9 Types of Business Insurance You Need to Protect Your Business
Business insurance, just like any insurance, comes in a variety of shapes and sizes. It is easy to understand why entrepreneurs and business owners find themselves asking which insurance they need.
Here’s a quick look at the different kinds of insurance policies commonly offered to business owners so they are ready when it comes time to speak with an insurance agent.
Commercial Liability Insurance
Also called general liability insurance, commercial liability insurance protects business owners from claims made against a business by third parties (basically anybody that comes in contact with a company’s employees).
Such a policy covers claims due to accidents or injuries occurring to third parties on the company’s premises or for which the company is legally responsible. The coverage handles not only injuries and damages to the third party, but also company property and product damage.
Liability insurance comes in handy when, say, a customer slips and falls because someone spilled their grande mochachino and didn’t bother to wipe it up. The policy would cover the injured party’s medical expenses and any wages lost due to injuries.
Professional liability insurance
Also known malpractice insurance or as error and omissions (E&O) insurance, this insurance protects a business against claims of negligence. A malpractice or E&O policy covers court costs and any settlements stemming from such a claim.
Accountants, lawyers, and physicians often take out malpractice insurance due to the delicate nature of their work.
Commercial Auto Insurance
This covers any work-related accidents involving vehicle(s), whether they are cars, vans, trucks or trailers. If using a personal vehicle for business, personal insurance should be fine. However, if using personal vehicle to deliver goods or services for a fee, personal insurance may not be sufficient.
While liability insurance covers other peoples’ property, property insurance protects yours as well, whether it is leased or owned. This includes equipment, signage, inventory, commercial buildings and most other business property in case of a fire, theft, or storm.
Something to note for Oklahomans: be sure to talk with an insurance provider. Property insurance may cover storms, but floods or earthquakes may not be covered.
If operating a business out of a house, a regular homeowner’s insurance policy will likely not cover equipment and inventory loss. However, home-based business insurance will.
In today’s litigious society, when manufacturing a product, product liability insurance is necessary. This is protection in the event becoming tangled in a lawsuit due to a product. It is important to have protection. As they say, if you make something foolproof, there will always be a fool to “disprove” it.
Also called a fidelity bond, this type of insurance protects businesses from employee dishonesty — namely theft. This could be theft of money, property or acts of fraud.
For example, fidelity insurance policy protects a company in the case of embezzlement. It would reimburse the business owner for any losses and damages incurred.
Business Interruption Insurance
This type of insurance protects the business from any loss or damage should the business cease operations. In order to collect on this policy, the business must show revenue lost due to cessation of operations.
Such a policy reimburses the company for the losses and helps the business get back on its feet. This insurance may actually be included in a property insurance policy, so be sure to check with an insurance provider.
This type of insurance covers expenses such as employee medical bills and lost wages in the case of workplace injury or illness. This includes disability and death benefits.
Even simple falls or innocuous, work-related injuries such as carpal tunnel can result in expensive medical bills. Furthermore, it’s wise to buy a workers’ compensation policy to protect you and your employees.
Hopefully, you found these this list of different types of business insurance helpful and maybe now have an idea of what you might need. If you have any questions concerning business insurance, need more clarification or want to discuss taking out a policy for your organization, please give us at Omega Insurance a call at 405-769-6701.