Business insurance helps compensate people who are harmed by a company’s actions or products. It also protects a company from financial losses caused by natural disasters or other uncontrollable events.
Every business has unique needs, so it’s important to understand which types of business insurance are right for your company. Some policies may be required by law, while others are optional. Click on Insurance Agency Outsourcing Services for more info!
What is a business?
Business is an organized activity in which goods and services are exchanged for profit. Businesses can be for-profit or non-profit, and they can range in size from a solo operation to a multinational corporation. Some businesses focus on one product or service, while others sell a mix of products and services.
Whether you run a small retail shop or a large technology firm, your business is at risk from unexpected costs like natural disasters, legal claims and supply chain disruption. That’s why it’s important to have business insurance that protects you against these risks.
Business insurance can be a complex topic, but the good news is that there are many policy options available to meet your unique needs. In addition, it’s possible to bundle several policies into a single package called a Business Owner’s Policy (BOP) that can make it easier and less expensive to manage your business insurance. Ask your agent or broker about the types of coverages that are available to you.
What is the purpose of business insurance?
Business insurance, also known as commercial insurance, protects businesses from unforeseen losses that could financially ruin them. It helps cover costs like property damage, legal claims and lost income. It can also help pay for employee compensation if they are injured on the job. In addition, some policies offer extra protections like inventory coverage and business interruption insurance.
The type of business insurance you need depends on your specific needs and industry. However, nearly all businesses should consider general liability insurance, which protects against claims for third-party injuries or damage to property. Most businesses also need commercial auto insurance if they have employees or use vehicles for work, and many states require workers’ compensation coverage for employees.
It is common for small businesses to combine multiple policies into a single package called a Business Owner’s Policy (BOP). This simplifies the process of getting all the coverage you need and often reduces premiums by bundling multiple policies together.
What are the types of business insurance?
There are a wide range of business insurance policies. A licensed broker-agent can help you understand which policies are right for your specific business needs.
Property insurance protects physical assets such as equipment, inventory and buildings against damage or loss from fire or other perils. Often, this coverage includes the cost to replace those assets as well as associated legal expenses and settlement monies. If a property loss occurs, a business can also purchase time element coverage such as business interruption, extra expense and loss of rents/rental value to cover the loss of income while repairs are underway.
Commercial general liability insurance covers a company’s liability exposure from the negligent acts of its employees, products and operations in progress. This policy is often included in a BOP or offered as a separate policy. Similarly, workers compensation insurance protects a company’s liabilities resulting from employees’ on-the-job injuries.
How do I get business insurance?
The costs of running a business can be high. Protecting it from financial disaster can be one of the smartest investments a small business owner makes.
A licensed insurance broker-agent can evaluate the risks that your business faces and design a policy to meet your specific needs. They can also help you understand the terms and conditions of a particular policy, including deductibles and limits.
Depending on your type of business, you may need several types of commercial insurance. A typical package is called a business owners policy, or BOP. It combines property and liability coverage in a single policy. You may also need workers’ compensation, professional liability (also known as errors and omissions insurance), or cyber insurance.
Other common policies include commercial auto insurance to cover vehicles used for business, and non-owned and hired automobile coverage for when employees use personal cars or trucks for company business. Many states require businesses to carry workers’ compensation insurance.