Business insurance helps companies protect their financial assets, intellectual and physical property from a covered loss due to risks such as lawsuits, property damage, theft, vandalism, loss of income and employee injuries and illnesses. Standard coverages include Commercial Liability, Commercial Property, Commercial Auto and Workers’ Compensation. There is also a wide variety of other business insurance coverage available to address the more unique risks different businesses face.
Types of Business Insurance Policies
The coverages your business needs depend on things like the industry you’re in, its size, location, and number of employees. As your business grows, it’s likely your insurance needs will change. At a minimum, most businesses have liability, property and, if they have employees, Workers’ Compensation coverage.
Liability Policies
Liability policies help protect your business from the costs related to claims against your company of bodily injury and property damage. In
the event that a lawsuit is filed against your business, you may incur large legal fees – even if you haven’t done anything wrong. Without adequate liability insurance, you may have to pay the legal fees, settlement or judgment out-of-pocket. Most businesses need some form of liability insurance.
Employee Insurance Policies
Worker’s compensation provides employee benefits for work-related injuries and illnesses. It can also help cover the legal costs your business may face if a deceased workers’ family decides to sue you. In most states, having workers’ compensation is mandatory. States
also determine how much your policy will cost. Factors such as job risk, your business’s claims history and the size of your payroll factor into determining your cost.
Property Policies
Without adequate insurance, it could be difficult for a business to recover from significant property damage. Commercial property insurance helps businesses pay to repair or replace damaged property resulting from a fire, storm or other covered event. Without the right business property insurance, you might have to pay for damages out-of-pocket. Commercial business property insurance policies can help cover:
- Damage to the physical location of your business.
- Damaged tools, assets and documents.
- Damage caused by vandals.
There are even options you can add to your policy to help cover lost income. This can help you keep paying your fixed costs if your business cannot operate because of property damage.
Risk Management
For businesses that need help reducing risk exposures and increasing the safety of their operations, insurance companies with risk engineering expertise offer loss control services. Services can include performing workplace safety evaluations, designing mitigation plans, consulting, and providing a variety of safety training programs for your employees.