Business owners have a lot of responsibilities on their plate.
Handling day-to-day operations of a business alone can be consuming, not to mention the preparation required for the day-to-day to function properly. Ensuring your business is properly covered by the right insurance plan can be another daunting responsibility, but it doesn’t have to be.
Here are 6 types of insurance to consider when buying a business or commercial insurance policy.
Business Owner’s Policy
A Business Owner’s Policy (BOP) is a popular choice for small businesses. BOP’s are package policies that often include all major property and liability risks. Typically a business owner can alter what is covered in a BOP to meet their company’s specific needs. This type of bundle can sometimes save the business owner money, but it’s always best to consider all options before choosing a one-size-fits-all plan.
Property Insurance protects your businesses’ physical property in the case of a fire, flood, vandalism, theft, etc. These policies usually cover the building, inventory, equipment, furnishings, and any other property that belongs to the business. Another type of property insurance to consider is Business Interruption Coverage, which comes into play should the business become inoperable for some unforeseen reason.
There are 3 different types of liability coverage that business owners should consider. General Liability Insurance is coverage that protects from a variety of claims including bodily injury, property damage, personal injury and others that can arise from business operations. Product Liability Insurance guards against claims related to the manufacture or sale of a product. And lastly, Professional Liability Insurance, otherwise known as Errors and Omissions Insurance (E&O) covers a business in the event a client is harmed by a service or advice provided.
If an employee is injured on the job, Workers Compensation
Insurance provides wage replacement and medical benefits, as well as protection from lawsuits. Workers Compensation is required in all states if the business has W2 employees.
Commercial Auto Insurance
When your business involves transportation, whether with company owned vehicles or employee vehicles, Commercial Auto Insurance will provide coverage in the case of a collision, theft, or other damage to the vehicle. This does not include injury protection for those involved, but that is included in workers compensation coverage.
Data Breach Insurance
Another way to protect a business from unfortunate loss is with Data Breach Insurance. If a business stores sensitive or confidential information about their employees or clients, Data Breach Insurance will provide protection should the information somehow be stolen or released.
Keep in mind that many insurance companies offer bundle packages to simplify the purchasing process. However, it’s important to carefully consider your small business’ specific risks and purchase coverage accordingly. Every company is different and requires different types and amounts of coverage.
JR Carnahan offers all types of Business and Commercial Insurance. If you are a business owner and have questions regarding purchasing a new business insurance policy or updating a current one, contact us today! We would love to assist you in finding the best insurance solution for your business!