You never know when impediments and incidents can occur. Get a Business Owner’s Policy from Maltz Insurance today to avoid any fallouts that can affect your business.
A type of broad business insurance policy, Business Owner’s Policy or BOP provides businesses with some of the most vital forms of insurance protection. In most cases, it includes general liability insurance and property insurance. Though a BOP does not protect a business against all risks, this coverage is significant enough and may even warrant additional coverage in order to alleviate risk. One of the key areas of concern is poor employee performance.
Mistakes made by an employee
As a representative of the company, an employee acts on behalf of your company. Which means any action performed by the individual is your company’s responsibility. So, the company is also liable for an employee’s mistakes. Damages created by an employee are more often covered by the general liability insurance policy, which is a protection provided by BOP. For example, an employee demonstrates the usage of a product to a customer who wishes to buy the product. The customer buys the product and tries to utilize it at home, for instance, according to the employee’s instructions. In the event, the consumer suffers burn injuries. For this, the employee or the business is sued for negligence. A BOP even covers the legal fees associated with a lawsuit besides covering the medical bills due to the mishap that is predominantly the employee’s mistake.
Dishonesty can be worrisome for business owners. Mistakes are just errors but when employees are dishonest, they may try to misuse the critical personal information of a customer. Though unintentional, it may lead to harm and by law, the company becomes responsible for the employee’s actions, in these cases. Liability coverage can be obtained with a BOP, however, the coverage may fail to provide relief in more serious situations. You may want to invest in an umbrella liability or extend the level of BOP protection to a higher amount. That way your protection is ensured.
Contact our agents at Maltz Insurance to know more about the type of coverage that you require. Learn about other incidents that can face with your employees and which level of liability is the best for you and your company.