Most businesses need general liability insurance, and your state's laws may require workers' compensation insurance and commercial auto insurance. However, depending on the type of business, location, assets, and other factors, you may need other types of coverage. Business interruption insurance, also known as business income insurance, is one of the most common types of coverage needed by most small businesses. If a disaster occurs and your business must close for a period of time, this type of insurance will help you cover lost income or operating expenses such as mortgage or rent payments, loan payments, taxes, and payroll.
Business interruption insurance can be included in a Business Owners Policy (BOP). Insurers often combine a number of insurance coverages into a package that is sold as a single contract. If your company sells any type of physical product, you may want liability insurance for defective products. This covers legal costs if someone claims that a product you manufactured, sold, or distributed caused an injury, damage, or loss.
Both raw material suppliers and end retailers should consider this type of coverage. Companies that provide any type of professional service may be suitable for professional liability insurance. This type of coverage protects you against claims of negligence, misrepresentation, poor advice (even if you think it's good advice), or losses due to the services you provide. Accountants, lawyers, writers, photographers, designers, consultants and many companies should consider liability coverage.
If your business owns or rents a property, commercial property insurance may be a good decision. Just as homeowners insurance protects you and your property from losses caused by fire, theft, and other covered incidents, your insurance policy would pay for losses up to the policy limits. Most companies wouldn't want to buy this coverage on their own; it combines well with general liability insurance and other commercial insurance. If you buy multiple policies from the same insurer, you may qualify for discounts.
Consult your insurance agent or broker about the type of commercial property insurance most suitable for your small business. There isn't one type of insurance that meets the needs of all businesses; you'll need a mix of business insurance plans depending on your location, company, and industry. B2C companies often use E&O coverage to protect against claims that their services caused customers financial hardship or bodily injury. This may include coverage for business-owned computers and equipment, files, and other covered business assets and liabilities.
One way to protect your small business against the inevitable is to purchase small business insurance. General liability insurance is essential coverage for a variety of claims including bodily injury, property damage, personal or publicity injuries, medical payments, completed operations and damage to the facilities you rent to you. Business owners and managers who would like to review their policies can contact a Westfield agent today to learn about the options that best fit their specific commercial insurance needs. Property insurance compensates a business if the property used in the business is lost or damaged as a result of several types of common hazards such as fire or theft.
You'll likely need commercial auto insurance if you have vehicles that are used for commercial purposes such as dump trucks, cranes, snow plows, commercial semitrailers or vehicles that exceed 10 000 pounds or vehicles with business equipment installed (e.g., delivery vans). As the name suggests general liability policy provides coverage that is superior to a company's other liability coverages; this type of coverage is ideal for owners of small and medium-sized businesses such as restaurants retail stores and wholesalers. Small businesses with movable commercial assets can take out inland marine insurance to protect their equipment products or materials while in transit by truck or train. For example if a company has an outside sign the BOP doesn't cover it unless coverage is specifically added for an additional premium.
Nearly every business can benefit from liability protection such as a business owners policy, management liability insurance professional liability insurance or product liability insurance. Business income insurance also covers additional expenses that may be incurred if a business must operate outside of a temporary location.