What budding entrepreneurs should know about Florida’s insurance requirements – II

Thu Jan 26th, 2017 on     Insurance Law,    

Last week, our blog discussed how those entrepreneurs looking to make their dreams of owning and operating a small business a reality will need to ensure that they devote adequate attention to completing mundane yet crucial tasks, including ensuring that they are in compliance with Florida’s insurance law.

Specifically, we explored how all business owners are required to purchase workers’ compensation coverage and/or commercial automobile coverage if they meet certain requirements. 

We’ll continue this discussion in today’s post, looking at some other types of insurance that budding business owners might want to consider securing despite being purely optional.

  • Business interruption or income insurance: If an insured property loss (fire, smoke, explosion, weather event, etc.) results in you having to suspend business operations, this insurance covers lost earnings.
  • Extra expense insurance: When an insured loss results in damage to your business and/or impairment of its operations, this insurance will cover additional expenses generated during the ensuing restoration period.
  • Errors and omissions insurance: If a client or customer accuses you, the business owner, of having committed some manner of oversight or error that resulted in a loss, this insurance will cover any ensuing defense costs, as well as settlements or judgments.
  • Professional liability insurance: When a licensed professional (physician, accountant, attorney, etc.) is accused of some manner of malpractice, this insurance covers any resulting professional liability claims.
  • Machinery insurance: As implied by the name, this insurance covers sudden and accidental breakdowns of equipment crucial to the functioning of the business.

Business owners who make the decision to purchase this or any other type of insurance to protect their assets must always understand that in the event they someday find themselves involved in a coverage dispute that they have options.   

Indeed, a skilled legal professional can seek to resolve coverage disputes efficiently and effectively, even exploring the possibility of punitive damages if sufficient evidence exists to demonstrate that the insurance company acted in bad faith.

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