Maximum Protection: The Different Types of Business Insurance You Need
According to the Federal Emergency Management Agency, 40% of businesses don’t reopen after a natural disaster. These numbers are only the tip of the iceberg since 25% of small businesses that reopen fail. The best way to protect your business is learning about the different types of business insurance.
Understanding the basics about these policies will help you narrow down which coverage you need to protect your business. Don’t know where to start?
We’ve got you covered. Here are 5 types of business insurance you should consider to protect your business today.
1. General Liability Insurance
When a person suffers an injury due to your business, your general liability coverage will protect your company. This type of insurance covers property damages and bodily injuries.
Carriers may not offer this coverage based on the risk of your business. However, you can self insure your business by obtaining captive insurance.
2. Commercial Auto Insurance
If you use commercial vehicles to offer your services, you should prioritize obtaining comprehensive commercial auto insurance. This coverage will protect all your company vehicles and employees during an accident.
Your insurance carrier will cover medical expenses and damages. Keep in mind this insurance applies to leased, owned, or rented commercial vehicles.
3. Property Insurance
When you own or lease a space, it’s vital to protect all your business assets. Property insurance will protect your inventory, equipment, and other business assets during a disaster.
Fires, storms, and thefts are some of the events covered by this insurance. You should keep in mind that natural disasters such as earthquakes aren’t typically covered by this type of insurance. Make sure to ask your insurance agent the types of events covered by your property insurance policy to ensure you buy the right coverage.
4. Business Interruption Insurance
When a natural disaster occurs, it’s common for businesses to close or interrupt their operations. During this time, your business will stop generating income.
However, you’ll still need to meet your financial obligations such as pay any business loans, utilities, rent, among other expenses. Business interruption insurance will offer a safety net by compensating your business for any income loss.
5. Workers’ Compensation Insurance
Most business owners believe only large companies need workers’ compensation insurance. Yet, any employee can suffer an injury at work. It doesn’t matter the type of business, any work injury can end up in a costly legal claim.
When this happens, most businesses aren’t ready to cover medical expenses, lawsuits, and other injury-related expenses. Workers’ compensation coverage will take care of these expenses. Depending on your coverage, your carrier may even provide disability and death benefits.
Should You Buy Different Types of Business Insurance?
You should obtain different types of business insurance to protect your company. Depending on the nature of your business, you may need more than one type of coverage. While learning about the basic types of business insurance is a start, you should consider consulting an insurance agent.
Your agent can explain these policies in detail and offer insight into the best coverage for your business. Remember depending on the size and type of business, you may need several types of business insurance and different policy limits.
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