Operating a business is challenging, and you must stay ahead of your competitors with innovative products, excellent service and competitive pricing. Beyond that, you need protection for yourself and your staff, clients and customers through business insurance.
Do you have business insurance in place within your company? Knowing what your policy covers is important because, without that protection, you could risk financial loss.
Here are there several types of business insurance:
- Commercial Property
- Commercial Vehicle
- General Liability
- Professional Liability
- Business Interruption
- Home Business
- Cyber Security
What does business insurance cover? Let’s learn about each type of insurance coverage and what they entail.
1. Commercial Property Insurance
Most businesses operate at a physical location, and you need coverage for any associated losses that may occur. These can include theft, vandalism and fire, and offer protection for physical assets against loss and damage.
Coverage includes:
- Buildings
- Fencing
- Landscaping
- Signage
- Windows
- Leasehold improvements
- Equipment
- Computers and other electronics
- Inventory
- Employee and customer personal property
Are some add-ons required for comprehensive coverage? and it will depend on the specifics of the insurance and the provider you choose.
2. Commercial Vehicle Insurance
All vehicles must be insured when driven on public roads, but for a business, you need additional coverage for commercial vehicles. This commercial vehicle insurance is in place to protect company vehicles and those used for business purposes against any damage and loss. Cars, trucks, vans and even trailers are included, and coverage for any injuries the driver may sustain.
You are responsible for any employee’s negligence when operating a company vehicle, and regardless of whether you have only one business vehicle or an entire fleet, insurance coverage is vital.
3. General Liability Insurance
Liability is being responsible for damages to a third party, and in business, we have employees and customers in our physical locations who may sustain bodily injuries. General liability insurance protects you from being sued for injuries and property damage caused by your company. This could be a:
- Customer having a slip and fall accident on your property
- Employee hurt on the job
- Injury caused by a product you sell
- Maintenance worker injured while working at your building
- Vendor or delivery person
4. Professional Liability Insurance
Some businesses offer consulting, investing or designing services, and mistakes can happen. If a customer suffers a loss or property damage because of your work, they may sue for damages that can be financially devastating. Having professional liability insurance in place will protect you.
Some especially vulnerable professions include:
- Lawyers
- Architects
- Consultants
- Doctors
- Interior designers
- Real estate agents
- Therapists
This policy will cover you for inaccurate advice, negligence, misrepresentation, libel or public slander, covering legal defence costs, damages and loss of earnings.
5. Business Interruption Insurance
Sometimes, there is a situation where you can’t conduct work at your business location, and you may suffer a loss of earnings and not be able to cover your ongoing business expenses. Your ability to make sales can also be interrupted during repairs or shutdowns and could put your whole operation at risk.
For these potential pitfalls, you can purchase add-on insurance coverage for protection. There are generally three different types of coverage:
Gross Earnings
This policy will provide cashflow until any damaged or lost property and stock that is unsellable is repaired and replaced.
Profits Form
You will get benefits paid until your business can resume its regular operations before interruption levels, up to your policy limit.
Extra Expense
This is a payout of additional costs not covered out of normal operating expenses, like renting a temporary location to conduct business and renting specialized equipment. At the same time, yours is being repaired or replaced. This may also cover expenses for contractors working overtime to get you back up and running faster.
6. Home Business Insurance
More people choose to work from home in this digital landscape, and your existing home insurance will not adequately cover business assets. While a home insurance policy may cover business tools and equipment in your home, if you travel with your supplies, instruments and products, you need additional business coverage.
Liability is another issue you must consider when operating your business from home. Personal liability would not cover injuries or property damage for a home business, so you must purchase additional commercial liability insurance.
7. Cyber Insurance
Online businesses can be vulnerable to attack, which puts your data at risk of being corrupted or stolen. You can purchase cyber insurance to cover any:
- Data confidentiality breaches
- Technology disruptions
- Cyber extortion
This insurance covers the costs for security breach remediation, data and computer program restoration, legal and civil damages and forensic investigation.
This is the type of coverage you can get with business insurance. Every business is different, so you must tailor a comprehensive insurance plan to suit your needs and situation. Visit your local insurance provider for expert advice and coverage to protect your business and financial future.