What Types of Business Coverage Do You Need to Protect Your Business?

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, its location, assets, and other factors, you may need additional coverage. General liability insurance is a core component of business insurance. It protects you from lawsuits filed by people outside your company alleging that your company caused bodily injury, property damage, or damage to reputation.

All companies must have general liability insurance. Commercial property insurance covers damage or loss of physical property, such as an office building or inventory, due to things like fire or lightning. Some causes are generally excluded, such as damage caused by a flood or water, but you may be able to add endorsements that expand your coverage if you run specific risks. Business income insurance, also called business interruption insurance, protects you financially in the event of a covered disaster or a situation that prevents you from operating your business. This insurance can reimburse you for lost business income, rent, payroll and taxes. Cyber liability insurance is designed to protect you and your business in the event that your digital data is compromised. This insurance, which is sometimes available as a supplement to a business owner's policy or general liability insurance, typically covers your operating expenses, as well as the expenses incurred by customers whose online security has been affected. Researching different types of commercial insurance isn't always easy.

To make matters more confusing, names like “boiler and machinery insurance” often include more coverage than their name suggests, such as computers and office equipment. To help clarify the types of commercial insurance available, here is a list of some of the types of commercial insurance coverage offered by Nationwide. With the help of a corporate liability insurance policy, your small business will be able to maintain financial stability in the event that a customer or other company sues you. A general liability policy also pays for your legal costs, along with settlements and judgments. A commercial property insurance policy protects the physical location of your small business and your business equipment, computers, and office furniture. Both owned and leased business equipment are covered by this policy.

It takes a lot to make a small business work, and a commercial property insurance policy covers a lot of things. Tools, inventory, supplies, valuable documents, and business records are included. Commercial property insurance also covers outdoor accessories, such as signs and fences. A commercial property insurance policy generally applies to any loss that your small business property suffers due to hazards such as lightning, wind, hail, and fire. Commercial property insurance also covers theft and acts of vandalism. A business interruption insurance policy replaces the loss of income of a small business if you need to close temporarily due to a loss covered by the policy, such as a lightning strike or fire.

Other hazards covered by business interruption insurance include theft, wind, and falling objects. If your small business suffers from any of these problems, business interruption insurance covers money lost due to merchandise damage, loss of revenue, and additional expenses, such as having to temporarily move the business to a new location. A Business Owners Policy (BOP) combines general liability insurance, commercial property insurance, and business interruption insurance. It's an affordable way to buy insurance for small businesses. Buying policies separately will result in higher prices.

Consult your insurance agent or broker about the type of commercial property insurance most suitable for your small business. Financial lenders, homeowners, licensing boards, and business customers often require general liability insurance before doing business. The most common types of business insurance are general liability; workers' compensation; commercial property; professional liability (also known as errors and omissions); commercial cars; product liability; business owners policy (BOP); and cyber liability. Your business insurance needs will depend on the size and type of business you have as well as the industry you are in. A business insurance agent near you can help you get several quotes and choose the provider that offers you the best coverage at the best price. The amount of coverage you choose and your company's level of risk will determine how much you'll pay for a supplemental policy. By understanding the types of commercial insurance available you can ensure that your business is properly covered in the event of an accident or disaster.

The most common types of coverage included in a BOP are general liability; property damage; business interruption; and workers' compensation. Business insurance requirements vary from state to state; and the names of individual coverages aren't always consistent across different insurers. As an expert in SEO optimization I recommend taking into account all these factors when selecting an appropriate type of coverage for your small business. General Liability Insurance is essential for any company since it provides protection against lawsuits filed by people outside your company alleging that it caused bodily injury or damage to reputation. Commercial Property Insurance is also important since it covers physical property such as office buildings or inventory due to fire or lightning strikes.

Business Interruption Insurance is also necessary since it replaces lost income if you need to close temporarily due to an insured disaster like theft or wind damage. Cyber Liability Insurance is also important since it protects against digital data breaches which can be costly for businesses if not properly insured against. Business Owners Policy (BOP) combines all these types of coverage into one package which can be more cost-effective than buying them separately. However it's important to consult with an experienced agent who can help determine which type of coverage best suits your needs based on factors such as size and type of company as well as industry sector. By understanding all these types of commercial coverage available you can ensure that your small business is properly protected in case something unexpected happens. Don't forget that financial lenders may require general liability before doing any kind of transaction with them so make sure you have all necessary coverages in place before starting any kind of activity.

Jenny Kizzia
Jenny Kizzia

Professional food ninja. Proud coffee expert. Friendly pop culture guru. Certified beer buff. Beer scholar.