If you’re thinking about or if you’ve already started your own business, then you should know about business insurance. If you don’t know the ins and outs of this type of insurance then don’t worry, we’re here to help.
Business insurance helps cover the costs of lawsuits, lost business income, property damage, as well as other covered losses. It protects your business (and you!) from specific risks. And, because each company is different, insurance for your business may combine several different policies to meet your needs. Typically, this includes property, liability, and income coverage.
Basic Business Insurance Coverage
One of the most popular packages is a Business Owner’s Policy, also known as a BOP. BOPs usually include coverage for business property, business income, and general liability all in one policy. Combining these coverages into a BOP saves money and makes things very convenient for business owners.
Business property insurance protects your company’s buildings and personal property. This may also include equipment, furniture, inventory, and tools.
Business income insurance helps replace any lost income if your business must close temporarily due to a covered event. It also may help cover expenses while your property is under repair.
General liability insurance coverage helps protect you, the business owner, from the cost of injury or property damage claims against your company. This could include injuries in your store or the cost of advertising errors. It also helps cover the costs of the claim and has the potential to help with the expense of a legal defense.
Professional liability insurance helps with costs around claims stating your business made errors when providing services. Nobody is perfect and this type of insurance can really save your company. A business doesn’t necessarily have to do anything wrong for a customer to file a complaint or a suit. Depending on the specific situation, this coverage may help defend your business if you’re sued by a client.
Workers’ compensation insurance helps cover the costs surrounding incidents where employees suffer injuries on the job and are unable to work. It can also provide coverage for programs to help employees prepare to return to work following their absence. In addition, if the employee attempts to sue your company, it can help cover any legal fees pertaining to the case.
Additional Types of Business Insurance
Sometimes these forms of business insurance aren’t enough. Your company may need additional coverages to ensure full protection. These may include some or all of the following coverages.
Commercial automobile policies help protect you and your business from the expense of work-related automobile accidents. If you or one of your employees are in an accident when driving for business purposes, then this coverage will help cover at least some of the associated costs.
Commercial umbrella insurance is a safety net providing additional coverage when other policies max out their limits. For example, if someone injures themselves in your place of business they may file a claim against you for $100,000. If your general policy has a limitation of $75,000 then an umbrella policy would help cover the difference. This type of coverage is particularly helpful for protecting businesses and business owners from potentially devastating claims and lawsuits.
Data breach insurance is important for businesses who may be at risk of cyber attacks or threats. In the event of a data breach, this coverage can help cover the expenses incurred finding the source of the breach. It will also help with costs related to mitigating damage, communicating with any affected individuals or companies inside and outside of your company, as well as public relations.
Other Specific Business Insurance Options
Depending on your business you may or may not need these coverages. The best thing about business insurance is the ability to pick and choose what your company needs to stay protected.
Commercial flood insurance is exactly what it sounds like. It protects your business from the expense of flood damage. This typically includes damage to physical business locations as well as assets.
Employment practices liability, also known as EPL, offers protection in the event that an employee sues you. Lawsuits are costly, even if the company or business owner has done nothing wrong. EPL can help cover the financial costs in the event that something like this happens. Some of the common things employers file lawsuits for include:
- Wrongful termination
Multinational insurance helps to streamline coverages if you operate both within and outside of the United States of America.
Home based business insurance covers costs of property risks as well as liability risks to businesses that operate out of the owner’s home. Any home based business that keeps supplies, equipment, or any other business property at home, or one that has customers stopping by can benefit from this coverage.
Fidelity and surety bonds are other ways you can protect your business. A fidelity bond is a type of insurance protecting your company against financial loss due to theft or fraud by an employee. Surety bonds are contracts between three parties that help make sure commitments are met and guaranties payment if they aren’t.
Choosing the Right Insurance for Your Needs
Despite all the coverage options, there are still certain things you can’t protect yourself or your business from. Some commercial policies may not cover certain types of natural disasters such as floods or earthquakes. Still, there are some things you can do to limit your risk.
The most important step you can take in protecting your business is to speak with a professional insurance provider. They will have the knowledge and experience to help you decide which coverages are best for your company. You don’t want to over pay, but you also don’t want to be under covered. There’s a delicate balance to finding the right insurance combination and this isn’t something you should tackle alone.
Call Complete Financial Group today at (940) 382-9300 to learn more about selecting the right business insurance for your company.