The Main Types of Business Insurance

The Main Types of Business Insurance: A Detailed Guide

Every year, more than 627,000 new businesses open in hundreds of different industries. Though they all provide different services, they all need to protect their operation from unexpected losses and expenses.

The best way to do that is by buying the right types of business insurance. And there are dozens of different types of coverage to choose from.

If you’re not sure where to start or what policies are best for your company, it’s easy to feel overwhelmed. Here are a few business insurance policies that almost every business needs.

General Liability Insurance

As a business owner, you’re responsible for everything that happens on your company’s property. This means if a client or customer gets injured or their property gets damaged while they’re on-site, you could be liable for the damages.

General liability insurance helps cover those costs. Even better, the plans can help cover legal fees if the injured party sues your business.

All you have to do is file a claim with your insurance agent. Your policy will give you protection up to the coverage limit as long as you pay the deductible. This will help reduce your out-of-pocket costs if anyone gets hurt and can make staying in business easier.

Property Insurance

No matter what type of business you run, you’ll have property that you need to protect. This could be products you’re selling, the physical building you use for your company, and even the computers you rely on each day.

Property insurance will help protect those items. If your building gets vandalized, broken into, or otherwise damaged, your insurance will help cover the cost of the repairs.

Your policy may even cover the full cost of replacement equipment depending on the size of your policy. The best thing you can do is discuss your needs with your insurance agent. They’ll be able to help you decide how much coverage you truly need to help you stay covered through any commercial insurance claims you file.

Workers’ Compensation Coverage

If you have employees, you’re required to do everything you can to keep them safe at work. Unfortunately, accidents can and will happen.

If your employees get injured on the job, you must be able to offer them workers’ compensation coverage to help pay for their medical treatments. Investing in workers’ compensation insurance is the best way to provide your team with the protection they need.

Should an employee get injured on the job, all you’ll have to do is initiate a workers’ compensation claim with your insurance provider. The insurance will take care of their medical expenses and can even provide them with a portion of their regular income while they recover.

Commercial Auto Insurance

If you plan on using a vehicle for work-related reasons, your personal auto insurance coverage won’t be enough to protect you on the road. Worse, your insurance agency may revoke coverage if they find out that you’re using your personal car for work.

You’ll need to invest in commercial auto insurance for every car you plan on using. This way, you won’t have to worry about violating the terms of your personal insurance coverage.

The coverage won’t just protect you as the vehicle owner. It will also protect any authorized driver using the vehicle for work.

Business Interruption Insurance

No matter how much you plan for disasters and prepare for unexpected problems, you can’t prevent them from happening. If your business has to shut down for any length of time, either due to damage to your building or the surrounding area, how would you keep up with expenses?

You and your team won’t be able to work and keep the business running when the doors aren’t open.

Business interruption insurance can help. The coverage provides funds to help you pay your employees and stay on top of routine expenses and payments until you’re able to open back up.

Umbrella Insurance

Sometimes, your general liability insurance policy won’t be large enough to cover your expenses during a lawsuit. That’s where umbrella insurance can help. This type of business insurance supplements your general liability policy.

If the cost of a settlement or legal expenses are higher than your coverage limits on your general liability policy, umbrella coverage will pick up the difference.

Keep in mind that some businesses may not need this coverage. It’s best for companies that worry about liability claims or those that work in potentially hazardous industries.

Professional Liability Insurance

Professional liability coverage is a type of small business insurance that protects companies that provide products or services to customers. If your customers get injured as a result of your products services, the policy will help pay for the damages.

The best way to decide if you need professional liability business insurance is to speak with your insurance agent. They’ll assess your company’s unique risk factors to help identify the potential liability risks you face.

Disability Insurance

Disability insurance policies help protect your employees if they’re injured and unable to work for an extended period of time. It’s similar to workers’ compensation, but the coverage extends to all types of injuries, not just those that happen on the job.

The policy is available in both long-term and short-term options. But most businesses only offer short-term coverage. This gives employees a portion of their paycheck for a set number of months while they recover.

Invest in These Types of Business Insurance

Investing in the right types of business insurance is the best way to protect your company and your employees. Keep in mind that every company’s insurance needs will be different.

Speak to your insurance agent and discuss your concerns. They’ll be able to tell you what types of coverage will help your business most.

Not sure what to look for in an insurance agency or the policies themselves? Check out our latest posts for tips on finding an insurance provider you can trust.

Share your love
Christophe Rude

Christophe Rude

Articles: 15888

Leave a Reply

Your email address will not be published. Required fields are marked *