Austin Business Liability Insurance

Austin business liability insurance can keep a company owner from being personally liable, and help the company deal with third-party claims. If a small company faces a third-party claim, the owner will most likely be saddled with the burden high attorney fees and possible damages. However, a good Austin business liability insurance company will take care of the legal costs and settlement fee.

Some Austin, TX businesses may need an additional policy to cover employees, directors and officers. D & O liability insurance (for directors and officers) is separate from a general commercial liability policy, and so is EPLI or Employment Practices Liability Insurance. Austin companies that have employees will most likely want to consider some of these additional policies to protect them.

Regardless of the policies that cover any small business, it's essential to choose a high-quality Austin business liability insurance company. To choose a good insurance company, it's a good idea to pay attention to the company's portfolio, rates and financial stability. It's also important to make sure that the Austin business liability insurance company offers high-quality customer service, responsive client service and payment flexibility.

Directors and Officers Liability

The directors and officers of a private Austin company can be held liable for their work and any decisions they make. If the directors or officers do not have D & O coverage, they are risking their own personal assets (and their spouse' s assets). An Austin company may need to insure the company's Board of Directors, for example. Also, D & O can help attract high-profile board members to a company.

Public companies in Texas need to have D & O due to their large shareholder base, but most lawsuits don't come from shareholders. Rather, lawsuits come from competitors, government bodies, employees and creditors. Therefore, D & O is necessary for private Austin companies as well as public. Noteably, the majority of D & O related claims come from employees.

If the company cannot indemnify its officers, employees or directors, then it may become the responsibility of an individual. Sometimes, possible to combine D &O coverage with EPLI. In fact, some Austin business liability insurance companies no longer offer D & O. EPLI covers certain employment related claims made by employees, which are the most common litigation problems for D &O.

For example if a manager harasses an employee (or is accused of doing so), EPLI will provide a defense on behalf of the Austin, TX business. EPLI generally covers discrimination, harassment, wrongful termination, and emotional distress claims. The policy may also cover privacy-based claims and reputation or defamation claims.

It's good idea for a small business to talk to an Austin business liability insurance agent about whether EPLI and D & O are necessary policies. Texas business insurance is expensive, so it's not a good idea to be over-insured. However, general commercial policies don't cover individuals, and it's important to have possible workplace related claims covered.

Tips: Choosing an Insurance Company

The best Austin business liability insurance companies offer a wide range of different policies and products for different needs. It's best for a small business to go with a company that offers an array of good options, because then it's easier to find a policy package that's appropriate. Also, many insurers can customize a plan, which may be helpful. The company that's seeking coverage will need to assess their needs and choose an insurer accordingly.

It's important to choose a company that has a history of financial stability, and has been providing liability coverage for quite some time. Checking out the Austin business liability insurance company ratings is one way to check credibility, and asking an agent for help is a good idea, too. Also, businesses should obviously shop around (or have an agent help) to make sure that the rates of the Texas company are competitive with other insurers offering similar packages.

Some Texas business liability insurance companies offer great customer service, whereas others are difficult to contact. Customer service is extremely important and so is personal support. Choosing an insurer that understands a particular industry can be very helpful, for example. Also, the best insurers offer lots of advice on risk management strategies to help lower premiums. Great insurers also have quick claims responses, offering services 24 hours a day, seven days a week, all year long.

Other companies may, unfortunately, respond to claims very slowly, and take time to get damage assessed. Worse yet, other insurers may put off hiring an attorney for the insured, so as to save money. It's important to choose an insurer that will respond promptly to any claims. Austin business liability insurance agents can help small businesses find the most reliable insurers, and also figure out which one will best suit the company's particular needs.

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