Business insurance can help a business protect its financial assets, intellectual and physical property from a covered loss stemming from lawsuits, property damage, theft, vandalism, loss of income and employee injuries and illnesses. Standard coverages include Commercial Liability, Commercial Property, Commercial Auto and Workers’ Compensation. There are also many other business insurance coverages available to address varying risks different businesses might face.
Types of Business Insurance Policies
There are many coverage options available for businesses. Because your business is unique, the coverages your business needs will also vary. Some factors include the industry you’re in, its size, location, and number of employees. As your business grows, it’s likely your insurance needs will change. At a minimum, most businesses have liability, property and Workers’ Compensation coverage for employees.
Liability policies help protect your business from the costs related to claims of bodily injury and property damage. If a lawsuit is filed against your business, you will probably have large legal fees, even if you’re not in the wrong. Without liability insurance, you may have to pay the legal fees, settlement or judgment out-of-pocket. Most businesses opt for some form of liability insurance, with the most common liability policies being general liability, professional liability and commercial umbrella insurance.
Employee Insurance Policies
In most states, having workers’ compensation is mandatory. Workers' Compensation provides benefits to employees for work-related injuries and illnesses. It can also help cover the legal costs your business may incur if a deceased workers’ family decides to sue you. Factors such as job risk, your business’s claims history and the size of your payroll factor into determining the cost of workers compensation insurance.
Without adequate insurance, it could be difficult for a business to recover from significant property damage. Commercial property insurance helps businesses pay to repair or replace damaged property resulting from a fire, storm or other covered event. According to the Insurance Information Institute (I.I.I.), 40% of small businesses never reopen after a natural disaster. Without the right business property insurance, you might have to pay for these damages out-of-pocket. Commercial business property insurance policies can help cover:
Damage to the physical location of your business.
Damaged tools, assets and documents.
Damage caused by vandals.
There are even options you can add to your policy to help cover lost income. This can help you keep paying your fixed costs if your business cannot operate because of property damage. Popular property policies include commercial property, and commercial flood.
For businesses that need help reducing risk exposures and increasing the safety of their operations, insurance companies with Risk Engineering expertise offer loss control services. Services can include performing workplace safety evaluations, designing mitigation plans, consulting, and providing a variety of safety training programs for your employees.
Combine Different Business Insurance Coverages Under One Policy
It is possible to combine different business insurance coverages from the same insurance carrier under one policy. The most popular option is a Business Owner’s Policy (BOP). BOP’s combines general liability, property insurance and business income in one policy, making your insurance easier to manage.
Business insurance helps protect the business you worked so hard to build, get a quote today.