The Various Types of Business Insurance You Need To Know About
Launching a business carries a certain amount of risk. Unforeseen risks or circumstances can arise at any given moment and that’s why it is important to get coverage. Neglecting insurance might seem like a great way of saving money, or dismiss it as paranoia, but it is actually a surefire way to protect you and your company against unforeseen damages as well as lending you some peace of mind.
It is advisable to get all the necessary coverage from a single insurance provider. When starting out, you should conduct a risk-management audit so that you can identify all the potential liabilities as well as accident costs.
Well, there is a huge array of business insurance types to protect your company against unforeseen circumstances and risks and before you can purchase any form of coverage, it is advisable to know about them. In this read, we are going to cover the most common types of commercial insurance.
Workers Compensation Insurance
This is one of the most important types of coverages and it’s actually required by law for every company with over 10 employees to have it. It comes under the business insurance policy and covers disability, medical treatment as well as death benefits if a worker experiences an accident or loses their life while in the line of duty. Even a slip and fall or a condition such as a carpal tunnel could lead to costly claims. These can, however, be easily met if you have workers compensation insurance.
This is another important type of coverage when it comes to running a business. Whether you own or rent your business premises, you should ensure that you have it. It covers damage to your equipment, furniture and inventory from theft, fire or storm. However, it does not cover earthquakes and floods. The latter fall under a different policy which is recommended if your company is located in a region prone to such dangers.
Business Interruption Coverage
In case regular business work is interrupted due to an accident or some catastrophe, it’s important to have the losses covered. This coverage is for companies that operate from a fixed location such as a store. Lost income as a result of unforeseen occurrences is compensated by the type of coverage.
Product Liability Insurance
If your company manufactures products, you need to ascertain that you have this type of coverage and have it tailor-made for your specific products. That’s because it is possible to face a lawsuit for the damages caused by your products, even if you have taken the right measures to ascertain its safety. Product liability covers claims and costs that are incurred by faulty products.
Professional Liability Insurance
Failure to perform duty or even irreversible errors can result in negligence claims. As such, it is important to cover this kind of claim under this type of coverage. Professional liability insurance is also similar to errors and omission insurance or E&O. Since every industry is different in regards to the nature of work, there’s a need for customized policies.
Since homeowner’s insurance policies do not cover businesses like commercial property coverage, it’s imperative to get additional insurance. This covers inventory and equipment if you run your business from home. This is particularly important for those who are starting out small from their residences.
General Liability Insurance
Every company is advised to have this type of coverage as it covers damages in case a product, service or employee causes harm or injury to a third party.
Commercial Auto Insurance
If your company has vehicles, it is important to have them insured under this policy as it can lead to a liability claim in case of an accident. You should insure against third-party damage and injury, but this policy covers damages to the company cars as well. It ideally covers cars used by delivery people carrying goods and providing services for a fee.
Nowadays, most companies keep sensitive information in paper files, computers and servers pertaining to clients and employees. The loss of this kind of data or data breach could lead to a lawsuit that could see the business crumble. Data breach insurance protects against these damages as well as the costs incurred due to the data loss.
This coverage is for those that rent their property for private or commercial use. The policy protects against damage to the property, the contents inside and even personal injury within the premises.
Directors & Officers Insurance
The officers and directors of an organization can find themselves in a lawsuit if their decisions and actions have affected the profitability of the company. If they are caught in such a situation, the damages and losses are covered by Directors & Officers insurance.
Other common types of corporate insurances include:
- Professional Indemnity
- Fidelity Guarantee
- Trade Credit Insurance
- Marine Cargo Insurance
- Consequential Loss
Keyman insurance can ideally be included in commercial insurance for employees. It covers the sudden illness or death of a key individual in the company. There’s also employee medical insurance which covers the medical charges of an employee. Another type of coverage is golden handcuff gratuity which is simply a reward for directors or employees for loyalty and long service to the company.
It’s important to protect your position, employees and the entire business against unforeseen events. These things have the potential to hamper business operation and you may find yourself struggling to cover the losses and damages if you don’t have insurance. That’s why it’s imperative to discuss with an insurance provider such as www.procominsurancecompany.com and have your company covered with these policies.
It is ideally important that you do your homework when it comes to choosing your insurance provider. There are numerous companies offering commercial insurance, but they have varying terms and rates. You should take the time to compare the various rates online and look at the history of the company when it comes to resolving claims. You want your business protected and so, you will want the best insurer behind the wheel.