Running a business usually requires various types of commercial insurance, especially if you aim to reach a large market. Every business needs to customize its basic plan with coverage extensions. Here are nine of the most common types of business insurance to consider.
General Liability Insurance
The more exposure your company gets, the more chances it has of facing a lawsuit filed by a dissatisfied customer, an ex-employee, or a jealous competitor. Your rival might also sue your enterprise if you run an ad campaign similar to theirs. Someone might trip and fall at your establishment and sue you for it as well. In such situations, General Liability insurance pays for court fees, lawyers, and other legal expenses when your company faces a lawsuit.
Commercial Property Insurance
If you own commercial property, it's wise to carry Commercial Property insurance. It will financially protect your assets in case they are destroyed or stolen. A business that stores plenty of inventory needs this insurance to replace damaged goods. Many small to medium-sized businesses choose a Business Owners' Policy (BOP). This plan combines General Liability and Commercial Property insurance at much less cost.
Business Interruption Insurance
It's good to have access to cash when the business comes to a grinding halt for one reason or another. Some businesses close for several months to remodel, while others close due to a damaged workplace or lack of business. In these instances, Business Interruption insurance pays for financial losses. It can cover wages, taxes, expenses, debt, and more.
Professional Liability Insurance
Giving professional advice that leads to turmoil can stir up emotions and lawsuits from victims who feel harmed by the advice. Lawsuits based on bad advice may arise from colleagues, partners, vendors, clients, and employees. Carrying Professional Liability insurance can cover the legal fees in such cases.
Workers’ Compensation Insurance
Every state requires employers who hire a certain number of employees to carry Workers' Compensation insurance. This coverage does not only help employees injured on the job pay for medical bills, but it also helps employers avoid serious lawsuits due to at-work accidents. Workers' compensation also pays a certain percentage of the victim's lost wages.
Commercial Umbrella Insurance
In some cases, a Commercial Umbrella insurance policy is the most cost-effective way to go. An umbrella policy covers most of your business risks typically not found in standard plans. It may extend coverage limits beyond the top limits of standard plans.
Commercial Auto Insurance
Any business that owns even one vehicle needs Commercial Auto insurance, as mandated by every state. So if you own a fleet of vehicles, you'll need coverage for every vehicle. Some insurers also give discounts for large fleets. If your workers use their vehicles for business trips, their personal insurance will not cover them, so commercial auto insurance becomes very important in such cases.
Cyber Liability Insurance
Almost all businesses use computers, and most managers know that any business can get hacked. So it's best to be prepared with Cyber Liability insurance, which may pay for damaged equipment and losses from compromised financial data.
Product Liability Insurance
If your company manufactures a product and harms someone or makes them ill, the affected people may sue you. This insurance covers medical bills, legal costs, and losses deriving from such incidents.
Business insurance can seem complex when you consider all the different types available. If you want to know more about different business insurance policies in detail, Contact us today. At United Direct Insurance Services, our team of expert and experienced insurance agents will create a personalized plan for you and help secure your business’s finances in any adverse situation.