Protect Your Business with Appropriate Insurance Coverage

Business insurance keeps your company safe from unexpected expenses. When accidents occur, or natural disasters put you out of action for a day or a month, your business could suffer irreparable damage. The financial weight of lawsuits, even when you win, could put you out of work. The right coverage is crucial to the ongoing wellbeing of your business.

What Are Your Insurance Needs?

When you set out to purchase business insurance, begin by determining the type of insurance you need. For example, if you have an LLC, you may keep your personal property out of risk during a lawsuit, but other business structures may not. In some situations, the federal government requires specific types of insurance, such as workers’ compensation and disability and in some states, additional insurance is required. Choose an insurance type that satisfies legal regulations and provides coverage for all of your business assets and your personal assets.

Common Types of Business Insurance

There are six types of business insurance that are commonly chosen for businesses. Learn more about your options before you contact an insurance provider.

• General Liability Insurance is appropriate for most types of business and provides protection against financial losses due to property damage, lawsuits and settlements, injuries and medical expenses, and similar risks.
• Business Owner’s Policies are written for owners of small businesses and home-based businesses. The coverage comes in a bundle of several typical coverage options.
• Commercial Property Insurance is geared toward businesses with a lot of property and/or physical assets. The coverage protects businesses from financial losses and damage that result from natural events (such as fire, smoke, and wind), vandalism, and civil disobedience.
• Home-based Business Insurance offers protection for owners who run businesses out of their homes. The coverage is generally added to their existing homeowners’ insurance in the form of a rider and covers business equipment and third-party injury liability.
• Product Liability Insurance is designed for businesses with products in manufacturing, storage, distribution, and retail settings. The insurance provides protection against losses due to product defects that lead to injuries and similar harm.
• Professional Liability Insurance is meant for service-oriented businesses. This type of business insurance covers losses that result from malpractice, negligence, and errors.

Assess Potential Threats

After determining which type of insurance is most appropriate, create a list of scenarios that could threaten your business. Work closely with an insurance agent who has experience with your type of business to correctly assess your risks. You may be presented with a few different options, so carefully compare the various rates and benefits. Many business owners have found that it’s helpful to make this assessment every year as your business grows and your liabilities change.

Confidence in the Future

There are many laws governing the type of insurance you need for your business and failure to abide by those laws could result in heavy penalties. The right type of coverage can keep you in business when disaster hits or a suit is filed against you. Adequately insuring your business provides protection for your employees and assets. It’s impossible to predict every scenario that could affect your company, but with comprehensive protection in place, you’ll have peace of mind and confidence in what the future holds.

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