Businesses are exposed to many different types of risks. A single, unfortunate incident or lawsuit can cause your business to crash before it can even get off the ground. Luckily, there is a wide range of business insurance policies that can protect you, your company, and your financial future.
Here are five basic coverage options that you should consider to safeguard your new business from such perils:
1. Business owner's policy (BOP)
BOP is a two-in-one package that combines general (business) liability insurance and business property insurance. It can be customized to suit your specific business needs. The policy generally shields your firm against natural disasters, fires, and theft as well as bodily injuries and damage to client property. Product-related claims and loss of business income may also be included in the coverage.
2. Professional liability insurance
Professional liability insurance provides coverage for you and your company if you have committed a mistake while offering professional services. The policy reimburses the legal costs arising from client claims of malpractice, negligence, errors, omissions, and others. In fact, there is a type of professional liability insurance called errors and omissions (E & O) insurance. This is especially beneficial if your business is in any of the following fields: legal, medical, consultancy, accounting, real estate, insurance, engineering, and architecture. However, such a policy typically would not cover dangers such as cyber liability, defamation, and bodily injuries, so you likely need separate coverage for these.
3. Commercial vehicle/auto insurance
If your business owns a fleet of vehicles, or even just one, it is essential that you insure the vehicle(s) to avoid having to dip into your own pockets if and when disaster strikes. Commercial auto insurance typically pays for damage to property and bodily injury after a vehicular accident, vandalism, damage caused by disasters, or theft. The policy can cover all vehicles used for business purposes such as cars, vans, food trucks, pickup trucks, and service utility trucks.
4. Commercial property insurance
Also referred to as business property insurance, it covers damage or loss to your business office/building and its contents such as equipment, supplies, tools, company records, and even electronic data. Covered dangers may range from natural disasters and explosions to burst pipes and burglary. Since insurance needs vary from business to business, you may include additional coverage for more protection.
5. Workers’ compensation insurance
Operating a business is no walk in the park, especially if you employ workers. To avoid fines and lawsuits, you need to carry workers’ compensation insurance, also called workers' comp. Such a policy is intended to reimburse medical fees related to workplace illnesses or injury. Remember, running your company without one could lead to serious financial consequences.
To know more about the type of protection your business needs, contact us today.