"Your business is unique your insurance should be too"
What is Business Insurance?
Business insurance coverage protects businesses from losses due to events that may occur during the normal course of business. There are many types of insurance for businesses including coverage for property damage, legal liability and employee-related risks. Companies evaluate their insurance needs based on potential risks, which can vary depending on the type of environment in which the company operates.
Types of Business Insurance
Several types of business insurance that small business owners might consider, including the following:
- Professional Liability Insurance
Professional liability insurance insures against negligence claims that result from mistakes or failure to perform. There is no one-size-fits-all professional liability coverage. Each industry has its own unique concerns that should be addressed.
- Property Insurance
Property insurance covers equipment, signage, inventory, and furniture in the event of a fire, storm or theft. However, it doesn’t cover mass-destruction events like floods and earthquakes. If your area is at risk for these issues, you’ll need a separate policy. Another exception is personal property that is very high value and expensive—this is usually covered by purchasing an addition to the policy called a “rider.” If there’s a claim, the property insurance policy will either reimburse the policyholder for the actual value of the damage or the replacement cost to fix the problem.
- Home Based Business
Homeowner’s policies don’t cover home-based businesses like commercial property insurance covers businesses. If you’re operating a home-based business, inquire about additional coverage for equipment and inventory.
- Product Liability Insurance
If your business manufactures products to sell, product liability insurance is very important. Any business can find itself named in a lawsuit due to damages caused by its products. Product liability insurance protects a business in such cases.
- Business Interruption Insurance
Business interruption (or continuation) policies are type of insurance is especially applicable to companies that require a physical location to do business, such as retail stores. Business interruption insurance compensates a business for its lost income during events that cause a disruption to the normal course of business.
Benefits of Business Insurance
Running a successful business always comes with inherent risks. A client could file a suit, a natural disaster can ruin things, or someone can get injured on the site. For this reason, it is essential that a business has an insurance policy in place to protect itself as well as its assets. Getting the business adequately insured provides the following benefits:
- Provides bodily injury coverage
In case the business or its operations causes injury to any other person, then the liability insurance covers for the bodily injury caused.
- Provides property damage coverage
In case the business or its operations causes damage to other party’s property, then the property damage coverage in the liability insurance, covers for such loss.
- Covers for advertising liability
In an event when the business violates copyright rule of some other party or business, it may cause a copyright infringement issue. However, liability insurance comes to the rescue as it covers the legal liability against such claims.
- Helps minimise the financial losses
Having a business insurance in place helps the business to reduce financial losses when an unfortunate event occurs.
For example, when there is a breakdown of a particular critical machinery, the firm might not be able to function properly, and this will lead to a loss of revenue. But having a business liability insurance policy will help the company to cover any losses incurred during the period.
- Coverage for lawsuits and settlements
When business causes damage of any sort, the liability insurance policy0020covers the investigation and attorney expenses, when a lawsuit is filed against it.
- Helps promotes business continuity
An unforeseen event can hit any company, and if the company does not have an insurance policy to help protect against such event, it may lead to the end of the business if not properly managed. However, a business liability insurance helps to minimise risks so that the business continues to operate and grow.
- Aids in risk-sharing
When a company makes losses, the insurance company can come to the rescue. In an event where some business hits severe misfortunes, it may not be able to solely afford the cost of getting back on track and running again. However, in case of an insured business, the risk is shared between the company and in the insurance company.
- Protects the business image
When a business suffers due to an unfortunate event, not only the business suffers, but its customers, stakeholders, shareholders and the public are affected too. Therefore, insurance helps to manage bad occurrences to protect the business and every customer attached to the business.