5 Types of Business Insurance and The reason why you Need Them


No matter what size or nature of the business, one thing that remains the same is the requirement for business insurance. There are many different aspects of your business that you will want to take into consideration when looking for new company insurance - or reviewing your existing insurance coverage. Since look at is different, each one may have different insurance requirements. For example, a company that produces physical goods might need different insurance than a company which offers services. In both scenario, there are some similarities, and listed below are a few types of insurance that businesses should consider.

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Workers' Compensation Insurance - for the employees

Workers' Comp insurance policies are required by law in nearly every state. It can provide coverage for medical costs along with a portion of lost wages for an employee who becomes injured or ill practical. Typically, this type of insurance only covers injuries or illness that occur practical site - as an example, if an employee slips and falls over a wet floor.

Because the laws regarding Workers' Comp can be different depending on where your company is located, it's important to readily insurance professional to make sure you're having the coverage that's required, in addition to what you need for your particular business.

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General Insurance

General Liability Insurance is made to protect you and your business from a variety of claims, including accidents, injuries, or claims of negligence. This type of insurance can help pay for things such as property damage, medical expenses, libel, slander, legal costs, and faulty products. Nobody expects to get sued, however the reality is that it's always possible. You don't want to leave your business open to these types of situations, as well as the broader the protection, the higher.

Professional Liability Insurance - "Errors and Omissions" coverage

Professional Insurance can also be known as "Errors and Omissions Insurance," or "Malpractice Insurance." It protects from lawsuits that allege negligence in providing services, providing shoddy work, or making mistakes or omissions. A renters insurance policy is particularly important when you have a service-based business, but could also be necessary for other sorts of businesses as well. Mistakes happen - so adequate Professional Liability Insurance can be helpful, even if you don't think you'll need it.

Property Insurance

The phrase "property" is broad, and can mean different things to different types of businesses. That's why it's important to make sure you carry adequate Commercial Property Insurance. Without type of insurance, most smaller businesses wouldn't be able to replace their equipment should something happen to cause damage or destruction. Property included in this type of insurance can include buildings, computers, inventory, equipment and supplies. There are two types of Property Insurance: "all-risk" policies cover just about everything, and is a good way to avoid duplication or overlap of coverage, in addition to gaps in trying to cover your liabilities. "Peril-specific" policies, or "named-peril" coverage applies only to particular perils which can be specifically named within the policy. They're usually needed when there is a high risk in a very particular area.

Life Insurance / Key Executive Insurance - protection and benefit

Offering insurance coverage for employees can be a valuable benefit when attemping to attract high-quality employees. A business can even offer additional coverage for executives. These employees are deemed to be essential to the running and success of the business, and may sometimes require additional insurance, far beyond what the normal employee benefits provide. This is often another benefit in attracting top talent.

A business can also offer special "Key Person" policies for employees without whom the business could not function. Key Person Insurance protects against a key employee's unexpected death - quite often the benefit amount equals the expected revenue loss and charges required to find and train an appropriate replacement. The business pays the premiums, and also the insurance is considered a small business asset.