Types of Business Insurance

Types of Business Insurance

Why Are There So Many Types of Insurance for Businesses?

Types of Business Insurance The reason there are so many types of business insurance is because there are so many different types of businesses. Even though there are primary coverages that most businesses need, each business also has its own unique set of risks that may require specific insurance solutions. No two businesses are the same. Even businesses in the same industry may need different coverages.

For example, a small shoe store in a metropolitan area might be more likely to be burglarized or vandalized than a shoe store in a rural area. The metropolitan shoe store may need an enhanced level of business property insurance that the rural store does not need. Insurance companies typically offer a broad range of coverages to help protect not only the common risks most businesses face, but also the diverse and unique risks specific to individual businesses.

Deciding between the myriad coverages available can be overwhelming and confusing. But you can make shopping for business insurance easier by asking yourself, “What type of business insurance does my business need?” A good place to start your analysis is by learning what business insurance will and will not cover.

Typically, business insurance can help protect your business assets from losses due to business property damage, lost business income and employee illness and injury. It can also help protect against the costs of liability claims made against your business.

Business insurance will typically does not cover the costs of liability claims if your business intentionally causes damage.

How Many Types of Business Insurance Are There?

There are many different types of business insurance. But most businesses need the basics, like General Liability and Commercial Property Insurance. Small businesses can get both, plus Business Income Insurance, in a Business Owner’s Policy (BOP). Many businesses also need Commercial Auto and if they have employees, Workers’ Compensation Insurance. For any unique risks that are specific to the business, additional coverages are available.

With careful assessment and coverage selection, you can customize a comprehensive solution for your business by combining several primary insurance coverages with additional more specific coverages.

Primary Insurance Coverages
General Liability Insurance helps protect your business from liability claims made by people against of your business. This can include customer slip and fall accidents and damage to someone else’s property that your business causes.

Commercial Property Insurance helps cover your business equipment, furniture and other covered property from the costs of property damage. It also helps to restore the property you use in your business to its original condition before a covered loss or damage. Your property could include things like equipment, furniture or inventory.

Professional Liability Insurance helps protect your business from claims that there where errors made while providing your professional services..

Workers’ Compensation Insurance provides benefits to employees who become injured or ill on the job. In the unfortunate event that an employee dies due to a work-related injury or illness, this coverage can also provide benefits to the employee’s family. This coverage is required in most states for businesses that have employees.

Business Income Insurance can help replace lost income if your business is unable to operate because of a covered loss of or damage to your business property.

Business Owner’s Policy (BOP). Most businesses will need General Liability, Business Property and Business Income Insurance. A BOP conveniently bundles these coverages in a single policy for small business owners.

Additional Insurance Coverages
Data Breach Insurance helps cover the costs associated with a business related data breach. This can include costs to notify customers and employees, run PR campaigns to help restore your business’s reputation.

Commercial Umbrella Insurance extends your business’s liability coverage beyond your standard liability policy. If a liability claim made against your business exceeds the limits of your primary liability policy, Commercial Umbrella Insurance can help pay the remaining costs of the claim.

What Kind of Business Insurance Do I Need?

You probably need the basics like General Liability, Commercial Property, Commercial Auto and if you have employees, Workers’ Comp. You’ll need to determine your unique business risks in order to figure out what additional business insurance coverages you might need. One of the best ways to assess your unique risks is to talk to a professional. A good business consultant or insurance agent can analyze your situation and help you customize an insurance solution with the right coverages to meet the risk protection and budgetary requirements of your business. Remember, over time your business and industry may change. It’s important to periodically review your insurance coverage and make appropriate adjustments to ensure you have the protection you need.

Source : www.thehartford.com