Businessowners Policy (BOP)
For most small law firms, the most cost efficient way to obtain property and liability coverage is with a specialized Businessowners Policy (BOP). A BOP will cover your building and other property owned by your law firm. The policy also includes Business Income and Extra Expense Insurance (also called Business Interruption Insurance). Business Income Insurance helps pay ongoing expenses while your business is unable to function after a loss, such as a fire, and also helps make up for lost profits. Extra Expense Coverage can help you get back to practicing law quickly by paying extra expenses caused by the loss, such as rent for a temporary office. The BOP can also provide coverage for the costs of restoring electronic data caused by a computer virus. Unfortunately, you should also consider adding Employee Dishonesty Coverage to protect you against theft from your own employees.
Worker's Compensation Insurance
In North Carolina, employers are required to carry workers compensation insurance if they have three or more employees. However, even if your firm is not legally required to carry this coverage, you may want to purchase workers compensation insurance to provide compensation for yourself and your employees in the event of a workplace injury.
Workers compensation assures that employees get necessary medical treatment if injured while acting in the "course and scope" of employment. It also covers injuries sustained from workplace violence, terrorist attacks, and natural disasters. Certain illnesses and occupational diseases contracted from employment are also covered. If an employee is killed while working, death benefits are paid to the employee's dependents. The injured employee also receives a portion of lost income while unable to work.
Workers compensation insurance protects the employer from the possibility of a lawsuit related to a workplace injury. An employee who is not covered by workers compensation insurance could seek damages from a negligent employer if injured in the workplace.
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