Types of Business Insurance
by Admin
Posted on 11-07-2022 10:32 PM
Types of Business Insurance
There are many types of
insurance
options out there that business owners can get. Insurance helps protect your company from different risks that can come up during normal operations. Choosing what business insurance you need can seem overwhelming, but we’re here to help. Many business owners start with a business owner’s policy (bop) for their small business insurance needs. It combines three essential coverages:
general liability insurance
commercial property insurance
business income insurance
we made our bop customizable, so you can add other business insurance coverages to get more protection. For example, if your business provides a professional service to customers, you may want to get a professional liability insurance policy.
There is a wide array of different types of business insurance that cover business losses, but there are three main categories that are both required by law and essential in protecting your business interest. Those three main categories are: property insurance, liability insurance, and workers compensation. Property insurance covers any damage done to the physical assets of the business. This includes the building the business is operating in, cars owned by the company and assets such as computers and servers. Property insurance will cover most accidents such as fire or flood, depending on the specific coverage lines elected. Property insurance may also cover theft.
The types of risk your small business faces will dictate the policies you should purchase. For instance, small businesses with valuable property should consider commercial property insurance , which covers your physical assets against loss or damage due to vandalism, natural disasters, and other similar events. If you are a small business owner in a low-risk industry, you may be able to cut premium costs by combining this policy with general liability insurance in a business owner’s policy (bop). These policies address your bare-bones exposures. However, you may need additional coverage depending on your industry, location, and operations. For example, most state laws require you to carry workers’ compensation insurance if you have employees.
There are nine basic types of business insurance every small business needs (or should at least think through) to protect your business.
The Right Types of Insurance for Businesses
Business interruption insurance, also known as business income insurance, is one of the most common types of coverage most small businesses need. If a disaster strikes (such as a fire, flood, theft, building collapse or civil authority incident) and your business is required to shut down for a period of time, business interruption insurance will help cover lost income or operating expenses like mortgage or rent, loan payments, taxes, and payroll.
Business interruption insurance can be bundled into your bop. Tip: to rebuild your business after a natural disaster , communicate transparently with customers, and be flexible and compassionate with employees and vendors.
A business owner’s policy, or bop, combines the most common types of property and liability insurance a business owner needs into one convenient, comprehensive package at a competitive rate. Bop insurance is generally purchased by small businesses. Mid-market and larger businesses with more complex insurance needs generally buy separate policies for each type of insurance. How it can help you: bop protects your company from a wide variety of damage, from customer falls to property damage. Because the insurance is bundled, a business owner’s policy is often less expensive than if individual coverage was purchased separately.