Business insurance isn’t complicated; break it down by these categories.
Often, we hear things like “business insurance is complicated and difficult to understand” or that it seems like many policies may do the same things in terms of coverage. Let’s break down business insurance in its simplest forms.
Buildings and Property
Property and Casualty insurance covers building and property. As simple as that seems, there are a number of losses that aren’t covered, such as flooding as one example. Just because your business is in leased space and not owned also does not mean you can go without property and casualty insurance. So, in addition, it’s possible you need to consider certain types of disaster insurance, like flood insurance. Ask your licensed insurance professional their recommendations and why.
Every business must have workers compensation in place to protect them if an employee is injured on the job. Some states also require disability coverage be provided. Meet with your licensed insurance professional to determine what coverage is mandatory.
There are a number of additional insurances available to business. Ask your insurance agent/broker about options available for your business. Have a frank discussion about what risks your company faces while conducting your day to day business.
Benefits like health and life insurance are not mandatory, but are put into place to attract and keep qualified employees.
Your general liability coverage will include legal fees and damages in a covered claim and/or lawsuit. Bodily injury, property damage, personal injury, and general damages are normally covered. Professional liability however, is written under a separate policy and is often referred to as Errors and Omissions insurance.
A commercial auto insurance policy will cover your business vehicles and their drivers. Again, while seeming quite simple, many business owners assume a variety of risks by using their cars and assuming a personal auto policy will cover any risk. Sometimes, the auto coverage can be combined with Property and Casualty in a Business Owner’s Policy.
Use this as a guideline in reviewing options with your licensed insurance professional.