What exactly is business insurance, and why do you need it? Business insurance offers a wide array of coverage options designed to shield businesses from potential financial loss due to unexpected circumstances. Every commercial activity has its own individual set of unique risks, so a business insurance policy has to be specifically tailored to the individual company. Factors that need to be considered include the value of the company’s assets, its operations, its relationships with customers, and its relationship with suppliers.
If a large loss is sustained by your company, you may be able to file a claim for compensation under a commercial property insurance policy. There are many forms of coverage available, including liability insurance, property damage insurance, and workers’ compensation coverage. The two main types of coverage are collision and liability; however, there are some instances where additional coverage may be beneficial.
Collision coverage provides protection for injuries or damages to property suffered while operating your company’s vehicles. This type of insurance typically covers property damage that is allowed by the terms of the policy. In order to determine whether your company will be covered by a collision insurance policy, you will have to assess the risk of your company’s activities, as well as the cost of your current vehicle fleet.
Liability insurance, on the other hand, protects you if someone is injured in an accident with your company’s vehicles. This type of coverage will also reimburse you for the cost of medical expenses and any legal fees. If a third-party becomes injured in an accident with your company’s vehicle, liability coverage will provide compensation for these third-party losses.
It is not uncommon for workers’ compensation to become a very important part of an overall business insurance package. A legitimate insurance provider will cover workers’ compensation benefits, although workers compensation benefits are not always included in the typical package. Similarly, liability coverage will typically not be automatically included in an annual business insurance policy, but it is a very good idea to include this coverage with all insurance packages.
Different insurance companies offer different levels of coverage for their business owners. Business owners who own more than one location should consider purchasing multiple policy packages from the same insurance company. The different policies will cover business-related liabilities, work-related accidents and professional liability. By combining different policies, a business owner can avoid double coverage and save money.
There are several types of business policies available. Many insurers focus on specific types of risk such as losses relating to product liabilities, property damage and litigation. An example of a risk might be that your company manufactures shampoos that cause hair loss. You may want to consider liability coverage that covers for these claims. Shop around and compare policies before committing to a policy so that you can get the most protection for your specific needs.
One type of insurance that many businesses buy is liability coverage. This will help protect you if you have employees that are hurt on the job. However, this type of coverage will not pay you for damages incurred by people who are not your employees. Some examples of people who are not your employees would be vendors, strangers or tenants. If your business produces products or services that are subject to the liability laws of your state, you may want to consider purchasing workers’ compensation insurance.
In the event that your company becomes involved in a lawsuit, you will need to have adequate insurance to cover the legal costs. If you do not purchase workers’ compensation coverage, you could be responsible for these costs out of pocket. Your insurance company will likely ask you to purchase liability insurance. If the cost of this type of insurance is more than you can afford, you should shop around for a lower premium type of insurance. Some insurance companies will offer you a discount if you purchase multiple policies from them. What is important is that you know what you are buying because not all policies will cover the same risks.
danstheman
Dan Lewis is a business and finance consultant who stared is career with Capital One and worked as a business and finance analyst for over 25 before leaving the corporate world to create this blog.