Business Insurance Sacramento; What Is Business Insurance?

What is the purpose of business insurance?

Your company faces various risks daily. Business insurance is designed to help protect your company from risks that could become financially devastating to the business. Business insurance will help to protect your company from the disasters such as;

• Lawsuits
• Property damage
• Theft
• Vandalism
• Loss of income
• Employee injuries and illnesses

Types of business insurance

Business insurance comes in various forms and policy types. Some of these include;

• Commercial liability
• Commercial property
• Commercial auto
• Workers’ compensation
• Cyber insurance
• Home-based business insurance
• Product liability insurance
• Business interruption insurance
• Professional Liability / Errors and Omissions
• Unemployment Insurance
• Directors and Officers
• Umbrella Insurance
• Life Insurance / Key Person
• Health Insurance

Types of Business Insurance Policies

There are many different forms of business insurance policies. Not every company has the same risks and each industry will have unique risks as well. In addition, each business insurance company will have different rules and guidelines when it comes to their individual policies. 

When you’re looking into what type of business insurance you need to protect your company, you may want to know what coverages will be best suited for your business. It may help to consider;

• Industry
• Size
• Location
• Number of employees

Most companies figure they should carry general liability insurance. Due to it being able to protect the business in many ways. Workers compensation insurance is usually the only form of business insurance required by law. Although, if you have vehicles used for daily business you more than likely will need to carry commercial auto insurance. 

Liability polices for your business

Liability coverage can help to protect your company from;

• Bodily injury
• Property damage
• Advertising injury
• Errors or omissions

If you don’t carry this form of business insurance coverage you’re more than likely going to have to pay out of pocket for legal and medical costs. Some of the more common liability policies are;

• General liability insurance
• Professional liability insurance
• Commercial umbrella insurance
• Directors and officers insurance

Employee Insurance Policies for Your Business

As mentioned above, you have employees, your state may require you to carry workers comp insurance. This form of business insurance will protect you and your employees from work related injury and illness. Some of the factors that may determine the cost of workers compensation insurance are;

• Job risk
• Claims history
• Payroll size

Property Policies for Your Business

The Federal Emergency Management Agency reports that 40 – 60% of businesses never reopen after a natural disaster. Commercial property insurance will help protect your business property and the contents of it. 

Commercial property insurance will pay to replace or repair damaged property from the following perils;

• Fires
• Storms
• Theft
• Other covered events

Commercial property insurance will help pay for damage to the companies location / structure, tools, assets, furniture and documents. It may also cover lost income if you’re unable to reopen while repairs are being made.

Combine Different Business Insurance Coverages Under One Policy

Business insurance coverage doesn’t come in a one policy fits all companies form. Typically you will need to combine multiple policy types to get the coverage your business needs. One of the more popular policies among small business owners is a business owners policy or BOP for short. A BOP combines liability insurance, commercial property insurance and business interruption insurance into one easy to use policy. 

Small Business Insurance Definition

Small business insurance will help to protect your business property and income. It covers you against liability claims as well. 

Business Insurance Quote

At Eugene C Yates Insurance Agency we have a team of expert advisors. Our agents know all the ins and outs of business insurance coverage. In addition, they have access to the top business insurance companies in the industry and have working knowledge of all the business insurance discounts available. They will help guide you to find the best coverage at the best premium cost for your business.

To get a free business insurance quote, please give us a call today at 916 313 6100