You’ve spent time building the framework and operations behind
your business. Now it’s time to explore the different aspects
of business insurance coverage and gain a deeper understanding of how it protects
your assets and investments.
Business Insurance You Will Need
Business insurance ensures that your business is covered in case a disaster strikes. Businesses should purchase the following four types of insurance:
- Property insurance: compensates you if the building you use to conduct your business is lost or damaged by common perils such as fire or theft. Not only does property insurance cover the building or structure but it also insures personal property within your business.
- Liability insurance: protects you in the event that someone claims that your business caused them harm. This type of insurance pays damages to third parties resulting from bodily injury or property damage for which your business is legally liable, up to the policy limits, as well as legal fees. Liability insurance also covers the medical bills of any people injured by your business.
- Business vehicle insurance: provides coverage for autos owned by a business. Your insurance company may pay to repair or replace your vehicle because of damage resulting from accidents, theft, flooding and other events depending on the coverage you buy.
- Workers compensation insurance: pays for medical care and replaces a portion of lost wages for an employee who is injured in the course of employment, regardless of who was at fault for the injury.
Other Types of Policies You May Need
There are various other policies needed by some businesses in addition to the basic coverages highlighted above, including the following:
- Business catastrophe liability or umbrella policies: For the typical business, the umbrella policy would provide protection over and above general liability and auto liability policies. It is designed to protect against unusually high losses.
- Specialized liability insurance policies: are designed to meet specific needs of individual businesses specialized for liability policies needed by some businesses. They include Errors and Omissions Insurance (E&O)/Professional Liability Insurance, Employment Practices Liability Insurance (EPLI) and Directors and Officers Liability Insurance (D&O).
- Terrorism insurance: insures losses attributed to terrorist acts under these commercial policies and are insured by private insurers and reinsured by the federal government.
Learn how business insurance coverage works for you, the different types of business insurance coverage and protection available, as well as business insurance terms, so you can choose the right type and policy for your company.
Whether you're just starting your business or have operated your business a long time, it's smart to stay informed. As an informed consumer, you'll have the confidence and knowledge to know if you're getting the best deal - on the right business insurance coverage to meet your needs.
Learn more about business insurance from NetQuote – get your free business
insurance quotes today.
