A Guide to the Various Types of Business Insurance
Jun 18, 2019
Regardless of the nature or size of a business, one thing remains constant and that’s the need for business or commercial insurance.
There are various aspects of a business that need to be taken into consideration when searching for insurance for a new business or reviewing your current policies.
With every company being unique and different from the next, each will have varying insurance needs.
For instance, a firm that produces physical goods may require different insurance from that which offers services.
However, there are some similarities in both scenarios and this article will cover the various types of insurance every business needs.
This is a type of business insurance that’s meant to protect the company and the owner from a number of claims including injuries, accidents, or negligence claims.
General liability insurance can help pay for things such as faulty products, property damage, libel, slander, legal costs, and medical expenses.
Nobody expects to be sued, but it is always a possibility. The last thing a business owner wants it to be vulnerable if these situations happen to arise.
The definition of the term ‘property’ is broad and can mean an array of things depending on the business.
That is why it is imperative to ensure that your company gets sufficient commercial property insurance.
Without this kind of insurance, most small firms would not be able to replace their equipment should anything cause serious damage to these assets.
Property that’s covered by this kind of insurance includes buildings, inventory, computers, equipment, and supplies.
There are two different types of property insurance; all-risk and peril-specific policies.
The former covers just about everything and is an excellent way to avoid overlap or duplication of coverage.
It can also provide cover for any of the business’ liabilities.
Peril-specific policy, on the other hand, applies to just certain perils that are specified in the policy. It is ideal when there’s a high risk in a particular area.
Workers’ Compensation Insurance
This is a coverage that is mandated by federal law.
It provides coverage for medical costs and a part of lost wages for a worker who sustains an injury or falls ill on the job.
An example would be a slip and fall on a wet floor in the workplace.
Since the laws that govern workers’ compensation can differ depending on where a company is located, it is advisable for business owners to work with professionals in order to ascertain that they are getting the required coverage.
Professional Liability Insurance
Ideally referred to as Malpractice Insurance or Errors and Omissions Insurance, this kind of coverage protects the business owner from lawsuits.
These could be for claims against negligence in providing professional services, making mistakes or omissions and doing shoddy work.
This kind of coverage can be especially important for a service-based company but is also relevant for other kinds of businesses.
Mistakes do happen so sufficient professional liability insurance can be quite helpful.
Business Income Insurance
This is a policy that helps replace lost income if a business is unable to run due to a sustained loss.
This insurance helps replace lost income from things like a storm or fire damage.
This type of policy covers the costs related to a company’s data breach.
It can include costs to notify employees and customers a well as costs to run PR campaigns that help restore a firm’s reputation.
Commercial Umbrella Insurance
This policy extends the company’s liability coverage beyond the typical liability policy.
For instance, if a liability claim goes beyond the limits of a liability policy, the commercial umbrella coverage can help pay the remaining costs.
These are not the only types of business insurance out there. However, they are some of the most important for anyone who wishes to run a successful business.
For an obligation-free, competitive insurance quote, professional insurance advice or more information on how we can help you, please contact one of our expert consultants today on 1300 356 496 or send a message through our website.
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