5 Types of Business Insurance and Why You Need Them

5 Types of Business Insurance and Why You Need Them

No matter the size or character of your business, one thing that remains the same is the need for business insurance. There are many different aspects of your business that you’ll want to take into consideration when looking for new business insurance – or reviewing your current insurance coverage. Since every business is different, each one will have different insurance requirements. For example, a company that produces physical goods may need different insurance than a company which offers sets. In either scenario, there are some similarities, and listed here are a few types of insurance that all businesses should consider.

Workers’ Compensation Insurance – for your employees

Workers’ Comp insurance is required by law in almost every state. It can provide coverage for medical costs and a portion of lost wages for an employee who becomes injured or ill on the job. Typically, this kind of insurance only covers injuries or illness that occur on the job site – for example, if an employee slips and falls on a wet floor.

Since the laws regarding Workers’ Comp can be different depending on where your company is located, it’s important to work with an insurance specialized to make sure you’re getting the coverage that’s required, in addition as what you need for your particular business.

General Liability Insurance

General Liability Insurance is designed to protect you and your business from a variety of claims, including accidents, injuries, or claims of negligence. This kind of insurance can help pay for things like character damage, medical expenses, libel, slander, legal costs, and faulty products. No one expects to get sued, but the reality is that it’s always a possibility. You don’t want to leave your business open to these types of situations, and the broader the protection, the better.

specialized Liability Insurance – “Errors and Omissions” coverage

specialized Liability Insurance can also be known as “Errors and Omissions Insurance,” or “Malpractice Insurance.” It protects you from lawsuits that allege negligence in providing specialized sets, providing shoddy work, or making mistakes or omissions. This kind of insurance is particularly important if you have a service-based business, but can also be necessary for other types of businesses in addition. Mistakes happen – so adequate specialized Liability Insurance can be helpful, already if you don’t think you’ll need it.

character Insurance

The definition of “character” is general, and can average different things to different types of businesses. That’s why it’s important to make sure you carry adequate Commercial character Insurance. Without this kind of insurance, most small businesses wouldn’t be able to replace their equipment should something happen to cause damage or destruction. character covered by this kind of insurance can include buildings, computers, inventory, supplies and equipment. There are two types of character Insurance: “all-risk” policies cover just about everything, and is a good way to avoid duplication or overlap of coverage, in addition as gaps in trying to cover your limitations. “Peril-specific” policies, or “named-peril” coverage applies only to particular perils that are specifically named in the policy. They’re usually needed when there is a high risk in a very particular area.

Life Insurance / meaningful Executive Insurance – protection and assistance

Offering life insurance for employees can be a valuable assistance when trying to attract high-quality employees. A business can already offer additional coverage for executives. These employees are deemed to be crucial to the running and success of the business, and may sometimes require additional insurance, above and beyond what the normal employee benefits provide. This can be another assistance in attracting top talent.

A business can also offer special “meaningful Person” policies for employees without whom the business could not function. meaningful Person Insurance protects against a meaningful employee’s unexpected death – often times the assistance amount equals the expected revenue loss and costs required to find and aim a appropriate substitute. The business pays the premiums, and the insurance is considered a business asset.

It’s possible to combine some of these basic coverages as a package policy, often referred to as a Business Owner’s Policy, or BOP. Many insurance companies bundle certain coverages, and this can save you money, as long as you make sure you get the proper kind of coverage.

already if you feel you have adequate business insurance coverage that meets all your current needs, it’s nevertheless advisable to review all your coverage on an annual basis, to make sure that your coverage continues to provide everything that you need. This is particularly important if you or your business have experienced any major changes, such as change in family position, or a meaningful increase or decline in business activity. Additionally, be sure to work with a reputable, licensed insurance agent or broker, who has knowledge regarding business like yours.

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