Business insurance is the type of insurance coverage that protects business and investments from any loss or damage. according to investopedia,
Business Insurance‘ Insurance coverage that protects businesses from losses due to events that may occur during the normal course of business
With business insurance, you are sure about your business not going into extinction if there is any sad incident of business havoc or failure. There is a saying that says “Protecting your business is good business” and indeed, it is. Not having business can be the reason why you will eventually go out of space and won’t survive surviving business calamity because you lost losing everything.
Over time, many business owners have learned it in the hard way how an accident, a lawsuit, theft or natural disaster can wreak havoc on their companies that took them years of hard work to build. Research carried out by Insurance Institute for Business & Home Safety shows that 25 percent of businesses that experience a disaster never reopen their doors again. There are so many insurance companies out there with good and affordable services to choose from and make sure your business is insured today, but then you will need to know the type that best suits you and hoe to go about it.
7 Types of Business Insurance to Ensure Your Company With
General liability coverage helps protect your company from loss when someone is injured at your business location or if damage or injuries occur as a result of use of your products or services. It guards your business against situations that could be perceived as negligence. The financial obligations covered by most general liability policies includes medical costs, legal defense expenses and settlement awards in cases when your business is sued.
Professional liability is also known as errors and omissions insurance. This type of insurance protects your company from claims that points to negligence damage or malpractice in a clients or other third party’s job. Some states require physicians and other professionals to carry professional liability policies in their insurance, according to the U.S. Small Business Administration.
- Business Property
This type of insurance covers loss and damages to owned or leased company property which may occur as a result of events like, fire outbreak, wind or vandalism. In business insurance, there is “all risks” business property policy which covers loss and damage from a range of sources and “named peril” business property policy specifies the types of hazards it covers.
4. Business Vehicle
Business vehicle is a type of policy that protects your business against damage to an owned or leased vehicle that you or your employees use for business purposes only. The plan also provides coverage when a third party makes a claim of bodily injury or property damage related to an auto accident.
5. Business Interruption Insurance
This insurance policy protects your business against the effects that come from unexpected events and natural disasters that may cause your company to temporarily relocate or close down entirely. The policy helps businesses to maintain cash flow while they replace equipment and repair physical damages to their company facilities. It typically provides reimbursement for up to a year of lost revenue.
6. Business Owner’s Policy
Business owner’s policy is also known as BOP, the policy rolls multiple types of insurance into a single policy, usually at a lower cost than buying each type of insurance individually. business owner’s policy can as well include business interruption, business property and general liability coverage.
7. Umbrella Liability
The umbrella type of type of insurance fills any gaps left by the insurance policy that your company carries. For instance, if you have a general liability policy that has a coverage limit, the umbrella insurance policy will cover losses that exceed this amount that the general policy cannot. At the same time, it can as well provide protection in areas excluded by other policies. However, the premium for an umbrella policy may be lower if you purchase it from the same insurer who provides your other policies, else, you may get it at a higher cost.
With this, umbrella liability policy is a recommended choice to make in protecting your company.