Even if you are a new entrepreneur, you have probably heard about business insurance and its importance. Without experience in these policies, choosing the proper coverage may be challenging. When you start to explore the coverage options available, you should understand what each one provides to make the right choices.
Exploring the Types of Business Insurance
Most businesses benefit from a combination of policies that address the company’s fundamental needs and risk exposures.
Commercial Property Insurance
Commercial properties include buildings, furniture & fixtures, inventory and certain equipment. Most commercial property policies cover these items, as well as other company assets.
Business Liability Insurance
General Liability coverage is a crucial investment. Every business faces the risk of someone slipping and falling on the property and suffering an injury. This coverage pays legal fees and settlement amounts for these claims. Libel and slander cases apply as well.
Workers’ Compensation
Each state has its own guidelines or requirements for Workers’ Compensation coverage. All employers who have employees should carry this valuable coverage to protect themselves if an employee suffers an injury on the job. Workers’ compensation provides coverage for lost wages and medical expenses, saving your company the potential for costly settlements.
Commercial Auto Policies
An at-fault accident while operating a company-owned vehicle can expose the business to huge financial settlements. A Business Auto Policy can protect against that, as well as cover the vehicles themselves against loss or damage. Business Auto policy premiums vary widely and may depend on the employees who will drive the vehicles, the type of vehicles your business owns, and the claim history for your company.
Professional Liability Coverage
Companies at risk of errors or omissions need Professional Liability coverage. Service and professional businesses that risk a client claiming negligence or professional mistakes need this business insurance coverage to protect the company’s assets against these claims.
Product Liability Insurance
Just like certain businesses need Professional Liability policies, businesses that manufacture, distribute or sell products need Product Liability insurance. These policies protect against liability claims for accidents and injuries due to oversights in product design, development, or production.
Cyber Liability Coverage
Cyber threats, including data breaches and ransomware, are more common than ever as hackers exploit company vulnerabilities. These threats can prove costly as businesses pay for credit monitoring and damages for effect on customer credit reports. These policies cover necessary expenses for data breach recovery and restitution to any affected customers.
Business Owners Policies
If you want to simplify your business insurance purchase, consider starting with a Business Owner’s policy package. These packages include a variety of coverages, such as General Liability, Commercial Property or Equipment coverage, and Business Interruption insurance.
Understanding How to Find the Best Insurance Plan for Your Company
Explore each policy option and your company’s vulnerabilities to build an effective coverage package. You may even qualify for policy discounts when you choose multiple policies through the same carrier.
Considering How Your Industry Affects Your Business Insurance Needs
You may need to pay more attention to the importance of certain industry policy types. For example, many businesses need Product Liability insurance, while for others, Business Interruption coverage may be the most important. Others may not be able to operate without meeting client requirements of high liability limits that an Umbrella policy can provide, or Workers’ Compensation on their employees. For some, coverage on property and a fleet of vehicles is necessary for protecting company assets. The more you learn about business insurance, the better protected your business is.
About Securance
From our home base in Texas, Securance serves the insurance needs of clients throughout the country and abroad. With 50-plus years as a trusted advisor to businesses, families, and individuals, we help clients safeguard their hard work and step confidently into the future knowing they are well protected.Contact us today at (713) 977-6606.
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