When it comes to protecting your business, there are a variety of insurance policies available to cover different types of risks. Commercial property insurance will cover the cost of repairing or rebuilding your business's physical structures if it is damaged by fire, hail, theft, wind, smoke, or vandalism. This insurance generally covers buildings, not other types of “properties”, such as vehicles in a commercial fleet. General liability insurance, also known as business or commercial liability insurance, is essential coverage for a variety of claims, including bodily injury, property damage, personal or publicity injuries, medical payments, operations performed with products, and damage to facilities rented to you.
Nearly every company can benefit from liability protection, such as a business owners policy, management liability insurance, professional liability insurance, or product liability insurance. Businesses that tend to take higher risks than traditional liability insurance coverages can increase their coverage limits with loss reinsurance or supplemental insurance. If a disaster occurs (such as a fire, flood, theft, building collapse, or civil authority incident) and your business is forced to close for a period of time, business interruption insurance will help you cover lost income or operating expenses, such as mortgage or rent, loan payments, taxes and payroll. Alex Roje, partner at Lathrop GPM, said that every small business owner must evaluate their specific needs and responsibilities to develop the combination that best protects their business. B2C companies often use Errors & Omissions (E&O) coverage to protect against claims that their services caused customers financial hardship or bodily injury. This type of coverage is ideal for owners of small and medium-sized businesses, such as restaurants, retail stores and wholesalers.
You may need to do some research to find out what type of commercial insurance coverage you need, or simply ask a licensed insurance agent. Protect your business against losses caused by physical and technological disasters with policies such as business interruption insurance and cyber insurance. Any new or additional corporate liability insurance policy must contain exclusionary clauses to avoid duplication of coverage from competing insurance providers and thus minimize costs. You may need this type of auto insurance if you have vehicles that are used for commercial purposes. Dump trucks, cranes, snow plows, semi-trailers or commercial vehicles that exceed 10,000 pounds in weight or have business equipment installed (for example small businesses with commercial movable property) can take out inland marine insurance to protect their equipment, products or materials while in transit by truck or train.
BOE (Business Overhead Expense) insurance covers the cost of running your business (based on actual expenses including utility bills and employee salaries) if you become disabled and can no longer operate your business. Cyber insurance can include data breach insurance (which is good for helping small businesses recover) and cyber liability insurance (aimed at larger companies that need more coverage). Businesses that are in the lowest risk category may want to consider a Business Owners Policy (BOP), which combines general liability insurance and property insurance at a more cost-effective price. It is important for small business owners to understand the different types of commercial insurance available so they can make an informed decision about which policies are best suited for their needs. A licensed insurance agent can help you determine the right combination of policies for your business.