5 types of business insurance coverage

How many policies do businesses have? As insurance agents, we are frequently asked this question, but there are no easy answers. Business insurance depends on what your company does as well as where you are located. With inadequate business insurance, you run the risk of paying out of pocket if a claim comes against your company. Often small companies do not have the funds to pay for insurance claims, jeopardizing their business as a whole. To keep your business protected against costly claims it is the right investment to insure your business. When you are evaluating insurance for a company here are 5 types of business insurance to consider.

General liability insurance (GLI)

General liability insurance is a great place to start when assessing your business insurance needs. This insurance policy is the most common and it is meant to cover shared needs across many business verticals. GLI can also be referred to as business liability insurance or commercial general liability insurance.

A general liability insurance policy protects your business if your business causes injury or damage to someone else. For example, if your customer slips in the store, or if one of your employees damages your client's property when working on a job, general liability insurance can cover you.

Professional liability coverage

Professional liability insurance covers the costs of errors incurred when implementing a service that you specialize in. This coverage is also called errors and omissions insurance or E&O insurance.

For example, if you are an accounting business and you make a mistake in a client's financial statement or if you are a realtor and your client thinks you have undervalued their home professional liability insurance will cover the legal costs.

This coverage is important to include in your business insurance because even if your business did not make a mistake this coverage will cover the costs of legal action if a customer chooses to sue your business.

Commercial auto insurance

This coverage is very similar to your own car insurance however it is specifically for company vehicles. It can cover things from vehicle repairs to accidents. For example, if you are making a delivery and accidentally hit a fence when backing up, your commercial auto policy can help you cover any property damage. The amount of coverage you need can vary state by state so make sure to talk to an insurance agent about finding the coverage that is right for you.

Workers' Compensation Insurance

Keeping employees safe and protected is of the utmost importance, this is why many states require this coverage for employees. Workers' compensation insurance covers work-related injuries or falling ill in a workplace. For example, if a worker has suffered carpal tunnel in a job requiring long typing hours and poor ergonomic conditions, this plan may be able to cover the costs. Sometimes this coverage can also include liability insurance to help you cover any potential lawsuits that may arise.

Commercial Property Insurance

Commercial Property Insurance provides protection for your building, your property, or others belongings that are in your posession. This insurance can help cover you if you experience theft, vandalism, fire and some types of weather related events. Even if you rent, you should consider commercial property insurance to protect your assets within the building.

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