Business survival depends on many factors that begin with setting up financial protection from disasters. Every business has certain risk factors that can manifest into lawsuits, which is why it’s critical to carry certain types of commercial coverage.
Different Types of Business Insurance
Some entrepreneurs may find researching the different types of business insurance to be overwhelming. Yet most businesses simplify insurance plans by starting with a standard business insurance plan and adding extensions or bundling policies together for a discount. Here are some of essential types of business insurance plans:
- General Liability – This core coverage pays for bodily injury and property damage that your business might cause to visitors of your establishment. It also pays for various types of lawsuits.
- Commercial Auto – You’ll need this plan if your company owns vehicles used for business purposes. Drivers cannot use their own personal coverage to pay for accidents that happen on the job.
- Workers’ Comp – Most businesses that employ workers must purchase this insurance to meet state law requirements. It pays for disasters that happen to employees while working. It covers their hospital bills and a percentage of income loss resulting from the accident or illness.
- Professional Liability – Consultants and other business leaders and advisors can shield themselves from client lawsuits resulting from mistakes or bad advice. This type of insurance includes errors and omissions coverage.
- Commercial Property – If you own, lease, or rent commercial property, you can benefit from this coverage that pays for structural repairs and damage to your equipment.
- Business Interruption – When a disruption temporarily suspends your business, this coverage can pay for lost revenue.
- Product Liability – Faulty products that cause harm to consumers can result in lawsuits, which this coverage pays for.
Try not to rush into signing up with the first insurer you discover from online search results. Remember that each insurance agency has its own criteria for setting prices and each one designs its own policies. Your goal is to find a policy that will help lower costs while providing the most comprehensive protection.
Before you decide on business insurance, take time to evaluate the risks associated with your operation. Ask yourself what you can do to lower these risks, such as purchasing safety gear and security technology. It helps to discuss your operation with an experienced insurance expert in your field.
Need Professional Help?
An insurance expert who understands your industry can help you customize the right coverage for your enterprise. Simply discuss your business activities so that the agent can share with you the various available coverage options. Some insurers offer discounts for bundling different policies together.
Reassess Your Insurance Needs Regularly
Every business evolves over time due to changing market conditions. That means your business risks may change over time as well. It’s advantageous to periodically review your business insurance policy and make adjustments if necessary. If you need to trim insurance costs, think about raising your deductible, which will lower your monthly premiums.
Starting a new business can be a monumental turning point in your life, but make sure you have set up a good financial safety net with the right insurance coverage. To learn more about our insurance offerings, call our agents at Pittman Insurance Group, LLC. We can answer your questions about various types of business insurance and let you know what to expect when you file a claim. Call and schedule a consultation today!