Start-Up Business Insurance

Every year, thousands of entrepreneurs venture out to start their own business. What drives these people to work long hours, little pay in the beginning, and risk it all? That incredible feeling that you get from starting your own company, seeing it succeed, and knowing you are the boss and it was your vision that made it happen. These brave entrepreneurs start a vast array of new business enterprises ranging from Home-Based businesses such as: Consulting, Web-Design, E-Commerce, Restauranteur, Bed & Breakfast, Commercial Cleaning Service, Senior Care Services, Import/Export Business, New Product Development, Child Care Services, Retail Store, Property Management/Investment, Construction, Manufacturer, Medical Devices Distributor, Media, to signing up with one of the 1000’s of franchise businesses that are available to you these days. Since the web is currently everywhere, you don’t have to limit your business to just your local area, you can sell to the entire world. In current times, there is no limit to what business you can start. Also, with more companies making software for mobile devices, the sky is the limit to what new and exciting business opportunities are available to entrepreneurs.

After you have done your due diligence, research, market research, and financial planning, let PJO Insurance Brokerage put together an insurance plan that fits your needs and protects your hard earned assets.

Consulting

Too many times, consultants who work from a home office assume that their standard homeowner’s policy will cover losses related to a home-based business. Unfortunately, that is not the case. A typical homeowner’s policy may cover as little as $2,500 for in-home inventory and equipment (such as computers) and $250 for incidents that occur outside the home. As any business owner will tell you, it’s very easy to have much more then $2,500 invested in your business.

Owners feel that liability insurance wouldn’t be an asset to their business, but what if a client fires you and sues you for a large sum of money due to non-performance? Do you have funds put aside to hire the attorney or, worst yet, pay a huge amount in case your client wins his case? With just a homeowner’s policy, you are not covered. What if a client comes to your office and slips and falls on your front porch? Again, you are not covered. Worst, yet, what coverage do you have if you suffer a house fire or other disaster and the insurance agent discovers you ran a home-based business but didn’t include that on your policy? Then your coverage for the fire could possibly be void – for both home and business. These are worst-case scenarios, but that is why you have insurance, because these things do happen. It is protection when something goes wrong. PJO Insurance Brokerage can show you policies and coverage choices to keep you protected. The most common policy is Professional Liability Coverage. For professionals who provide services, this type of insurance protects you and your company against claims by clients related to the performance of your work. This can include: alleged negligent acts and errors or omissions resulting from your performance, and protection from loss of client data, negligence or non-performance claims. Professional Liability policies may also cover attorney fees and judgment awards; personal liability (libel and slander); intellectual property; and covers employees and independent contractors.

E-Commerce

Electronic commerce, commonly known as e-commerce, ecommerce or e-comm, refers to the buying and selling of products or services over electronic systems such as the Internet and other computer networks. However, the term may refer to more than just buying and selling products online. It also includes the entire online process of developing, marketing, selling, delivering, servicing and paying for products and services. The amount of trade conducted electronically has grown extraordinarily with widespread Internet usage. The use of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems.

When an ecommerce business begins to grow, new risks mount and site owners should examine insurance options. Online businesses differ from their brick-and-mortar counterparts in ways that present unique challenges for insurance companies. A typical small ecommerce business might operate in the following manner: the business owner runs the site from his/her desktop in Phoenix, AZ; the “store” is on a server in Los Angeles, and a third-party fulfillment company houses the products in Kansas City, MO. Data security, in which the most commonly publicized areas of exposure involve unauthorized access to customer data and/or the dissemination of customer data by accident or through fraud . For online merchants, “it becomes an added obligation to protect that data. There are potential liabilities if that information is compromised or exposed. What happens when a business interruption is caused by third-party providers? At times, business may be interrupted when customers are unable to access the website because of disruption or denial of service. Server problems during the Christmas-buying season can have a devastating impact. Business interruption can also occur because of disasters such as a fire at secondary support locations — your main supplier or your warehouse. In today’s world with so many new ventures starting up, it is in your best interest to have one of our professionals take a look at your e-commerce business and design a plan that will protect your business.

Software Developer

Software Developers and Information Technology companies have unique Professional Liability (Errors and Omissions Liability) technology insurance coverage needs. Most information technology companies such as computer consultants, software designers, internet designers, web site designers, and computer programmers sell technology products and services that are used by their clients in the running of their businesses. Technology insurance, such as computer consultant insurance or software developer insurance, is needed when a failure of hardware or software products or services provided to clients can result not only in critical mistakes being made, which can result in lost income and litigation, but also in business failure. Professional liability insurance, also known in this case as computer consultant insurance, can protect software and hardware products and services that often control key business functions such as office automation, database management, word processing, intranets, accounting and billing, e-commerce, websites, production equipment, etc. Information technology companies also face unique lawsuit exposures for intellectual property violations. Technology insurance, such as software developer insurance or computer consultant insurance, can protect from special personal injury issues involving privacy issues and computer virus attacks. Legal defense and settlement coverage for an allegation of financial loss related to professional services is specifically provided by Software Developer Errors and Omissions Liability Insurance. Should a company allege that the software they contracted with a company to develop contains a glitch and locks up their system causing lost business revenue, having an errors and omissions policy will be most beneficial in keeping your business afloat and running smoothly.

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