Experts explain in detail which policies are recommended to protect a business on American soil
Opening a business in the United States can be an opportunity to expand your market and increase profits, but it also brings risks and challenges. One of these is the need to protect assets, employees and customers from possible damage, accidents or legal proceedings.
Therefore, it is important for an entrepreneur who intends to start a business or even for those who have already managed to take their first steps, to have insurance suitable for each activity and the characteristics of the operation and the market. In addition to providing security and peace of mind, some coverages may also be required by law or contracts with suppliers or customers.
To avoid losses, this is a precaution that guarantees compliance with legal regulations and gives greater credibility to the American market.
“Everything becomes more challenging when you are away from home. Setting up a company as an immigrant is completely different, you have to start from scratch in everything, from understanding the bureaucracy to knowing and captivating the public,” says Tiago Prado, CEO of BRZ Insurance.
“This is why the security and stability of this business is so important, so as not to put all the effort invested at risk. One lawsuit or catastrophic event can be enough to wipe out a company before it even has a chance to get off the ground,” he warns.
The 5 fundamental insurance policies
Tiago highlights 5 essential insurance policies for a company operating in the USA.
• Errors and Omissions (E&O) – Professional indemnity insurance
Also known as errors and omissions (E&O) insurance, it covers a business against claims of negligence in the event of damages resulting from errors or failures to perform.
“There is no one-size-fits-all policy; each industry has its own concerns that will be addressed in a customized policy written for a company,” says the expert.
• Commercial Property – Commercial Property Insurance
“Whether your business is in a rented or owned location, property insurance is essential. It covers equipment, signs, supplies and furniture in the event of fire, storm or theft. It’s worth remembering that this policy It does not cover mass destruction events, such as floods, earthquakes and hurricanes. If a company is based in a region that presents this type of risk, it is recommended to have a specific policy for these phenomena.”
• Business Interruption – Business Interruption Insurance
This insurance is created for situations caused by disasters or catastrophic events and when company activity is interrupted due to force majeure.
“A recent example was the pandemic, which forced many companies to close their doors and cease operations for months. During this disruption, the company suffers from revenue losses due to the inability of staff to work in the office, manufacture products or hold sales meetings. This type of insurance is especially applicable to businesses that need a physical location to do business, such as retail stores, restaurants, and factories, and will protect against business interruption by compensating a business for losses of revenue during these events,” he says.
• Workers’ Compensation – Workplace Injury Insurance
The Workers’ Compensation policy must be taken out from the moment the company hires its first employee. It will cover medical care, disability benefits and death if an employee is injured or dies as a result of the company’s work.
“Even if employees’ jobs are seemingly low-risk, slip-and-fall injuries or medical conditions such as carpal tunnel syndrome can result in expensive claims.”
• General responsibility
Liability, or general liability, insurance helps protect your business from personal injury and property damage claims. These types of complaints can arise at any time during the day-to-day running of your business, regardless of how much care is taken to avoid accidents.
“General liability insurance helps cover the costs of responding to a claim that your business caused property or physical damage. It can help pay medical bills for a customer who was injured at your establishment, by repairing a wall accidentally damaged by a service provider in a customer’s home, legal costs for defending the company in court, reputational damage resulting from malicious prosecution, slander, defamation, wrongful eviction, invasion of privacy, damages to advertising such as copyright infringement of company ads, damage to rental property caused by covered loss, such as fire, lightning or explosion,” concludes Tiago.
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Source: Terra
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