What type of business insurance should I carry?

Choosing the proper insurance coverage for your business and minimizing the risk your company is exposed too can be a daunting task.  In this article, we‚ will address the typical coverage a business should carry and offer some insight into other coverage available to business owners.

It is important for a new or existing business owners to understand the language of business insurance.  In addition, it is important to establish a relationship with your insurance professional.

Most small companies don’t have a full time risk assessment manager on staff to answer the questions or concerns of a business owner.  So lets start with the basic coverage needed by a business to protect the company.  The three main types that should be considered are General Liability, Workers Compensation, and Property insurance.

Property insurance protects your business property and inventory against loss or damage by accident, theft, or another cause or by another party.  Often, your property insurance may be purchased in conjunction with your general liability coverage.  These combined policies are often sold as Business Owners Policies or B.O.P.

General liability insurance protects the company against claims of injury either bodily or physically.  This would protect you in the event of an accident at your business or in another location where you or your employees are conducting business. As noted above, general liability protection is offered through a B.O.P.  In some cases, a business may also need professional liability coverage.  Discuss professional liability with your insurance professional.  Medical Malpractice Insurance is an example of professional liability insurance.

Almost every state requires workers compensation insurance.  This insurance covers medical and loss wages to an employee injured conducting company business.  It also protects the business from being sued by the employee.

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