As an organization, your company faces multiple risks every day. The purpose of business insurance is to protect your small business from these risks. Business insurance helps protect your company's financial assets, physical and intellectual property from theft, property damage, lawsuits, vandalism, loss of income, employee injuries, and illness.
Business insurance also includes a business owner's policy (BOP) that is specially designed to protect the owner against business interruption, property damage, peril, and liability. Therefore, business insurance successfully protects not only the business but also the owner.
The different types of business insurance to help protect your business are
Commercial liability
Commercial property
Business owner's policy
Commercial auto insurance
Worker’s compensation
Types of business insurance policies
If you are wondering what business insurance covers, we are here to help you. However, there is not just one answer as there are multiple business insurance policies for different needs.
To understand what kind of business insurance you need, understand what coverage suits you the best. You can determine this based on your business.
Size
Industry
Number of employees
Location
The fundamental you need is liability and property coverage insurance. If you have employees, you will also be needing worker’s compensation insurance. You should keep a check on your business insurance regularly because as your company grows, the insurance needs to be altered accordingly.
Liability policies
Liability policy can help you protect against property damage, bodily injury, errors, and omissions, and advertising injury. Without this protection, you are bound to pay the legal costs from your pockets such as attorney fees and settlement amounts. The basic liability policies include
General liability insurance
Professional liability insurance
Commercial umbrella insurance
Directors and officers insurance
Insurance policies for employees
You must purchase worker’s compensation if you have employees in your organization. This policy helps your employees recover from work-related illness or injury. It can also benefit the employee’s family members if the employee loses his/her life in a workplace accident. Multiple factors can affect your policy cost like job risk, claims history, and payroll size.
Property policies
Usually, small businesses tend to shut down when hit by a pandemic or a natural disaster. Without a property policy, it might become difficult for a business to recover from the losses of severe property damage. You will be responsible for paying for the damaged property which can be expensive. Commercial property insurance will help repair or replace property damage pertaining to fires, storms, theft, and other covered events.
Risk management
Some insurance providers also help companies with risk management. This helps businesses operate safely and efficiently.
Commercial auto insurance
Also known as commercial vehicle insurance, it covers only vehicles that are owned by the business. It does not cover personal vehicles that are not used for business purposes. This policy becomes important if your core business is logistics and supply chain management. Your business might have multiple types of vehicles like trucks, vans, cars, etc. Commercial auto insurance protects all types of business vehicles.
Conclusion
Business insurance helps protect your company that is hard to build. However, you have to work with an insurance provider that understands your needs and provides you with tailor-made policies as per your requirement.
Comments
Post a Comment