Important Types of Coverage for Business Owners

When a person runs a business, they must be prepared for every eventuality. A business insurance policy can protect a company, but many owners don’t know what type of coverage to buy. To start the process, consider these common types of business coverage before making a purchase decision.

General Liability

Regardless of the business type or size, general liability insurance is a sensible policy to buy. Liability insurance covers a third party’s damages, such as property loss or bodily injury. It can also cover legal fees linked to these claims.

Commercial Vehicle Insurance

If a company operates and owns vehicles, it’s important to cover them, just as with personal cars. Commercial auto coverage is an option for employees who use their personal vehicles for work, such as pizza delivery drivers and sales staff.

Property Insurance

From a small office to a large factory, every business property should be covered by a comprehensive policy. Depending on the area’s specific risks, property coverage can protect real estate, industrial equipment and inventory damaged by theft, vandalism, fire or water. Consult a local agent for coverage that fits the business’ needs, location and budget.

Worker’s Compensation

Even if a business doesn’t require physical labor, there’s always a chance of an on-the-job injury. If such an accident occurs, the business can be held liable for the worker’s lost wages and medical bills. Worker’s compensation can be added to a business insurance policy to cover these claims, and it can also protect the company from lawsuits by injured employees.

Professional Liability

Does the business offer consulting services or provide professional advice and assistance? If it does, the owner should consider buying professional liability insurance. This type of coverage can be bought as a standalone policy, or it can be added to a BOP (business owner’s policy).

Life Insurance

Entrepreneurs spend a great deal of their own money and time to start businesses. In the case of a new company, it could take a while to see a return on the investment. Life insurance is a form of personal insurance that protects the business owner’s family in the event of a premature death.

The easiest way to determine what kind of business insurance to purchase is to consult a local insurance agent, who can provide a high level of protection at a great value. To schedule an appointment or receive a quote, call a local insurance agency or visit their website.


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