Different Types of Insurance for Business
The reason there are so many business insurance coverages is because there are so many different types of businesses. To start, there are primary coverages that every business needs. From there, each business faces their own unique set of risks. These unique risks need specific insurance solutions. In other words, no two businesses are the same. Even businesses in the same industry may need different coverages. Coverages can depend on location and other variables.
For example, a business located close to a coastline and susceptible to hurricane damage may need more business property insurance coverage than a company that’s more inland. Insurance companies offer a broad range of insurance coverages. These coverages help protect both common and unique risks for businesses.
Deciding between the myriad coverages available can be overwhelming and confusing. You can make shopping for business insurance easier by asking yourself the right questions. The first question to ask yourself is, “What type of business insurance does my business need?”
A good place to start your analysis is by learning what business insurance will and will not cover. From there you can start researching types of insurance coverage for your situation.
Business insurance can help protect your business assets from:
- Losses due to business property damage
- Lost business income
- Employee illness and injury
It can also help protect against liability claims made against your business for damages caused by professional services. That said, business insurance does not usually cover the costs of liability claims if professional services caused the damages.
Different Types of Business Insurance
There are many different types of business insurance. However, most businesses need the basics such as:
- General liability insurance
- Commercial property insurance
- Business income insurance
These coverages are included in a Business Owner’s Policy (BOP). Many businesses also need commercial auto insurance and workers’ compensation insurance. But these aren’t the only coverages available. There are even more coverages that can help cover your unique risks.
With careful selection, you can customize a comprehensive solution for your business. You can do this by combining several primary insurance coverages with more specific coverages.
Types of Insurance
General liability insurance helps protect your business from liability claims. This can include customer slip and fall accidents and damage to someone else’s property that your business causes.
Commercial property insurance covers your:
Commercial property insurance can also help restore your property back to it’s original condition.
Professional liability insurance helps protect your business from errors in professional services provided.
Workers’ compensation insurance provides benefits to employees who are injured or ill on the job. It also provides benefits to the family of workers, if they die on the job. This coverage is required in most states for businesses that have employees.
Business income insurance can help replace lost income if your business is unable to operate due to a covered loss. This coverage helps replace lost income that results from things like fire or storm damage.
Business Owner’s Policy (BOP) bundles coverages into a single policy for small business owners. Most businesses will need general liability, business property, and business income insurance.
Additional Types of Insurance Coverages
Data breach insurance helps cover the costs associated with a business-related data breach. This can include costs to notify customers and employees. It can also include costs to run PR campaigns to help restore your business’s reputation.
Commercial umbrella insurance extends your business’ liability coverage beyond your standard liability policy. For example, say a liability claim exceeds the limits of your liability policy. Your commercial umbrella insurance can help pay the remaining costs of the claim.
What Kind of Business Insurance Coverage Do You Need?
You’ll likely need the basics such as:
- General liability insurance. This helps protect your business from accidents that occur and cause bodily injury. For example, say a customer slips and falls in your store. General liability insurance can help cover medical expenses associated.
- Commercial property insurance. This helps protect your business’s physical property. For example, say your computers and inventory get damaged in a fire. Commercial property insurance can help cover the costs associated.
- Commercial auto insurance. This helps cover financial costs that result from an auto accident. For example, say your employee is in an accident and is found at fault. Commercial auto insurance can help cover the costs associated.
- Workers’ compensation insurance. This helps protect your employees if they suffer an injury or illness on the job. For instance, say you own a construction company and an employee gets injured from equipment. Your workers’ compensation insurance can help cover their medical expenses. It can also help cover lost wages that result.
To determine your coverage needs, you’ll need to know your unique business risks. This will help you figure out what extra business insurance coverages you might need. For instance, some businesses may want to include business interruption insurance. This is also known as business income insurance. You may want to provide disability insurance to your employees as well.
One of the best ways to assess your unique risks is to talk to a professional. A good business consultant or insurance agent can analyze your situation. They can then help you customize an insurance solution with the right coverages. This can help you meet the risk protection and budgetary requirements of your business. Remember, over time your business and industry may change. These changes may need different types of insurance. It’s important to review your insurance coverage. You want to make appropriate adjustments to ensure you have the protection you need.
Get a Quote on Many Types of Insurance
The Hartford offers a variety of insurance coverages for your business. We can help you determine what your business needs to help ease your mind. This makes protecting your business easy.
Our insurance agents can help you determine risk and ensure you get insurance that covers damages you may face. Coverage from The Hartford helps protect the business you worked so hard to build, so get a quote today.