Most business insurance policies are a combination of coverages. One of the more common ways for a small businesses to get broad coverage is to purchase a business owners policy (BOP). A business owners policy combines property and liability risks into one easy to use business insurance policy.
The business owners policy will include business income insurance, also referred to as business interruption insurance. This coverage will help to compensate a business if there is a loss of income due to a disaster. Business income insurance can also help to cover a business if they are forced to use a temporary location while the business is being repaired.
If you’re looking to cover specific risks it’s always a good idea to add additional coverage to the BOP. If your company does deliveries or has company vehicles, you may want to look into commercial auto insurance. You may store customer data and have a necessity for cyber insurance. Another critical business insurance to consider is workers compensation, which is typically a requirement if you have at least one employee.
Types of business insurance coverages;
Errors and Omissions insurance (E&O), Professional Liability insurance
If you run a business that offers advice, makes recommendations, designs things, provides physical care, or represents other people, there is always an off chance you can be sued. Clients can claim that your company failed to perform properly which lead to an injury. Errors and omissions insurance can help to protect your business in situations like these. Your business insurance policy will help to pay for judgements which the insured is legally liable, up to the policy limits. It can also provide legal defense costs, even if there was no wrongdoing.
Employment Practices Liability Insurance
Your employment practices liability insurance will help to cover damages that the employer is legally liable. Things such as violating an employees civil rights. It can also help to cover defense costs which at times can be substantial even if there wasn’t any wrongdoing.
Directors and Officers Liability Insurance
Directors and officers liability insurance will help to protect directors and officers of corporations or non profit organizations if there happens to be a lawsuit claiming that they managed business without proper regard for the rights of others. This policy can help to pay for judgements which the insured party may be liable. It can also help to cover legal defense costs, even if there was no wrongdoing.
Key Employee Insurance
If a key employee becomes disabled or dies life and disability insurance can compensate your business. This form of business insurance is designed to help your company financially if you are to lose a key employee.
Umbrella Insurance Policies
An umbrella insurance policy will provide protection for your company above and beyond your other standard policy limits. Its good for a business that wants coverage for high loss risks. Your umbrella policy will provide protection above your standard limits on your general liability insurance and commercial auto insurance polices.
Standard Business Insurance Polices
The four types of business insurance below are typically what every business should protect themselves with;
Commercial Property Insurance
Commercial property insurance is designed to protect your business if the property used for the business is damaged as the result of a covered peril, such as theft or fire. Commercial property insurance or business property insurance covers not only the building the company operates out of, it can also cover the personal property inside of the structure. Items such as furniture, inventory, materials, machinery, computers and other electronics, may also be covered. Depending on the coverage you obtain, you may also be covered for equipment breakdown insurance, removal of debris, and some water damage.
Business Liability Insurance
Every business is at risk to be sued. There is always a chance you have a defective product, or an error in the services you provide. Some could claim your business is harmful to the environment or your company may have disregarded someones personal property. Business liability insurance can help to cover damages your business is held liable for. It can also help to cover attorney fees, medical bills if someone is hurt or injured on the business premises.
Commercial Auto Insurance
Business auto insurance also referred to as commercial auto insurance will provide coverage for vehicles owned by your company. Commercial auto insurance will pay costs for third party damages that result in bodily injury or property damage that may have been caused by your business. It will cover you up to the policy limits.
Workers Compensation Insurance
Most states will require your company to carry workers compensation insurance if you have at least one employee. Worker comp insurance can help to cover medical care expenses & replace lost income, if an employee becomes sick or injured.
Business Insurance Quote
Getting a business insurance quote is easy with Eugene C Yates Insurance Agency. Our agents have access to the best commercial insurance companies in the industry. This makes it simple for them to find you the best rates with the best coverage. They will help you shop around and find all of the business insurance discounts you may qualify for.
If you would like to get a free commercial insurance quote, please give us a call at 916 313 6100.