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Business planning should consider insurance coverage needs

On Behalf of | Jul 26, 2018 | Business Formation & Planning |

The concept has been developed, a location has been acquired and employees have been hired. Additionally, the market has been tested and the product or service fine-tuned to meet the needs of prospective clients or customers. These are all important business planning steps for the Ohio business.

While these are all important steps, in today’s world it is also necessary to prepare for possible obstacles that may present themselves. Fortunately there are insurance policies that can help to take care of some of these obstacles. For instance, errors and omissions insurance is available. This type of insurance provides protection for the business professional whose advice or recommendation may prove to have a flaw or something is left out.

Additionally, for those companies who hire employees, there is employment practice liability insurance. This insurance can protect the company if an employee brings a claim of harassment, discrimination, wrongful termination or other such concern. Research indicates that the average claim against a small to mid-size business is approximately $125,000. This can dramatically affect the company’s bottom line and ability to continue operations.

In addition to insurance to provide coverage if there is a problem, preventing problems from occurring in the first place is the preferred method in business planning. Businesses will want to be familiar with both federal and Ohio laws that affect the business and its employees. Additionally, they will want to be certain that managers and employees are aware of company expectations and appropriate training is provided. Experienced legal counsel can assist the company in determining which types of coverage it may need and addressing any concerns that may present themselves.


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