As a business owner, you probably juggle numerous balls in the air every day. There are so many aspects of your business to consider. The responsibility can be overwhelming. One thing you don’t want to worry about is losing your entire company due to an accident or other unexpected event. That’s why it’s important that you have commercial insurance to protect your professional assets and investments. Keep reading to discover more about business insurance and whether you need it.
About Business Insurance
Business insurance policies provide coverage to protect you and your company against loss due to business-related activities. It is meant to be purchased by commercial entities, rather than by individuals. When you buy various business insurance policies, you are doing so as a representative of your company.
You may know about things like liability coverage and worker’s compensation insurance, but it’s likely you will need numerous policies to cover your interests. It can cover property damage, take care of contract disputes or protect your business in the event of a lawsuit. The types of coverage you need will vary based on your particular business.
For example, commercial roofing in Brooklyn may need higher amounts of coverage for the protection of their employees than an office-based business would. A trained insurance agent with a strong understanding of commercial needs can advise you on the types and limits of coverage you will need to purchase. Knowing your business is sufficiently protected will provide you with great peace of mind.
Purpose of Business Insurance
The overall purpose of business insurance is to protect you against the various types of risk you face throughout your business dealings. It can protect numerous assets, including financial, intellectual, and physical. Coverage takes care of damage occurring from such things as lawsuits, theft, employee injuries, property damage, vandalism, and general loss of income.
Having adequate commercial line coverage can allow you to stay in business, ensuring your customers continue to be served and your employees remain gainfully employed. Without proper insurance, you could lose everything. In fact, it’s possible you could face personal financial exposure in some cases. This could cause a devastating blow to your personal finances, property, and way of life.
Types of Business Insurance
There a numerous types of business insurance. Let’s look at a few of the most common. A popular option is a Business Owner’s Policy (BOP). This is a combined type of coverage that takes care of general liability, property, and income all in one simple policy. It’s a convenient way to save money on various policies. General liability protects you from customer claims in such cases as injury or false advertising.
Business property insurance protects property related to your business such as inventory, furnishings, equipment, and tools. Business income insurance can replace lost income should you need to temporarily close your business.
Professional liability coverage protects you if your business makes an error while providing services. This kind of insurance can be beneficial even if you’re only accused of a mistake, as it takes care of costs related to fighting the suit. Worker’s compensation is one of the most important types of insurance policies you can have for your business. This necessary coverage provides support to your employee while they recover from a work-related issue or injury. It can also protect your assets in the event that the employee sues.
Other types of insurance you may need include:
- Auto or fleet
- Umbrella
- Flood
- Employment practices liability
- Multinational
- Surety and fidelity bonds
As you can see, your business insurance covers quite a bit. You most certainly need some business-coverage, though which types of policies you should purchase will vary.
