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5 Types of Insurance Coverage Your Business Needs

Thinking of starting your own business? No matter what type of business you plan on launching, managing a company is incredibly tough. Business owners encounter a number of risks every day that could jeopardize their business operations and productivity.

Insurance is an effective way to protect employers and employees from different types of risks. As a business owner, it’s critical that you purchase specific insurance policies.

In this blog, Insurance Executive, Gregg S. Marcus, summarizes the most significant insurance coverage for small, medium and large companies:

Property

Property insurance is an essential insurance policy for any company. It’s designed for properties owned as well as leased. Broadly speaking, property insurance can protect companies against losses and damages arising from fire, theft, vandalism, wind, snow, lightning and more. This type of insurance policy covers specific damages to specific property or possessions (equipment, inventory, furniture, etc.). It may also offer liability coverage if someone (besides the property owner) is injured on the property.

But, property insurance doesn’t offer financial compensation for losses due to floods, terrorist attacks, earthquake, and sewer backups. For covering these damages, you will need to buy separate policies.

One important thing to remember is that property insurance can include homeowner’s insurance. But, homeowner’s insurance is designed for covering losses, damages or destruction to personal residential properties, including homes, apartments, and more.

Having comprehensive property insurance can protect your company during an emergency.

Workers’ compensation

Workers’ compensation is designed to protect a company’s employees. If any employee is injured at work, they will receive financial compensation for medical treatment, disability or rehabilitation. It also provides benefits if an employee passes away.

The state requires all employers to have workers’ compensation insurance. An employee’s coverage depends on their work and payroll.

Auto

Accidents can happen anytime on the road. If your employees use the company car, buying auto insurance makes sense.

Auto insurance protects company vehicles in the event of theft and accidents. The cost of auto insurance depends on several factors, including type of vehicle; driver’s age, gender and driving record and more. For example, a bad driving history can lead to higher premiums. Most states have made auto insurance mandatory.

Professional liability

Professional liability insurance provides coverage against negligence claims. It’s primarily designed for lawyers, accountants or similar professional who could be used by their clients.

Generally, professional liability insurance covers claims during the policy period. In addition, different professions have customized professional liability insurance policies.

Product liability

Does your company manufacture products for sale? Product liability insurance protects product manufacturing companies against lawsuits arising from the products they sell in the market. It covers an array of products, including food, clothing, and more.

For more information on insurance for businesses, visit Gregg S. Marcus’ personal writing space.