Smart insurance decisions are important for everyone. But, these decisions are even more important when you own a business. Without the correct insurance coverage, many things can seriously undermine and ultimately destroy what you worked so hard to build. Since there are many possible outcomes to any situation, there are different types of business insurance to choose from and can be customized to meet your needs!
7 Types of Insurance
Commercial General Liability: This type of policy covers many important aspects of your business. Generally, this can protect you from a variety of claims, including bodily injury, property damage, personal injury and others that can arise from your business operations.
Commercial Property: In this policy, protection is given against incidents resulting in a loss of property to your business. In other words, this helps protect the building your business owns or leases as well as your business personal property (tools, equipment, inventory, furniture, etc.). Businesses can tailor their coverage to include additional protection like valuable papers and records coverage that can help pay to reproduce important documents, provide temporary storage and move records to avoid a loss.
Professional Liability: This is commonly known as errors and omissions (E&O insurance). This special type of coverage protects your company against claims regarding a professional service you provided if it caused your client to suffer financial harm. This could be due to errors on your part or because you failed to perform some services (omissions). Common claims that professional liability covers are negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice.
Workers Compensation: Once you hire employees, it’s best to add a workers compensation policy to your existing business insurance policy. This will cover any medical treatment, disability, and death benefits in the event an employee is injured or dies as a result of his work with your business.
Home-based Businesses: It’s very common for many business owners to have started their small businesses in their own homes. Unfortunately, homeowner’s policies don’t cover home-based businesses in the way commercial property insurance does. If you’re operating your business out of your home, it’s wise to cover your equipment and inventory in the event of a problem.
Vehicle Insurance: Vehicles that are performing tasks for your company should be fully insured to protect your business against liability if an accident should occur.
Umbrella Insurance: To further protect your company’s future, consider adding an umbrella insurance policy. An umbrella policy is just like it sounds; a protective insurance layer that sits on top of your other liability policies to provide your company with additional resources to cover losses if your other policies do not cover the full amount of a claim.
Any type of business can avoid a major financial loss due to a lawsuit or catastrophic event with the right policies in place. Check with us to find out what forms of insurance are advised for your type of business!