws or unforeseen hazards that put their owners at risk in 2012. Professional Liability. Protects against claims of malpractice, negligence or errors in providing a service. Some states require professional liability insurance for certain professions, such as physicians. Commercial Property. Covers loss of property (broadly defined as lost income, business interruption, buildings, computers, documents and money) against fire, smoke, severe weather, vandalism, and other disasters. According to Enhance Insurance, $17,612 is the average cost of an arson. Home-Based Business. If you run a business out of your house, your homeowner's insurance most likely does not provide coverage for professional or product liability or work-related accidents. You may need to get coverage expressly for your home business. Business Insurances for Employees If you have employees, youll most likely need to insure them. Here are three types of business insurance for employees:

Business.com Media, Inc. All rights reserved. | 888.441.4466 Business Insurances for Employees cont., Workers Compensation Insurance. Covers employees if they are injured on the job. According to the U.S. Bureau of Labor Statistics, 3 million nonfatal workplace accidents occurred in 2012 3.5 workers out of every 100 employees were injured on the job Some states have exemptions if the business only has one or two employees. Premiums are based on a percentage of payroll costs and work category, with a greater percentage charged for types of work that carry greater risk. Unemployment Insurance. Although they are not an insurance policy, you are required to pay state taxes to fund unemployment insurance programs. Consult your state's tax office about how to properly register your business and how you will be taxed. Disability Insurance. Required for businesses based in California, Hawaii, New Jersey, New York, Puerto Rico, or Rhode Island. Even if your state doesn't require it, you may wish to offer disability insurance as part of an employee benefits package. A great source for more detailed information, as well as links to state insurance departments, is Insure U, the insurance university for small businesses. Insure U is put together by the National Association of Insurance Commissioners (NAIC), a nonprofit organization comprised of insurance regulators from the 50 U.S. states, the District of Columbia, and U.S. territories.

Business.com Media, Inc. All rights reserved. | 888.441.4466 My Needs Insurer 1 Insurer 2 Coverage Needed: Property/Casualty General Liability Product Liability Commercial Auto Business Interruption Health Insurance Life and Disability Workers Compensation Umbrella Liability Umbrella Liability Business Owner Policy (BOP) Home-Based Business Agent Broker Property Casualty Coverage: Deductible Annual Premium Policy Limits Equipment List: Purchase or Lease Documents Original Cost Current Value Replacement Value Real Estate List: Size of Rented Premise Size of Owned Premises Building Uses Building Safety Equipment Lease or Purchase Documents Cost When Purchased Replacement Cost Business Insurance Checklist

Business.com Media, Inc. All rights reserved. | 888.441.4466 My Needs Insurer 1 Insurer 2 Liability Coverage: Deductible Annual Premium Policy Limits List of perils your business is subject to Commercial Auto Coverage: Deductible Annual Premium Policy Limits Number of Vehicles Owned/Leased Minimum liability coverage required Commercial Auto List: Year Make and Model of Each Vehicle Date Purchased or Leased + Documents Current Mileage for Each Vehicle Estimated Annual Mileage for Each Vehicle Percentage Personal Use Percentage Business Use Business Interruption Coverage: Deductible Annual Premium Policy Limits Average monthly sales and costs Cost to relocate business Cost to associated to interruption Health Insurance Coverage: Deductible Annual Premium Policy Limits Business Insurance Checklist

Business.com Media, Inc. All rights reserved. | 888.441.4466 My Needs Insurer 1 Insurer 2 Percentage of cost charged to employees Umbrella Insurance Coverage: Deductible Annual Premium Policy Limits Business Insurance Checklist

Business.com Media, Inc. All rights reserved. | 888.441.4466 Arm your business. Thanks and come back soon. Each one of these insurances is vital in helping to defend a small business against possible liabilities. Look for more from Business.com on how to support a thriving startup and enable future growth and development.