As soon as you start a business, you open yourself and your company up to a variety of risks. This makes having the proper commercial insurance policies in place extremely important to make sure you are protected from the beginning. The good news is that as a business, you have access to wide range of insurance types to protect your company from any possible danger. Read on as Capital Insurance outlines a few of the different types of business insurance policies that are available.
1. Liability Insurance
Business liability insurance comes in many varieties. Depending on the nature of your business, some may apply more than others. Regardless of type, having some form of liability insurance is extremely important. Liability insurance is meant to protect you, your employees, and your customers in the event of an accident. Below are three types of liability insurance.
Commercial General Liability
Every business is at risk for liability claims. General liability protects you from two of the most common liability claims: bodily injury and property damage.
Bodily injury
These types of claims include trips, falls, and other accidents on your property and assume that some sort of negligence took place for the injury to occur. These claims are expensive and time consuming and can result in you being responsible for medical bills, lost wages and legal fees.
Property Damage
These types of claims result from property damage occurring to a customer while on your premises. Your general liability insurance can help to cover the costs associated with repairs, replacements, or legal fees.
Product Liability
Product liability insurance is especially important for businesses that sell a product instead of a service. If there is an issue with one of your products and the source of the problem is traced back to you, you could find yourself in a costly and time consuming legal battle. Common product liability claims include:
- Faulty products
- Products causing bodily injury
- Products causing property damage
Having the proper product liability policy in place will protect you from the legal and medical costs that may arise. Coverage can even be tailored to a specific type of product.
Professional Liability
Just because your company doesn’t sell physical products doesn’t mean you shouldn’t have any liability insurance. Professional liability insurance, also known as errors and omissions insurance, covers service-based businesses against claims of mistakes or failure to perform. Below are a few examples of the types of businesses that will benefit from professional liability insurance:
- Graphic designers
- Accountants
- Interior designers
- Engineers
- Financial advisors
2. Property Insurance
As all business owners know, it takes a lot more than just a great idea to run a business. It takes computers, desks, fax machines and more! Whether you own or are leasing a business space, commercial property insurance is a must. This coverage is designed to protect your company’s physical assets, such as the building, furniture, and equipment in the event of a fire, storm or theft. Your coverage can even extend to things outside of the building like signage, fencing, and trees.
Large scale events of mass destruction like floods or earthquakes are not usually covered under a standard property insurance policy, so if your area is prone to these issues, you’ll want to look into additional coverage options with your broker.
3. Business Interruption Insurance
In the event of a disaster, it’s likely that you business’ operations will be interrupted. Depending on how long your business is put on ‘pause’, you could see negative results ranging from a small hit to your bottom line to a total company shutdown. Business interruption insurance is designed to help keep your business going after a catastrophic event. It can cover bills, payroll and other expenses until you are back on your feet. Interruption coverage is especially important for companies that rely on a brick and mortar location to conduct business. Consider the types of risks your business faces, and then chat with a professional to see if business interruption insurance is right for you.
4. Cyber Risk Insurance
Cyber insurance is meant to help protect your business from damages related to electronic data, computer systems, data breaches and computer attacks. As our world shifts towards a more digital environment, the threat of cyber attacks continues to grow. Businesses of all sizes are susceptible to breaches and hacks. If you fall victim, your cyber insurance policy will help with the costs associated with getting your network up and running again. If you plan on using a computer for any part of your business, consider adding this coverage to your business insurance policy. Breaches in online security have been proven to negatively impact a customer’s impression of a business. Approximately one third of customers will stop dealing with a company completely following a breach, even if their information wasn’t compromised.
5. Vehicle Insurance
If you plan on having company vehicles, you’ll need a special commercial auto insurance policy to cover any injuries or accidents that may occur. Commercial auto policies aren’t just for a company fleet. Did you know that if you are transporting products or equipment for your business and get into an accident, your personal auto policy may not cover and damage to your products? Even small business owners may want to consider a commercial auto coverage if they plan to use their vehicle for business purposes such as delivering goods or services.
For answers to all your commercial insurance related questions, contact the team at Capital Insurance.
