Understanding Business Insurance
Business insurance comprises of a wide range of policy options created to protect a company from financial loss. Every business has a different set of risks, meaning the commercial insurance coverage needs to be tailored for a certain business. Many factors have to be considered such as the company size, number of workers, materials handled, and the number of business vehicles. All these will determine the coverage you require to mitigate risks and safeguard the financials of your company.
Below are some of the principal types of business insurance you may need:
Property insurance: Covers damage or loss to the business properties due to storms, fires and other causes.
General liability insurance: Will cover 3rd party liability claims when other people are injured.
Malpractice insurance: Will cover professionals against the loss that occurs as a result of wrongful acts, careless professional duty or service, or advice that can cause death or injuries.
Workers compensation: Covers your workers when they get injured or become ill while working.
Loss of income: Will cover business expenses like employee salaries/wages and rent if you can’t run the business.
Product liability insurance: For covering faulty products and illness, injury, death, or damage that may occur because of using a faulty product.
Commercial vehicle insurance: For covering company vehicles and the drivers from a collision, property damage, liability, personal injury, and comprehensive.
How it works
Since this insurance is a contract between your company and the insurer, the insurance company agrees to share the risks specified as long as the premium payments are made. If a loss occurs and it is covered, the insurer will cater for the financial losses incurred by the business up to the policy’s limit.
The business is supposed to file a claim at the time of the loss. For instance, if a fire destroys a part of the company premises, you will file a claim against your property insurance policy. The damage will be assessed by an adjuster, and then the claim can be processed. Your company will get the right compensation for the loss.
You can easily get these policies by shopping online or contacting the insurer of your choice. Consider working with an independent agent who will select an ideal insurer depending on your needs.