Operating a business can be very rewarding, but for many owners, the constant fear of what could go wrong distracts them from focusing on growth. Businesses can reduce risk by purchasing the right insurance policies designed to cover the problems they may face, whether it is natural disasters, car accidents or injured workers.
Outlined below are the top types of insurance businesses should consider.
General Liability Insurance
General liability is one of the most popular types of business insurance due to the broad protection it provides. It covers against risks such as lawsuits that are filed by individuals outside of the company alleging that the business caused property damage, bodily injury or reputational harm.
If this type of lawsuit arises, this policy may cover the legal defense for your business, as well as any settlement costs incurred. It also offers coverage for the medical bills of those injured on the property of the business.
Commercial Property Insurance
Commercial property insurance provides coverage for unforeseen losses or damages to physical property, such as inventory or an office building, due to incidents including theft, lightning or fire.
It is important to keep in mind that some causes may be excluded, such as water or flood damage, but these concerns can often be addressed by endorsements extending coverage.
Professional Liability Insurance
Businesses that offer services rather than products can benefit from professional liability insurance. This type of policy offers protection in cases where patients or customers file a lawsuit for real or perceived damages that they claim arose from mistakes made by your business. It offers protection against lawsuits filed by dissatisfied clients and may cover your legal representation and settlement costs.
Workers Compensation Insurance
This type of policy offers protection from claims and lawsuits stemming from injuries that employees experience while they are working or due to the nature of the work they perform. Most states require all businesses to obtain this type of coverage for all of their employees, but the specific requirements vary by state.
It can cover costs such as medical expenses for injured employees and the income they were supposed to earn during the time they are unable to work as they recover.
Business Income Insurance
Many business owners worry about how they would cover their expenses if they were required to close for a reason beyond their control. Business income insurance, which is sometimes known as business interruption insurance, offers financial protection should a covered situation or disaster prevent the business from conducting its normal operations.
For example, it could prove to be beneficial in the weeks following a natural disaster. This type of policy can offer reimbursement for lost business income and help business owners to pay their payroll, rent and taxes during the time they are unable to operate. Some business owners also purchase extra expense coverage, which could cover the expenses of renting temporary spaces or bringing in temporary staff in the aftermath of a disaster.
Commercial Automobile Insurance
Commercial automobile insurance functions in a similar manner to personal auto insurance but applies to company vehicles as well as the personal vehicles of those who work for the company while in use for business purposes.
Should your company be found to be at fault in an accident, this type of policy would cover the medical expenses of any injured drivers and passengers, as well as repairs to the vehicles involved. It can also cover vehicle damage that arises due to fire, flooding, vandalism or theft.
Directors and Officers Insurance
For businesses that have a board of directors, directors and officers’ insurance can protect its members and their executive leadership should they be named in lawsuits that are filed against the company. It offers reimbursement for directors and officers for any legal settlement costs that arise from this type of lawsuit.
Cybersecurity Liability Insurance
One type of insurance that is becoming increasingly popular in the digital era is cybersecurity liability insurance. This type of policy can protect a company should its digital data become compromised. For example, it can prove helpful in the event of a hacking or a data leak.
It normally covers operational expenses and the expenses that are incurred by clients whose online security has been compromised. It may cover costs such as recovering data, improving digital security and restoring a company’s public reputation.
Commercial Umbrella Insurance
For businesses that are concerned about events that could cause damages that go beyond their liability limits, business umbrella insurance is a type of policy that will begin providing after the existing liability coverage for a specific incident has reached its maximum. It is recommended for larger businesses that may be sued for a significant amount of money.
Schedule a Consultation with the Commercial Insurance Professionals at Business Benefits Group (BBG)
The business insurance division of Business Benefits Group can help ensure your company has the right coverage to address the specific situations you may encounter in the course of doing business. Contact Business Benefits Group today to discuss the needs of your business today.