There are many types of insurance to cover a small business. From property insurance on buildings or contents to coverage for your business vehicles, there is a policy to meet most of your needs. While these policies on their own may provide enough coverage, you may be unaware of gaps. Most insurance policies place limits on the amount of coverage provided for certain items as well as the types of losses that are covered. These gaps could be significant depending on your situation.

Fortunately, insurance companies typically offer endorsements that are added to policies and extend coverage to a specific type of loss or increase the amount of coverage available. For example, if your standard policy limits coverage for an outdoor sign to $500, an endorsement can be added if the cost of your sign exceeds that limit. Coverage may also be extended to include the personal property of others, normally excluded in the policy language. This could be a much needed option for repair businesses or dry cleaners where another’s property is in your possession for a time.

It is important that you look at the coverage provided by your business policy to determine if they are adequate for your needs. Your business insurance agent should be able to explain the limitations and what options could be added to increase coverage. You may want to start by making a list of questions applicable to your particular business. You have worked hard to make your business a success. You owe it to yourself to have adequate coverage in place to protect what you have built.

The number of employment-related claims has increased dramatically in the past decade. And while multi-million dollar verdicts against large corporations make the headlines, claims against smaller companies are becoming more common.

Faced with that possibility, owners of small and mid-sized businesses are giving increased attention to policies like State Farm® Employment Practices Liability Insurance (EPLI). During the 1990s, Congress passed several laws affecting the employer/employee relationship. Laws such as the Americans with Disabilities Act and the Family Medical Leave Act have created new avenues for litigation against employers. The Civil Rights Act of 1991, for instance, allows victims of intentional discrimination to request a jury trial and seek compensatory and punitive damages. Many states and municipalities also have enacted their own statutes and ordinances. Volatility in the economy, the changing nature of the employer/employee relationship and the publicity that surrounds large jury verdicts are often cited as causes for the increase in employee claims against employers.

Policies like EPLI protects the employer against claims by employees (or applicants for employment). Common allegations include discrimination (including age, gender, religion, race and sexual orientation), harassment and wrongful termination. An important feature of EPLI is the inclusion of legal defense costs. For some organizations, EPLI coverage can be combined with Directors and Officers Liability coverage (D&O), usually for a nominal increase in premium. Directors and Officers Liability protection is important, because in some cases, these executives can be found personally liable for negligent acts, errors or omissions in the performance of their duties.

There are also policies appropriate for not-for-profit organizations that includes D&O and EPLI coverage. Businesses can take steps to reduce the possibility of employee lawsuits. For example, companies may have legal counsel review policies and procedures regarding harassment, hiring and firing. Additionally, the Equal Employment Opportunity Commission (EEO) offers several publications intended to help small and mid-sized businesses (www.eeoc.gov).

Are you one of the nearly 16 million women who owns her own business? If so, you are well aware of the need for insurance to protect your assets in case of a loss. However, businesses have other assets that are just as important and should also be insured.

The most important asset to your business is you. The dream was yours from the beginning. You poured your sweat, blood and probably a few tears into making your business a success. What would happen to your dream if you were no longer around to keep it on track? A life insurance policy can provide much needed capital to keep your business afloat in the event of your untimely death. Your beneficiaries can use that money to make sure creditors are paid and supplies continue to be delivered. You could even use a life insurance policy to fund a buy/sell agreement that can assure there is a buyer for your business. A buy-sell agreement obligates a surviving partner, key employee or possibly the business itself to purchase your interest after your death. A qualified tax advisor should help you determine what is right for you, while an attorney should draw up the agreement.

Owning a business is an important part of who you are. Your business may employ one or many persons, providing wages and other benefits. A life insurance policy can help you to know your business will continue to provide these things even if you are not there to run things. Talk to your life insurance agent and see what options are available. You owe it to yourself, your family, and those you have hired.