There are several types of insurance policies available for businesses large and small. Depending on the state, various types are voluntary while others may be mandatory. Understanding the common types of business insurances can help owners determine which policies will provide the most comprehensive protection for their business and employees.
General liability insurance covers the injury of visitors or clients while they are on business property. It provides payment for any medical expenses related to an injury. Many policies also provide payment of legal costs in the case that the injured party sues the business.
Professional liability insurance, also known as errors and omissions insurance, is intended for businesses that provide a service to clients. This insurance policy protects the business against claims of negligent acts, malpractice and other mistakes while an employee is providing a service. In many states, it is mandatory for certain businesses to have this insurance, such as in medical and legal practices.
Workers compensation insurance is a business’s way of being protected when an employee gets injured while working. It covers the medical expenses and lost wages to an employee. If an employee perishes at work or as a result of a work-related injury, the employee’s family can receive the policy’s benefits. This form of insurance is mandatory for businesses with a specific number of employees, which is determined by state laws.
Commercial property insurance provides coverage for buildings and interior property. It protects against fire, theft, vandalism, and weather damage. The policy can be all-inclusive and cover any kind of damage, or it can also cover specified damages. Equipment and machines owned by the business may also be covered under this insurance.
Keeping your business safe is vital. A quick consultation with an advisor can greatly benefit you in learning more about how to keep yourself, your employees and your business protected.