2014

Important Insurance Policies for Professional Organizers

There's a glut of business insurance information on the web, but as a professional organizer, you know that more is not always better. In this article we've tried to declutter the important insurance information, organize it, and clarify it.

There are several insurance policies your organization company needs to know, including…

General Liability Insurance for Business Organization, Home Organization, and Closet Organization Professionals

To cover their businesses from many of the most basic liabilities, many small-business owners purchase General Liability Insurance.

General Liability Insurance pays for many of the costs of a lawsuit, including…

  • Judgments (the damages or other monetary amount a judge or jury awards to the plaintiff).
  • Settlements (lump sum payments to prevent a case from going to court).
  • Lawyer expenses.
  • Paralegal costs.
  • Various court expenses.

Third parties are anyone not employed by your business, which includes vendors, contractors, clients, customers, and others. Your General Liability Insurance policy can pay for lawsuits from third parties, who claim your business…

  • Damaged property.
  • Harmed their reputation.
  • Committed libel or slander.
  • Infringed on a copyright.
  • Caused a physical injury.

When you are tasked to reorganize someone's home, you'll be working on their property and could accidently damage it.

We've all seen this plot on any number of sitcoms. Someone knocks over their parents' "priceless Ming vase" and tries to cover up the damage. While not that cheesy, something similar could happen to your business.

If you are reorganizing a baseball enthusiast's collection of cards and memorabilia, you could easily damage or drop thousands of dollars' worth of collectable materials. Damage you do to your client's property could lead to an expensive and time-consuming lawsuit.

Property Insurance for Home Organizing Small Business

Property Insurance insures your organizing business's commercial property against a number of common damage and loss scenarios, including…

  • Fire damage.
  • Theft.
  • Acts of vandalism.
  • Certain types of weather damage (including windstorms, winter storms, and non-major storms).
  • Tornadoes.

Not all weather and natural disaster damage is included. Usually, storms that are named by the National Weather Service (e.g. "Tropical Storm Ian") won't be covered.

Property Insurance can reimbursed your business for lost or damaged…

  • Organizing equipment.
  • Computers and devices.
  • Inventory.
  • Supplies.
  • Offices and buildings.

Here's how property insurance can protect your home organizing business. A fire starts in your office. The fire is quickly contained, but even in the span of a few minutes it does a lot of damage. The sprinklers drench your computer and carpet. The wiring in one wall is melted. To replace everything and rebuild, your business is looking at a bill close to $100,000.

Because your company has adequate Property Insurance, your insurance company can write you a check to cover the cost of the lost or damaged property. In addition, your policy includes Business Interruption Coverage, which pays you for the income you lose while you are rebuilding your office.

Business Owner's Policies: Small Business Insurance for Business, Home, and Closet Organizers

Business Owner's Policies (BOPs) contain two "standard" insurance policies bundled into one lower-cost package.

BOPs help many professionals save money on their two most basic insurance policies…

  • General Liability Insurance.
  • Property Insurance.

Insurers sell Business Owners' Policies exclusively to small businesses. In addition, they have other requirements. BOPs are only available for small businesses that…

  • Don't need more than a year's worth of income protection with a Business Interruption Coverage policy.
  • Don't work in higher-risk industries.
  • Have fewer than 100 employees.
  • Don't operate in large-scale premises they need insurance for.

If your business meets these requirements, you may be able to save money on business insurance. Contact an agent now for a free quote.

Cyber Liability Insurance for Organization Services

Cyber Liability Insurance (also called Data Breach Insurance or Cyber Risk Insurance) is important for any business that has payment or personal data for its clients. Nowadays, that means pretty much all businesses.

Now that so much commerce is done digitally, your organization business probably has many digital records that contain credit card, bank account, or other personal information from your clients. This doesn't just mean web-based businesses. Most businesses generate digital records for each credit card swipe or bank deposit.

Hackers will target your business to gain access to this information as well as to try and break into your business's bank accounts. To protect your digital liabilities, your business should consider Cyber Liability Insurance with First-Party Response coverage, which can usually be included as a rider to a General Liability policy.

This coverage protects businesses when their networks are hacked. It pays for many of the essential ways your business will need to respond to this breach of private and financial data. First-Party Cyber Liability Response coverage pays for…

  • Investigatory resources to find out who hacked your business, what they took, and how they were able to breach your security.
  • Fraud monitoring / credit monitoring for clients, employees, and other people whose data may have been stolen.
  • Communication expenses to inform third parties whose data may have been compromised.
  • Reimbursement for cyber extortion attempts (when hackers threaten to install viruses or other destructive software on your computers).
  • P.R. resources and ad campaigns to help your company repair its reputation.
  • Crisis management.

Errors and Omissions Coverage for Business Organization, Home Organization, and Closet Organization Professionals

Errors & Omissions Insurance (also called E&O or Professional Liability Insurance) is business insurance for professional organizers. If your clients sue you over the quality, delivery, or execution of your work, this policy can pay for the lawsuit and related legal expenses.

E&O lawsuits include claims that your business…

  • Made mistakes or errors while completing a home organization project.
  • Failed to finish or deliver the work you agreed to.
  • Delivered poor or unsatisfactory goods and services.
  • Was professionally negligent.

Let's look at an example. A home organization business completes a massive job, reorganizing a basement and garage that could have starred on the "Hoarders" television show. The client, however, is unhappy with the work and claims your organizational schemes are wrong and have misplaced their property. If this happens, your Errors and Omissions Insurance can protect your professional liabilities and pay for the cost of the lawsuit the client brings.

Workers' Compensation Insurance for Small Home Organization Businesses

Most home or office organization businesses have to purchase Workers' Compensation Insurance (nicknamed Workers' Comp or Workman's Comp). Nearly all states require this policy and all states will hold businesses liable for workplace injuries and illnesses.

Workers' Compensation Insurance pays for…

  • Employee medical expenses.
  • Employer legal expenses during a Workman's Comp lawsuit.
  • Employee salaries while they are injured and unable to work.
  • Funeral costs and support income for dependents of an employee who has been killed on the job.

Workers' Comp injuries aren't just the injuries that are "caused" by your work. They also include injuries and accidents that happen at work, like slips and falls. Professional organizers do a lot of lifting, carrying, and bending. The physical aspects of your work can lead to many common Worker's Comp injuries.

An employee slips a disc in their back after carrying shelving down to a basement. If this happens, your business can be liable. Back injuries can lead to surgeries, MRIs, and even permanent disabilities. Worker's Comp can pay for your employees' medical expenses, paid time off, and your legal bills if you are sued.

Professional Organizers: Get Insurance Fast from insureon

Fill out our online insurance form, and our agents will usually be able to send you a quote in as little as 10 or 15 minutes. If you need small business insurance quickly to meet your state requirements or sign a contract, work with insureon's fast, professional agents.

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