What You Need to Know About Business Insurance
Business insurance helps cover financial losses that may occur due to accidents, natural disasters and other unforeseen circumstances. It also helps cover legal fees and costs associated with being sued. Some policies are required by law or lease agreements, while others are optional.
NerdWallet’s top picks for business insurance companies include The Hartford, which provides coverage for most types of small businesses. Their general liability and property coverages are among the most popular with businesses.
Property Insurance
Generally speaking, business insurance provides financial assistance in the form of reimbursement or compensation to businesses that experience losses associated with property damage, lawsuits and other catastrophes. The basic concept is that in exchange for regular premium payments, the insurer will cover the business’s financial losses up to a specified limit.
The types of coverage can vary, but common options include commercial property insurance (which protects buildings and their contents), business interruption insurance (which helps cover lost income from a disaster-related shutdown) and product liability insurance (which covers damages stemming from defective products your company sells). Other more specialized policies that fall under the umbrella term of business insurance include surety bonds and fidelity bonds.
Another important consideration is workers’ compensation, which helps pay for medical expenses and lost wages if an employee is injured at work. Some states require certain businesses with employees to carry this type of insurance. Other types of business insurance can help cover other costs related to operating a business, such as crime and environmental coverage.
Liability Insurance
Business liability insurance protects a company against claims of negligence, property damage and more. It’s important for all businesses and is often required by law or at least recommended by a lender.
The right commercial insurance policy can help you cover the costs of accidents, lawsuits, property damage, theft and lost income. The cost of just one claim could bankrupt your business, so having the proper coverage is crucial.
Business owners can also purchase specialized policies such as professional liability insurance, which protects a firm that provides advice or services against negligence claims; data breach insurance, which covers the financial costs associated with protecting sensitive information; and fidelity bonds, which cover acts of fraud or embezzlement by employees. Some firms can even get combined property and liability insurance in a package known as a Business Owner’s Policy (BOP). Hiscox offers a range of business insurance policy options designed to meet the needs of small businesses. Their products are geared towards firms with 10 or less employees including consultants, recruiters, PR specialists and graphic designers.
Business Owner’s Policy (BOP)
A business owner’s policy (BOP) combines property and liability insurance in one convenient package. The property portion helps protect your commercial buildings and any movable equipment or inventory that you use for the operation of your business. The liability portion protects you against lawsuits that stem from the everyday operations of your business. You may also be able to add employment practices liability coverage, which protects your business against claims related to wrongful discipline or firing, sexual harassment, discrimination and more.
A BOP is typically reserved for smaller businesses in low-risk industries, such as retail stores, small restaurants and office-based businesses. It’s important to remember that a BOP does not replace other insurance policies you might need, such as workers’ compensation or commercial auto. If you’re interested in purchasing a BOP, talk to your WCF agent about your options. They’ll help you decide the right mix of coverage for your business. Click here to contact a WCF agent now.
Commercial Auto Insurance
A commercial auto policy can help protect a business from financial loss in case of an accident involving any vehicle owned or operated by the company. This type of insurance may also offer liability coverage in the event that an employee drives a vehicle on the job or you have passengers for work-related reasons (such as taxis and limousine services).
Even if you only have one car, you might still need a commercial car policy if you frequently deliver goods and services for your business, or even to take clients out on the town. This type of policy provides liability and physical damage protection for cars, trucks and vans used for business purposes, as well as specialized forms of coverage like commercial towing, hauling and storage.
It’s important to work with an independent agent to understand the unique aspects of your business and vehicles to ensure that you get optimal coverage at a competitive price. An experienced agent can also guide you through the entire claims process if necessary. assurance pro