Business insurance is a necessary and vital way to help you protect your business from various threats and risks that can have an adverse affect on it. Basic business insurance should protect your business property and assets as well as provide liability coverage to protect you from lawsuits. You might also need coverage to help protect you and your employees from work-related injuries and illnesses.
Most small business owners need a comprehensive property and liability insurance portfolio, as well as certain specialty policies that protect against the unique risks that they face.
Protect Your Business Property
Commercial property coverage protects you when your business property is damaged by someone else or by some type of unforeseen event. You need business property coverage if you own your building or have tangible business property. It protects things like office equipment, computers, inventory and tools from perils such as fire, vandalism, theft, smoke and more. Commercial property insurance policies usually also include business interruption coverage, which protects your earnings if your business is unable to operate because of damage caused by some type of covered peril.
Protect Your Financial Viability
All businesses need some type of liability coverage. Commercial general liability (CGL) insurance protects you against damage that you cause to other people or other people’s property (bodily injury liability and property damage liability).
A liability judgment rendered against your business can be financially devastating, and your CGL policy can literally be your last line of defense. It provides coverage for damages that you, your employees or your products or services cause or are alleged to have caused to a third party. In addition, commercial general liability insurance provides coverage for the cost of your legal defense if you are sued.
Some businesses may need additional liability policies to protect from certain unique liability risks inherent to their business. Additional business liability policies that you need to consider include professional liability (errors and omissions) insurance, cyber liability insurance, product liability insurance, employment practices liability, and others.
Small businesses often purchase both property and liability coverage in one convenient package called a business owners policy, or BOP. BOPs often include commercial property coverage, commercial liability coverage and business interruption coverage.
Protect Your Business Automobiles
Commercial auto insurance protects your company’s vehicles and drivers. Commercial auto insurance covers your business cars, SUVs, vans and trucks in the event that they are damaged in a collision or some other event. If you do not have any company-owned vehicles but you or your employees drive personal vehicles for business purposes, you need to have non-owned or hired auto coverage to protect your company in the event that an employee is in accident while driving a personal vehicle for business purposes.
Protect Your Employees
Workers’ compensation insurance protects employees who are injured on the job. It provides income replacement and medical benefits to workers who sustain an illness or injury that is caused by performing their job. Employees are protected from the costs of treating the injury and from losing income while they are unable to work, and you are protected from the likelihood that an injured employee will sue you for additional damages. State workers’ compensation laws vary, but most employers are required to purchase workers’ compensation insurance or face fines for non-compliance.
Work With an Agent Who Understands Your Business
Working with an independent insurance agent who can serve all of your business insurance needs is the best way to make sure you have a comprehensive business insurance portfolio. Your agent should be able to find you the best policies that suit your unique needs and budget requirements. In addition, your agent should be a trusted advisor with whom you can have a long-term relationship.
Are you interested in learning more about the importance of insurance for your business? Do you have the right policies to protect you and your employees?