Risk Management: What Does Business Insurance Cover?
Did you know that around 20% of new businesses shut their doors after the first two years of being in businesses? If you are a new business owner, you want to take all precautions to keep your business from having to close. Something that you want to make sure you have right from the beginning is the correct amount of insurance to cover you in case of an emergency.
Keep reading to learn more about what does business insurance cover.
When it comes to business insurance, there are different options because not every business has the same needs. Business insurance can help pay the costs of property damage, lost business income, and lawsuits.
The best thing is to learn about all of the coverage options to choose the best ones for your specific needs.
Business Owner’s Policy
This is one of the most popular policies because it combines property, business income coverage, and general liability in one policy. Combining these three crucial policies will help save you money, and it is also convenient because everything is together under one umbrella.
You will be protected in case a customer makes a claim against your business if they are injured in your physical store. General liability will help cover you against the claim costs and the potential defense costs you might have. With this policy, you will also be protected from the costs of errors in your ads.
Professional Liability Insurance
This type of insurance will help cover the costs for any claims that your business made errors when providing its services. An example of this is if you make an error and it causes a client to lose lots of money, this policy can help cover the costs if the client were to make a claim against you.
Unfortunately, a business does not have to do something wrong to be sued. Usually, coverage would apply to defend the company in case of a lawsuit.
Worker’s Comp Insurance
If you have employee’s, you will want to carry a worker’s compensation insurance policy just in case. Most states require businesses to have this policy when they have employees to help cover the costs when an employee is hurt.
If someone suffers from a work-related injury or illness while they are working this policy will take care of all of their medical bills. You can also have peace of mind that if a worker’s family sues your business, your legal fees will be covered with your policy.
It is a great idea to have a general knowledge of how much different insurance policies costs with a business insurance cost guide. This will help you prepare when you start shopping around for the policies that you need.
Data Breach Insurance
Thanks to technology and the world wide web, this insurance type exists. This will help protect your business from the costs that come with cyber attacks or cyber threats. If your business is ever attacked, you can have peace of mind that your costs are covered to help you find the source of the breach and to mitigate the damage.
With any data breach, there are extra expenses, such as communicating with those that were affected and dealing with public relations to manage your reputation. This is why a policy for a data breach is vital because it will cover all of the extra costs that come with being attacked or threatened online.
Commercial Flood Insurance
If your business is in a zone that tends to flood quickly, you do not want to skimp out on flood insurance. This policy will protect your business from the costs that come with flood damage. This damage can include physical damage to your location or loss to your products, equipment, tools, electronics, etc.
Your policy will also help cover the costs to repair the damaged floor that you might be left with.
Commercial Auto Policy
If you have an employee that is involved in an accident while they are driving for business reasons, this policy will help cover the damage and injuries caused. If you are driving for work and get in an accident, you too will be covered for any damages that occur or any medical bills that you receive.
Employment Practices Liability
This insurance policy will protect your business if an employee decides to sue you. Sometimes employees will sue even if you are not at fault, but you will still have to deal with costly legal fees to defend yourself.
Employees can make claims against your business for wrongful termination, harassment, or discrimination. In any of these cases, an employment practices liability policy will help cover the costs related to a lawsuit.
Home-Based Business Insurance
Thanks to the internet, more people are running their businesses out of their homes instead of paying rent in a location. If you have equipment, tools, and supplies that you keep at home because of your business, this coverage will help cover the costs of property and liability risks.
Now You Know What Does Business Insurance Cover
As you can see, there are many options when it comes to business insurance. It is impossible to offer only one type of insurance because everyone has different business needs. Now that you know more about what does business insurance cover, you can make an informed decision on what will work best for your business.
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