Regardless of your business’s nature or size, one thing remains the same, and that’s the need for business or commercial insurance. When looking for new business insurance, or reviewing the current coverage, there are various aspects you will want to keep in mind. Since no business is created equal, each one will have varying insurance needs. For instance, a company that deals with physical products may require different coverage compared to a service provider. However, there are similarities in either scenario, and in this post, we are going to look at the various types of insurance you should get for your business.
1. General Liability Insurance
This type of coverage is designed to protect you and the company from an array of claims, including negligence, injures, or accidents. General liability insurance covers payment for things like medical expenses, property damage, slander, libel, faulty products, and legal costs. No one expects to be in legal problems, but it happens, and the last thing you want is to leave your business vulnerable to such situations.
2. Workers’ Compensation Insurance
This form of coverage is required in most regions. Workers’ comp provides coverage for medical costs and part of lost wages for a worker who falls ill or gets injured on the job. Typically, workers comp only cover illnesses or injuries that happen on the job site- for example, a slip and fall on a wet floor.
Since the laws encompassing worker’s compensation insurance can vary depending on the location of your business, it is imperative to work with an insurance agent to ensure you are getting the needed coverage, both by your business and the law.
3. Property Insurance
The term property can mean varying things to different companies. That is why it is imperative to ensure you have sufficient Commercial Property Insurance. Without it, many small businesses would not be able to replace their equipment if destruction or damage was sustained. Property covered by this form of coverage includes inventory, equipment, supplies, computers, and buildings.
There are two forms of Commercial Property Insurance- all risk and peril specific. The former covers almost everything and it’s a great way to avoid gaps and duplication of coverage. Peril-specific, on the other hand, only applies to specific perils named in the policy. Peril-specific insurance is often required when there’s a high risk in a certain area.
4. Professional Liability Insurance
Also referred to as Malpractice Insurance or Errors and Ommissions, professional liability insurance protects your company from lawsuits that allege negligence in professional services, making errors and omissions, or providing shoddy work. This type of coverage is especially important if you run a service-based business. However, it can also be necessary for other kinds of businesses. Mistakes are not uncommon, and so, professional liability insurance can come in handy, even if you think you don’t need it.
Running a business comes with all kinds of ups and downs. To succeed, you need to protect yourself from all sorts of mishaps. The above-mentioned types of commercial insurance are important, and every business owner should consider them.