Different types of event risks have proven that commercial insurance is vital for business success, whether you’re an SMB or a large corporation. However, the types of policies required can vary by many factors, including your specialty and industry-specific risks. This is why it’s important to evaluate your insurance coverage needs with the help of an expert, such as your insurance agent.
Here are 5 essential types of business insurance to your business should have to remain financially secure:
General Liability Insurance
If there is a chance that a customer could get injured on your business property, you should get general liability insurance. Also, the policy would protect you as a contractor if one of your employees accidentally damaged a client’s property, such as roofing. Any customer or bystander that incurs such losses/damage could sue your company for compensation. In that case, your GL policy would protect you by covering expenses associated with the incident, including:
- Legal defense fees
- Bodily injury/property damage settlements or judgments
- Medical expenses for bodily injury
- GL insurance can also cover defamation claims against your company (libel or slander)
Product Liability Insurance
When the product hurts a product’s user, buyer, or bystander, they can sue the liable party for compensation. The law allows the victim to pursue any party involved in the product’s supply chain. As such, you can be held liable for the bodily harm caused by a defective product if you’re its manufacturer, distributor, retailer, or wholesaler. Product liability insurance can cover any such claims, protecting your company against financial loss.
Professional Liability Insurance
Consider getting professional liability insurance if you’re a service provider, such as an accountant or real estate agent. Also known as errors and omissions insurance, this policy can protect you against costly claims raised by your unsatisfied clients about services you delivered. Covered customer complaints can include:
- Substandard service
In some states, certain professionals must have professional liability insurance. A good example is doctors who are required to have a medical malpractice cover.
Commercial Property Insurance
To protect your physical business assets, you should consider having commercial property insurance. The policy would pay to replace or repair lost or damaged properties in covered events like:
- Civil disobedience
You can cover various items and different types of assets with business property insurance, including:
- Your business building
- Office equipment like computers
- Official records
- Lost income
- Business interruption expenses
When buying commercial property insurance, it’s important that you thoroughly review the fine print to understand all covered perils and exclusions. Most standard policies cover multiple general issues like theft and damage due to fire or storm, but they’ll exclude specific risks. As such, you may need a special insurance endorsement for certain hazards or incidents like crime, flood, or business interruption. To avoid property insurance coverage gaps, consult your agent about covering hazards that are unique to your business type or location.
Most state laws require employers to have workers’ compensation insurance programs. These policies pay financial benefits to workers that fall ill or are injured at work. Under workers’ comp systems, employees can be compensated for medical expenses, pain and suffering, lost wages, and other losses/damage associated with sickness, physical injuries, or disabilities sustained on the job. This type of insurance protects employers since they can’t be sued by employees that accept compensation for employment-related injuries.
These commercial insurance policies provide an appreciable level of protection against unforeseeable financial loss. For advice on the specific types of small business insurance, you should consider getting, contact our experts today at Pittman Insurance Group. We can expertly evaluate and meet your unique coverage needs.