What Insurance Do You Need?

I was speaking to a group of CEOs last week on the topic of risk management and insurance. A good question came from one of them that required a little too big of a list for the time allotted. I promised her a write-up on my blog. The question was, “How do we know what kind of insurances to be concerned about? Is there a list we can use?”

Your wish is my command as one genie once said…

This list is fairly exhaustive and certainly every policy here is not needed by every business. That being said, it acts as a good checklist to get you started:

1. Commercial Property (including Business Income)
2. Commercial General Liability
3. Commercial Auto (including liability, medical payments, uninsured motorist, physical damage, and non-owned and hired auto…but that’s it)
4. Workers Compensation (in WA State you get it through the state under labor & Industries)
5. Commercial Umbrella
6. Employment Practices Liability (you being sued by an employee)
7. Employee Dishonesty Bond (an employee stealing from you) Read an interesting article in Puget Sound Business Journal on this from a Microsoft employee stealing from them
8. Cyber Liability – This is the new hot policy. Very important – ask your agent!
9. Professional Liability (aka Errors & Omissions)
10. Liquor Liability
11. Pollution Liability (perhaps including Underground Storage Tank if applicable)
12. Inland Marine Floater (for unusual property items or instruments of communication and transportation)
13. Fiduciary Liability
14. ERISA Bond
15. Products Liability (for those that can’t get it through the General Liability)
16. Reputation Risk
17. Motor Truck Cargo (if you haul goods owned by others)
18. Aviation
19. Flood & Earthquake (see Difference in Conditions – DIC policy)
20. Key Person Life Insurance
21. Group Medical (including Dental & Vision)
22. Short and Long Term Disability for group or key people
23. Long – Term Care for key employees

This is off the top of my head. There may be more specifically needed for certain industries. They often get lumped into Inland Marine. Like I said, you definitely don’t need them all. The question is – are there one or two that you don’t have, but need?

© 2011 Dan Weedin. All Rights Reserved