Business insurance is a type of insurance designed specifically for owners as a way to protect their assets. The assets of a company can range from the products that it makes to the equipment, and tools used daily. As you look at business, or commercial, insurance, you need to consider how your business operates what type of coverage is best for you. This may include coverage that protects against damage caused by natural disasters and environmental factors, or a workers’ compensation policy for your employees. Once you take a better look at the process and what each entail, you can easily decide what you need.
General Liability
One type of coverage that is available for business owners is general liability insurance. This is especially important if you operate out of a building that the public or clients can visit. It offers coverage against liability claims that occur when someone becomes injured on your property. Liability coverage also covers claims when someone experiences property damage and in cases involving libel or slander.
Commercial Property
Business owners can opt for commercial property coverage too, which covers any personal or professional property. Take for example, a late-night break-in where thieves stole some of the important equipment necessary for daily operations. You can file a claim to get reimbursed based on the value of those items.
Workers’ Compensation
Most states require that business owners have coverage for workers’ compensation too. When an employee becomes injured during work hours, your coverage will kick in and pay for the medical bills and lost wages of that worker. If you do not have workers’ compensation, that employee can sue you or your company for those losses.
Commercial Auto Coverage
If you use one or more vehicles for purposes related to your company, you also need commercial auto insurance. This includes vehicles that you use to deliver products to clients and the vehicles that you use to transport employees or clients. Commercial auto policies payout after accidents and are available for vehicles that you own outright and those you have loans on or lease.
Coverage vs. Deductible
Two of the top terms you need to now are coverage and deductible. Coverage refers to how much your insurer will pay out after you file a claim. Insurers can set this limit based on how much risk your company presents or how much you pay every year. Most plans include different coverage limits based on the type of claims you can file. For example, you might get more when an employee totals a work vehicle than you would if a storm broke a window in your office.
The deductible explains how much you need to pay to file a claim. If you have a $1,000 deductible towards property damage and a storm causes $5,000 worth of damage to the building, the insurer will apply your $1,000 deductible to the cost and pay the remaining $4,000. No matter what type of company you own, you must have insurance. Different types of coverage will protect against everything that the future holds.
