Types of Business Insurance Coverage

Operating a business requires a number of financial safety nets to ensure that it remains going strong. Why? For one, a proper insurance plan can protect a business’s cash flow in the event that the business experiences an unexpected loss.

Some of the many insurance plans available to business owners include –

General Liability Insurance

This is by far one of the most common types of insurance policies that businesses sign up for and it is easy to see why. This particular policy ensures protection against damages and ensures defense in the event that any of the business’s employees, services, or products damages any property or causes bodily harm to a third party.

Property Insurance

This type of policy provides insurance against damage or loss of a business as well as its contents. The policy also protects the properties of other parties that may have been affected when the loss in question occurs. However, property insurance is specified according to certain risks. For instance, a business owner who is insured against fire damage cannot collect insurance in case his property is damaged during a natural disaster such as a flood or hurricane.

Worker’s Compensations

Business owners protect their employees against any financial loss that they might incur due to injuries incurred while on the job. The policy also binds employees from suing their employers for the said injuries.

Commercial Auto Insurance

This policy does not cover an employee’s personal vehicle. In other words, it only covers vehicles that are owned by the business and are designed to insure them for damage or collisions. In general, Commercial Auto Insurance covers vehicles that carry a business’s products, equipment or employees. However, businesses can also opt for non-owned auto liability in case most of their employees drive their own car to work but haven’t insured it or have inadequate coverage.

Professional Liability

This type of insurance policy offers coverage for damages or defense in case a business renders its professional services improperly. It is important for business owners to note that this coverage is not covered in general liability insurance.

Business Interruption Insurance

This is a form of business insurance that replaces lost income in case an event disrupts a business’s operations such as a natural disaster or fire.

This type of insurance can come in handy in acquiring insurance against loss of cash flow or damage that might be caused in case a business’s operations are interrupted or halted for a specific amount of time.

Health Insurance

Businesses that are competitive often attract qualified applicants by offering them free health insurance as part of their payment packages. Health insurance offers a considerable amount of benefits for both employees and employers alike.

Data Breach Insurance

Most online businesses, especially those that specialize in ecommerce, often store personal information from clients in order to render services. Of course, this means that they are also responsible for ensuring the safety and confidentiality of that information. However, security breaches do happen nonetheless. A Data Breach insurance policy provides a business protection against the losses that are incurred as a result.

Businesses cannot afford to remain unprotected in this day and age. It’s the law. Insurance is also a legal requirement for your staff. A high level of insurance cover also ensures that your business is a respectable establishment; one that takes the safety of its employees and the credibility of its operations very seriously. The right insurance policies will ensure that your business remains protected.

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