As a business owner, it is vital that you purchase the business insurance policies that will best protect your assets in the event of an unforeseen circumstance for which you are held liable. In this article, we will go over common business insurances, and we will discuss each one briefly.
General Liability Insurance
This insurance will cover the costs related to the bodily injury or property damage that is caused by a product or service rendered by your or your employees. In addition, general liability insurance will help you to pay for legal fees and lawsuits, and it can be purchased you whether your business is based in your home or in an office building.
When you go into business for yourself as a landlord, this insurance will give you peace of mind regarding any damage that may occur to your building as the result of vandalism, natural disasters, or theft. Landlord insurance will also cover the legal expenses related to lawsuits that are the result of injuries that occur on the property.
Commercial Property Insurance
Your place of business will likely contain equipment and merchandise that is worth a significant amount of money. Commercial property insurance will help you to recover the cost of items that are damaged because of fire, smoke damage, acts of vandalism, and more.
Workers' Compensation Insurance
This insurance is required by law, though the exact requirements will vary from state to state. Workers' compensation insurance will provide a portion of an employee's income to him or her while they are recovering from injuries incurred on the job site. It also will cover the legal costs associated with lawsuits pertaining to said injuries.
Commercial Automobile Insurance
Commercial automobile insurance requirements are different in each state, but each state requires that you carry this insurance for business-owned cars, trucks, or vans that are operated by your employees or staff. This insurance will cover bodily injury, property damage, and legal costs for accidents caused by you or your workers.
Professional Liability Insurance
This insurance will protect you in the event that your product or service causes harm to someone, because it failed to perform properly or because a mistake was made. Professional liability insurances are tailored to the industry for which they are written, and this insurance is sometimes also referred to as errors & omissions insurance.
Commercial Umbrella Insurance
A commercial umbrella insurance policy will be written to work with your existing commercial insurance policies, and it will provide you with extra coverage. When you file an insurance claim, your primary insurance coverage will pay up to a certain amount, and then your umbrella insurance coverage will kick in.
The limits on umbrella insurances are typically much higher than on standard insurances, and they can include scenarios that are not written into traditional policies. For example, a commercial liability umbrella policy can cover lawsuits relating to slander, false arrest, and copyright issues. In addition, umbrella insurances are available to supplement business insurance policies that include general liability, commercial property, workers' compensation, landlord insurance, and more.
It is recommended that you contact an agency that specializes in commercial insurance and that you speak with an agent who will provide you with the business insurance package that is specific to your needs as a company.