Learn the right types of business insurance protection you need to reduce risks
When business owners are first starting out, business insurance is likely one of the last items on their to-do lists. The reality is that business insurance should be one of the first things entrepreneurs purchase to mitigate a variety of risks.
Is your business prepared to recover from a disaster? The Insurance Institute for Business & Home Safety reports that 25% of businesses that experience a disaster never reopen. Make sure that you’re prepared with the proper insurance should the unthinkable happen.
What Types of Insurance Does Your Business Need?
This type of insurance covers loss and damage to either owned or leased company property from a variety of events including vandalism, fire or wind damage. You can choose between an “all risks” policy, which covers loss from a variety of sources, or a “named peril” policy, which identifies the types of covered hazards.
This business insurance coverage helps to protect your company if someone is injured while at your business location or from injuries or damage occurring from the use of your products or services. This insurance can help shield your business from certain situations that could be classified as negligence. Most general liability policies
cover financial costs such as medical bills, as well as legal expenses that could be accrued if you are sued.
Professional liability insurance, also known as errors and omissions insurance, helps protect your company from claims of malpractice or negligence that may have damaged a client or other third party. Some organizations such as the American Medical Association require professionals to carry professional liability insurance policies.
- Business Interruption Insurance
This type of policy protects your business from unexpected events, such as natural disasters that could cause your business to have to relocate or close temporarily. This policy can help your business maintain cash flow while equipment can be repaired or replaced and facilities can be repaired. Business interruption insurance typically provides reimbursement for up to 1 year of lost revenue.
A business vehicle insurance policy protects your company from damage to a vehicle that either you or one of your employees uses for business purposes. Business vehicle insurance also provides coverage if a third party claims property damage or bodily injury in an auto accident.
This type of insurance, often called a BOP, refers to multiple types of business insurance rolled into one policy. This can often result in lower premiums compared to purchasing each type of insurance individually.
An umbrella insurance policy can fill gaps not directly covered by other insurance policies. For example, your general liability insurance policy may have certain limits, where an umbrella liability policy could cover any excess damages.
Make sure you have the right insurance for your business
If you’re still unclear about what types of commercial insurance you may need for your growing business, don’t hesitate to contact Avante Insurance today at 305-648-7070.