Insurance coverage that protects businesses from losses due to events that may occur during the normal course of business. There are many types of insurance for businesses including coverage for property damage, legal liability and employee-related risks. Companies evaluate their business insurance needs based on potential risks, which can vary depending on the type of environment in which the company operates.
No business should go one day without general liability coverage. This type of policy covers the business in the case of a claim or lawsuit that arises from injuries, accidents, or negligence. Covered claims may include bodily injury, personal injury, property damage, slander, or false advertisement. The insurance provider covers all covered expenses including legal representation except for punitive damages.
This type of liability policy is also known as errors and omissions insurance and is most often purchased by businesses that provide professional services. It covers the professional business owner from malpractice, errors, or negligence in the services provided to customers. Some states require certain professions, such as doctors, to carry this type of policy.
Commercial property insurance polices are available for businesses that operate out of standard commercial buildings. These policies cover loss and damage to company property because of theft, fire, smoke, wind, hail, vandalism, and other covered events. Company property is usually defined as buildings, equipment, documents, business interruptions, lost income, and money. A home-based business can purchase similar coverage in addition to their home owner’s policy. In some case, riders can be added to a traditional home owner’s policy to cover certain losses, but it is generally not as extensive as separate coverage.
Any business that hires employees outside of the owner’s immediate family should purchase a workman’s compensation policy. In fact, most states require this coverage. If an employee is injured on the job, this policy covers their medical expenses and loss of income. In the case of permanent disability, a workman’s compensation policy can provide benefits until the employee reaches retirement age. Most business owners aren’t required to cover themselves or any workers in their immediate family. If they opt-out of coverage for themselves, they should look into personal disability insurance. Rates are based on hours worked and the average injury rate for a specific industry. For example, residential construction workers who work on roofs are rated higher than those who install interior trim because of the increased chance of falls from high work areas.
If a business uses vehicles in the normal course of business, they will require commercial auto insurance. In addition to covering personal injury and property damage, commercial auto insurance covers the business for loss of use in the case of an accident.
An umbrella policy is a catch-all for anything that slips through or exceeds the limits of any other policy. These policies are relatively inexpensive, but often require business owners to purchase the maximum limits on all other policies.
- General Liability
- Property Coverage
- Product Liability
- Professional Liability
- Employment Practices Liability
- Directors and Officers
- Cyber Liability
- Workers Compensation
- Group Health Insurance
Website presence, e-commerce site, law offices with client records, medical offices with electronic medical records or physical files, marketing companies, website developers, accounting firms,
Protection for any error, omission or negligent act. Ex. Lawyers, Doctors, CPA's, Marketing and Technology companies
Protection for employee claims for sexual harassment, discrimination, failure to promote, etc.
Protects against the decision making for the board. Normally for nonprofits, only if they have a large board