Running a business in Florida can be risky, especially if something goes wrong and you are held liable. That’s why it’s important to have the right kind of business insurance to protect your company from financial losses due to lawsuits or other legal claims.
In this article, written by Evelyn Calabuch, founder and CEO of American US Insurance, a Florida Independent Insurance Agency, we will provide an overview of different types of business policies available in Florida so that entrepreneurs can make informed decisions about their coverage needs. We will also discuss some common misconceptions about these policies and explain how they work. So, let's get started!
According to a survey by Insureon, 75% of U.S. businesses are underinsured, and 40% of small business owners have no insurance. Disputes with clients or contract claims are some of the most common risks. Client complaints or contract disputes account for 22.2% of claims, while employee injuries account for 10.6%. Cybersecurity risks are also a growing concern in today's digital age, with 27.9% of small businesses experiencing cyberattacks, data breaches or hacking. It is therefore important to ensure that your business is properly insured to protect against these potential liabilities. The data on business insurance from IBIS World shows that the market size of the Business Insurance industry in the U.S. has grown 2.2% per year on average between 2018 and 2023, indicating the need for insurance for businesses.
What Type of Liability Insurance do I Need for my Business?
There are several types of liability insurance for businesses operating in Florida, each designed to cover different kinds of risks. The most common type is general liability insurance, which covers bodily injury and property damage caused by negligence or with permission on behalf of the insured party (i.e., the business). This policy typically provides protection against claims resulting from accidents involving customers, visitors, employees, or products manufactured by the company itself. It may also include medical payments coverage for medical expenses related to injuries sustained at your place of business as well as personal/advertising injury coverage for libel/slander suits and copyright infringement allegations.
Professional Liability Policies for Florida Businesses
Business owners should also consider taking out professional liability insurance, which provides protection against claims arising from the performance of services. This type of policy can be particularly useful for businesses that provide services to customers or clients such as accounting firms, law firms, engineering firms and consulting companies. Professional liability policies generally cover errors and omissions made by the insured party while performing their professional duties. They can also provide protection against breach of contract or negligence.
Florida Workers Compensation Explained
As a Florida business owner, another way to protect your business and employees is to have a workers' compensation insurance policy in place to cover medical expenses, lost wages, and disability benefits for employees who suffer an injury or illness on the job. This type of coverage not only helps your employees when they need it most, but it also protects your company from potentially expensive legal battles. In Florida, workers' compensation insurance is mandatory for employers with four or more employees, whether they are full-time or part-time. The policy can exclude certain individuals, such as independent contractors, sole proprietors or business owners with no employees, and anyone who works in a casual or domestic capacity. It's important to note that failing to carry workers' compensation insurance when required can result in hefty fines and legal penalties.
Other Types of Business Insurance in Florida
For businesses that own property, such as buildings or equipment, commercial property insurance is essential. This type of policy provides coverage for physical damage to the insured’s property due to fire, theft, vandalism, and other perils. It may also include coverage for loss of income due to a business interruption caused by the covered peril. Business owners should also consider other types of policies such as cyber liability insurance and directors & officers (D&O) insurance, which provide protection from claims stemming from data breaches or mismanagement.
Cybersecurity Insurance for Florida Businesses
This article from Insureon shows that Only 16% of small business owners think they are at risk for a cyberattacks. Cybersecurity has become a critical issue for businesses in recent years, as cyberattacks continue to increase in frequency and sophistication. According to a report by IBM, businesses in the US experienced an average data breach cost of $8.19 million in 2020, which is a significant increase from previous years. It is important for businesses of all sizes to remain vigilant when it comes to cybersecurity, as small businesses are particularly vulnerable to attacks. In fact, a report by Verizon found that 43% of cyberattacks target small businesses. This is partly because small businesses often have limited resources to devote to cybersecurity. However, the cost of a data breach can be equally devastating for small businesses, with the same IBM report finding that small businesses experienced an average cost of $2.35 million per breach. Therefore, investing in cybersecurity measures is an essential step that businesses must take to protect themselves and their customers.
Conclusion for this Florida Business Insurance Article
Finally, it's important to understand that business insurance policies are not one-size-fits-all. Business owners should evaluate their individual needs and potential risks to select the right policy for their business. It is also important to remember that no insurance policy can provide complete protection against all types of claims, so it's important to remain diligent and aware of potential liabilities. By understanding the different types of business liability policies available in Florida, entrepreneurs can take the necessary steps to ensure their business is adequately protected.
This overview should help you better understand what type of business coverage may be right for your company and how these policies work. With the proper coverage in place, you can rest assured that your business is protected from any potential financial losses. If you have any further questions or would like to discuss your business' coverage needs in more detail, feel free to contact our licensed insurance agents at American US Insurance. We’ll be able to provide personalized advice and create the perfect policy for you.
By taking the time to learn about different types of business insurance options available in Florida, you can be confident that your business is well-protected from any unexpected financial losses. Protecting your business should always be a top priority, so don't delay in taking the necessary steps to ensure you have the right policy for your company. Good luck!
Written by: Evelyn Calabuch | American US Insurance - Founder / CEO
Learn more about business insurance here