Risk is everywhere, both at home, at school or in your business. Insurance for homeowners is more comprehensive with eight different types of standard homeowner insurance policies. Business owners, on the other hand, are exposed to manifold risks that greatly differ from one business to another. Thankfully, there are some insurance covers and industry specialties that are tailored to cover your business’s exact needs.
This piece will highlight a few of the most common insurance policies for businesses and why they are important. Hopefully, you’ll be able to make an informed decision when deciding on insurance policies.
Common Types of Insurance Covers for Businesses
From the get-go, business owners are prone to a multitude of risks that may work to the detriment of any business. With that in mind, there are a few insurance policies that may have you better placed for unforeseen circumstances that may be costly or lead to legal confrontation. Some of these commercial packages include.
1. Professional Liability Insurance
Professional liability insurance is better known as errors and omissions insurance (EandO). The package is meant to protect a business owner and his/her affiliates from liability because of failure to perform or meet one’s end of the deal. Of course, the terms of a professional liability insurance policy will vary depending on the firm in question. This difference means there is no set of rules that apply across the board, so what works for another business may not always work for you.
2. Worker’s Compensation Insurance
The moment you hire your first employee, you should seek a worker’s compensation insurance for your business. The package will cover almost everything concerned with employees. This coverage includes medical expenses plus disability and death liability in case of any work-related injury or death. Remember, even a tiny accident that results in an injury could amount to a pretty costly claim, so you’re better off settling for the worker’s compensation package in the end.
3. Commercial Auto Insurance
Just like ordinary vehicle coverage, commercial auto insurance covers your vehicle in case of an accident and also protect you from liability. The terms of commercial and private auto insurance policies may, however, differ greatly. A good commercial auto insurance package should cover third-party employee injury from an accident at the very least. More comprehensive packages may even cover repair or replacement of the damaged vehicle. Perhaps worth noting is that most commercial auto insurances won’t cover for damage of goods your company delivers at a fee.
4. Property Insurance
Property insurance is among the most sought-after sectors by industry specialties. Whether it’s a privately owned establishment or a leased space, property insurance is a must-have for any business owners with physical assets. This package covers any signage, furniture, inventory, and equipment in case of fires, theft or vandalism. The package is especially beneficial for industries and factories that operate under very precarious conditions. It is worth noting, however, that this type of insurance doesn’t cover damage from natural disasters like hurricanes or floods, which brings us to our next package.
5. Flood Insurance
While there’s a lot of debate on whether flood insurance falls under industry specialties, what is certain is that flood insurance is a must for business operating in flood-prone areas. There’s not much you need to know about flood insurance apart from the fact that they cover damages from floods including flash floods, tsunamis and other naturally occurring phenomena that cause floods. You’ll, however, need a separate insurance cover for sewer backup since a sewer or piping failure does not occur naturally. Though uncommon, there are plenty of flood insurance experts who can help you with matters concerning flood damages
Industry specialties are great for businesses and will give you a clear head while conducting your normal operations. Always consult with your insurance agent and business litigation lawyer before settling on a package to get the best out of your cover.