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Managing a business is not an easy task as you assume the responsibility for the welfare of a wide range of people from customers to employees. There are always unexpected setbacks and expenses that can affect your business operations. So, it is important to have business insurance as it helps to minimize the financial impact of a potential mishap which could easily wipe out your assets and put you out of business. In addition to protecting yourself, it is also important to have business insurance to protect your employees and other stakeholders.
There are many different types of business insurance to cover a wide range of industry-specific exposures. No two businesses are the same and each business has its own unique set of risks that will require specific insurance solutions. Businesses in the same industry also may need different coverages. So, you should take time and do a business insurance checkup to make sure the unexpected does not immobilize your business.
Some basic types of business insurance that are essential to your business operations include:
Business Property Insurance
A business property insurance is a must whether your business owns, rents or leases its space. It not only protects your place of business but also your contents including office furniture, signage, equipment, computers, your business inventory and other items that are essential for your business operations.
Many business property insurance policies also provide for expenses to protect your business from further damage after a covered loss like a fire (it includes such things as debris removal). It can also provide the money needed to keep operating your business until the damage from the loss is repaired.
However mass destruction events such as earthquakes and floods are not generally covered under a standard business insurance policy. You should check with your insurer to price a separate policy if your area is prone to these issues.
Business Liability Insurance
It is also known as General Liability Insurance or Commercial General Liability Insurance. It is an essential coverage for businesses and is often required to sign leases and client contracts.
As a business owner, you can be sued by a third party for damages resulting from on-site accidents as well as any injuries or damages suffered as a result of using your goods, products, or services sold on and off your premises. It will also cover the cost of your defense as your business can be sued even if you did nothing wrong. It will also pay for medical fees if a patron is injured on your business premises.
Broad Range of General Liability Protection:
- Bodily Injury, including the cost of care, the restitution for any death that results from injury and the loss of service.
- Third party property damage coverage (e.g. damage to customer property)
- Products-Completed Operations provides liability protection damages (the legal expenses to defend your business) if an injury resulted from something your company made or services your company provided.
- Products liability: A more specialized liability insurance which protects your company against lawsuits from product-related accidents or injury ( e.g. food poisoning)
- Personal and Advertising injury(e.g. slander, libel, copyright infringement)
- Contractual Liability: extends to any liability that you may assume by entering into a variety of contracts.
- Other Coverage includes Borrowed Equipment, Reasonable Use of Force, Non-owned Vehicles (such as watercraft and aircraft), Fire, Explosion or Lightning Damage, Liquor Liability, Water Damage Liability Protection, Medical Payments, Personal Injury and specialized liability protection for specific business types.
Professional Liability Insurance
It is also known as errors and omissions (E&O) insurance. If your business is involved in professional services including making recommendations, giving professional advice, designing products etc., it will protect you from being sued for giving faulty advice or making the wrong recommendation that can harm others. Professional liability insurance will protect you from these errors in judgment and pay for legal expenses up to the policy limits. There is no one-size-fits-all policy for this insurance. Each industry will have its own set of concerns that will be dealt with in a customized policy written for a business.
Business Auto Insurance
It is important to have a business auto insurance policy if you or your employees drive personal vehicles or company cars during the course of business. This is very essential as auto accident claims can be very expensive.
Basic Business Auto Insurance includes Liability and Physical Damage Coverage. Liability insurance will help your business cover the financial costs for injuries, damaged property, and medical expenses if you or your employee are at fault for an accident. Physical Damage covers your vehicle in case of a collision or if one of your vehicles is stolen. You may need some form of Business Auto Insurance if:
- Your business owns, rents, or leases vehicles.
- Employees drive company-owned, rented or leased vehicles.
- Employees drive their own vehicles when conducting business.
- You or your employees drive company cars for both personal and business use.
Workers Compensation Insurance:
This insurance should be added to your business policy as soon as your first employee has been hired. It is generally mandatory for all businesses and is regulated on a state-to-state basis. This Insurance provides benefits to employees who are injured or ill on the job. In the unfortunate event of an employee dying due to work-related illness or injury, this insurance will provide benefits to the employee’s family. Penalties and fines can be assessed on employers who do not have workers compensation insurance.
Workers Compensation Insurance is invaluable both to you as well as your employees. It eliminates the need for litigation and creates an easier process for the employee. As many states limit the amount an injured employee can recover from an employer it helps control the financial risks for you as an employer. This safety net is very crucial as without it the impact of a serious accident can be disastrous.
Business Owners Policy
It is commonly cited as a BOP. It is an expansive insurance policy for small business owners and conveniently bundles property insurance and general liability in a single policy.
It covers:
- General liability insurance that protects your business from damage to the property of another person or business’ claims of bodily injury and associated medical costs.
- Property liability insurance – which includes your business equipment and furniture up to five different office locations( which includes accidental damage)
You should contemplate a Business Owners Policy if you:
- Require general liability insurance coverage.
- Have business equipment such as printers, furniture, and computers.
- Own the building where you work and want to insure the property.
- Work with and own large amounts of data on a regular basis.
- Have employees who can steal clients’ property or act dishonestly.
Additional Business Insurance Coverages
- Cyber Liability Insurance: This will help protect your business from damages related to computer systems, electronic data, data breaches, and even computer attacks. It provides the tools necessary to detect an attack early, prevent it before it occurs and minimize the damage.
- Commercial Umbrella Insurance: It provides extra liability coverage beyond your standard liability policy. Commercial Umbrella Insurance can help pay the remaining costs of a liability claim against your business if it exceeds your primary liability policy.
- Business Interruption Insurance: This can help to replace the lost income and keep your business afloat if you have to suspend business operations temporarily because of a covered loss or damage to your business property.
- Crime Insurance: This can protect your business from crime-related losses such as forgery and theft.
- Equipment Breakdown Insurance: It can protect your business from damages and costs related to computers, mechanical and electrical equipment breakdowns.
Deciding between the myriad business insurance coverages available can be confusing and overwhelming. We at Chacha insurance will simplify the process by sifting through the various options available and design a specialized package to meet your business needs and requirements.
Click here for a quote or call us at 888-888-9914. Either way we will make the process simple.
