You have a great business idea, and you’re talking to your first banker, who says, “everything looks good, but we need to have a look at your insurance program first.” What insurance program? Hi I’m Jeff Gordon from Gordon Atlantic Insurance.
Business Insurance Basics
What are the basics of an insurance program for a new or small business?
Property and Liability Package: What Does It Cover?
The first part is what’s called a “property and liability” package. Let’s unbundle this: property is your “stuff” for lack of a better word. You may own a building, you may own contents, stock, inventory, and furniture. That’s one piece.
The other is liability. Suppose someone comes into your business and slips as soon as they walk in the door. They sue you for their pain and suffering as well as for any medical bills. Liability is part of the core of any business insurance package.
What Does It Not Cover, and How Can I Get The Coverage I Need?
These typical insurance packages don’t do everything, so there are some other things that do the rest.
Auto Coverage: Even If Your Company Doesn’t Own Any Cars
For example, what about automobile liability? You might say “well, we don’t own any cars,” but perhaps your employees use their own cars to drive around on company business. And so you need to talk about auto insurance.
Worker’s Compensation: Mandated By The State
Another is worker’s compensation. Worker’s compensation is actually a statutory type of insurance. What that means is that the state tells you what kind of insurance you’re going to have. They have the regulations and all the rules are set by the state for worker’s compensation.
About Geoff Gordon
Geoff Gordon has been the owner/president of the Gordon Atlantic Insurance agency since 1987. Gordon Atlantic Insurance provides commercial and personal insurance to businesses and families throughout Massachusetts.
A prolific writer and recognized industry thought leader, Geoff has contributed articles to Banker & Tradesman, a regional trade periodical, and served on the Quincy Patriot Ledger’s Board of Economic Advisors column. He is a member of the Plymouth Rock Assurance Agents Advisory Council as well as the Bunker Hill Insurance Agents Advisory Council. Geoff has presented to the Financial Planning Association’s (FPA) education series and teaches locally. Most recently Geoff spoke to a TEDx conference on “Personal Risk for a Rich Life” in February 2016.
Geoff obtained his Certified Financial Planner (CFP®) designation in 1985, the Certified Insurance Counselor (CIC) in 1995, and his Certified Risk Manager (CRM) designation in 2004, and serves as an Asssociate Faculty member of the Institute of Insurance Education and Reasearch, a national credentialling organization.