As part of conducting business - you need to insure almost every aspect of your operations to protect your company from claims and lawsuits that most often than not will cost you financially.
The risk involved in running a business is broad and has many aspects. Insuring a property, protecting employees, customers and your business assets to name a few. Dealing with claims and lawsuits while running a business is not a matter of if but when you're going to get one.
There are various different types of commercial business insurance policies. Continue reading to learn more about what those are.
What Are the Different Types of Business Insurance?
When it comes to commercial insurance, there are several different types of policies you can purchase. Most businesses – small or large should never go without General Liability. Depending on your overall exposures, some or more may be required to establish the proper insurance program necessary should a loss occur.
This means that the type of commercial insurance you get will mostly depend on the side and industry you are in.
Business Owner’s Policy (BOP)
BOP insurance policies and other dorms of commercial package insurance combine a number of different types of insurances into one policy. An example of a BOP insurance policy would be a combination of:
- General liability insurance
- Property insurance
- Workers Compensation
- Professional Liability / Errors and Omissions
The combination of policies you get under a BOP policy will depend on your business and insurance preferences.
General Liability Insurance
General liability insurance can cover you in the event that someone claims that your business has injured them or damaged their property while performing a service for them or because of your product. For example, if a customer trips over a rug because it's not fixed down properly, they may have a claim on you for the injuries that they have sustained. Or while conducting services at a clients location, the work you perform results in damage to their property or results in bodily injury to others.
Commercial property insurance will cover you in the event that your business premises are damaged by fire, flood, or some other catastrophe. A commercial property insurance policy can also provide coverage for your contents and stock.
For example, if there is a water leak in your building and it damages all of your office equipment - this would be covered under commercial property insurance.
Workers’ compensation will cover any injuries that employees may sustain as a result of doing their job. Workers Compensation is a statutory requirement in most all states. The laws very as to how many employees or the status of those employees trigger the need to have this coverage. Regardless of state requirements, the coverage is incredibly important to cover lost wages and medical expenses of injured staff.
Professional Liability / Errors and Omissions (E&O)
Professional liability (E&O) covers claims made by the customer for the wrongdoing of a professional. It can be an accountant, lawyer, architect, and virtually anyone that can be held responsible for their professional actions. Some examples of E&O claims can be:
- An attorney giving wrong advice
- A CPA who understands your tax liability but fails to file it on time
- An architect whose faulty plans result in structural damage
Other forms of business insurance include:
- Commercial/Business Auto
- Cyber Liability and Data Breach Coverage
- Cargo and other related Inland Marine Exposures
- Employment Practices and Employee Crime
What Are the Benefits of Having These Types of Insurance?
While most commercial insurance policies are required by law in most states, even if the policies relevant to your business aren't a legal requirement, they are always great to have.
The biggest benefit of having any of the above policies is the financial umbrella they provide your business with. Lawsuits and claims can be very expensive and can leave a significant financial hole in your business, which can be hard to recover from.
In other words, if you don't want to suddenly have to get out of pocket money for sudden accidents, get your business insured.
Get Insured Today
Get a free business insurance quote online, or contact one of our team members below.
Lead Producer: Zachary Frederick
Email: [email protected]
Dawn Schafer: (D): 267-362-4968
Anthony Bruno: (D): 267-347-1646
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