A basic policy might not provide enough coverage for your organization, so it’s a good idea to learn about other available options

Key takeaways:

  • Basic business insurance typically covers damage and liability
  • Some companies need more coverage to protect their assets
  • Specialty insurance covers unique situations
  • It’s best to tailor your insurance policy to meet your specific needs 

Every business is different, and therefore has different insurance needs. A bike rental shop won’t have the same risks as a hotel or restaurant, so a one-size-fits-all commercial insurance policy doesn’t make much sense for any of these companies. 

Figuring out your organization’s exact insurance requirements is a significant part of the puzzle because it gives you an idea of where to take the conversation when talking to your insurance agent. Your geographical location can also add risks you’ll need to consider when researching policies and add-ons. 

The goal is to protect your small business as much as possible because an unforeseen event that isn’t covered by insurance could be enough to sink you. Here’s a look at the various business insurance types available to your company.

Basic business insurance

A typical commercial insurance policy offers property and general liability coverage. Every business has different needs in these regards, but basic coverage is essential for companies of all sizes.

Commercial property insurance usually covers the building in addition to contents such as equipment, tools, inventory, and personal property. It acts as a safeguard in case the building is significantly damaged by a fire or other disaster that could be enough to ruin the company financially. 

General liability insurance protects the business from claims resulting from bodily injury, medical payments, court fees, and third-party property damage. If you have staff or customers on-site, general liability is essential because of the protection it provides against lawsuits and other claims.

Your commercial property and general liability policies might seem like plenty of coverage, but many other unforeseen issues could arise as you run your business. Learning about additional insurance options is vital as you create the ideal plan to meet your needs. 

Other standard business insurance options

Your basic commercial insurance policy is unlikely to cut it on its own, so looking into a few common add-ons is worth your time. These policies offer additional coverage that could go a long way toward protecting your business. The result is more confidence that your company can survive in the face of adversity. 

Workers’ compensation is one of the first business insurance types to examine. This policy covers your employees’ medical costs and some of their lost wages if they suffer an injury or become ill while on the job. Employees who accept workers’ compensation benefits also lose their ability to sue the company, which can save you money in the long run. 

Business interruption insurance is another common business insurance add-on you’ll probably want to consider. These policies protect you when an issue forces your company to cease operations temporarily. The policy will reimburse you for things like lost income or operating expenses, helping you keep your head above water during tough times. 

Specialty insurance policies 

Depending on your company’s needs, you might also consider some less common business insurance types. These policies cover specific items or situations your company could find itself in, some of which can be challenging to predict. Your specialty insurance requirements depend on your company and the goods or services you sell.

Commercial auto insurance is necessary if you have a company fleet or if employees use their personal vehicles for business reasons. It protects against vehicle damage and liability if an employee is injured or hurts someone else while driving a company vehicle, and provides third-party property damage coverage, as well.

Owning a business in Florida means investing in specialty flood and hurricane insurance, especially if you operate in coastal areas. Your basic insurance might not cover floods or hurricane-related damages, so you’ll want to consider that addition to your policy.

Cyber liability insurance is becoming increasingly necessary for businesses all over the country. These policies protect your company if you’re victimized by cybercrime, including handling fines and lawsuits and dealing with the expense of informing your customers of a breach. Cyber liability insurance might be a good idea if you store any customer information in a computer system.

Commercial umbrella insurance covers the additional cost of liability that exceeds your primary plan’s limits. So if a situation arises where your company is liable for a significant accident with considerable expense, your umbrella policy will kick in once your basic policy’s limits are exhausted.

Most companies don’t need it, but kidnap and ransom insurance is also available. These policies might not be necessary if you conduct most of your business domestically, but they become increasingly vital if workers travel to more dangerous locations overseas. 

Product liability insurance covers your company if a product you sell causes injury to a third party or damages their property. It can also protect the company if you face a product-related lawsuit. Your basic policy probably won’t include product liability insurance, so you’ll want to add it if you feel it’s necessary for your firm. 

Errors and omissions insurance protects a company against errors in service, misrepresentation, inaccurate advice, undelivered work, and negligence lawsuits. It typically covers legal fees and court judgments when the business is found to be negligent in a situation that damages property, injures someone, or leaves them in a challenging financial situation. 

Knowing the type of specialty insurance coverage your business needs is a crucial first step because it gives you an idea of what you should bring up when speaking with an insurance agent. The result is a comprehensive policy that protects your organization’s assets as much as possible.

Putting your policy together

No two companies are the same, so you’ll want to develop a custom commercial insurance solution that fits your unique needs. The process starts with figuring out how and why you could experience damage and asking the question: what type of business insurance do I need?

Avante Insurance offers commercial insurance solutions in South Florida. We can help you put the ideal insurance package together to protect your business from the unforeseen. Contact Avante Insurance today to learn more about our business insurance solutions.



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