Curious about business insurance? Then you’ve come to the right place! Here you’ll be able to grasp the main gist of what business insurance is, how it works, its benefits and so much more. So to know all about it, feel free to keep reading!
One of the most efficient and effective ways to ensure safety for your business, employees and customers is by getting business insurance. Most companies do this to safeguard their business from legal, financial, and actual damages.
So if you’re considering getting business insurance, why not start by knowing more about it? Check out the list of things every business owner should know about insurance and why it’s essential!
What Is The Purpose Of Business Insurance?
In general, insurance serves as a safety net that will catch you when dangers occur. So it’s basically risk prevention. The purpose of business insurance is to protect your company against a variety of risks, including:
- Financial losses
- Property damage
- Employee injury/illness
- Customer injury
All these risks can be crucial to any kind of business, especially small or starting companies. This can either cause major setbacks or even your business’s demise. Hence, you should strongly consider being protected from these threats.
What Are The 4 Main Kinds Of Business Insurance?
There are 4 sectors in business insurance to greatly consider: Liability, Property, Employee Compensation and Vehicular insurance. Each of these insurance policies plays a huge role in keeping your company safe and protected from all aspects of risk.
To better understand what these policies are meant for, here is a rundown of each one:
This insurance policy has two branches such as the General and the Professional. This covers damages and injuries that occurred within your facility or during a service. This is one of the most sought insurance among the rest and to better understand the two branches, here they are apart:
General Liability – is made to protect your company in court when lawsuits are filed over incidents like an accident that occurs to a non-personnel within your premises.
Professional Liability – is made to protect your business from any errors and negligence done by your company during a service. This can range from damages to unfit products and so on.
This insurance policy is mainly for business owners with physical stores, storage or offices, and anything that involves land. This insurance was made to protect property, more specifically land that’s used for business.
With the help of this insurance coverage, you may protect your business property against accidents, catastrophes, and other natural calamities. Basically, any damages brought on by typhoons, fires, floods, and other events, depending on what your insurance covers.
This will cover the expense of any harm brought on by any of the risks mentioned. So money to repair any of the damages can be the least of your worries.
Employee Compensation Insurance
Based on its title, you might get an idea of what this insurance policy covers -YOUR EMPLOYEES. This coverage is to make sure your staff is safe and covered when dangers arise. This will cover medical bills, hospital bills, paid leaves and so on.
The only way an employee won’t be eligible for coverage is when the injury is caused while violating company rules or if the injury was sustained outside the company’s premises. This policy calls also protects your business from lawsuits against your employees.
Last but not least is an insurance policy for your company vehicles. This will shoulder the costs of any damages caused by accidents during services. You can use the insurance on your vehicle or on the other party involved in the accident, depending on the situation.
Can I Use Different Insurances Under One Policy?
Yes, you can. For as long as all the policies are provided by the same carrier. But a smart and efficient option you can go for is the BOP, short for Business Owner’s Policy.
This insurance coverage contains various policies within it such as general liability insurance, business interruption insurance and commercial property insurance.
The best alternative is to go with BOP since it will be simpler to administer and is the ideal package for small- to medium-sized businesses.