Every company and business needs protection and this is where insurance gets into the picture. For business, a commercial insurance policy is recommended, designed to protect the company depending on its needs.
Obtaining business insurance is a great step towards protecting the company assets, liability, and more. Businessmen and various business-related industries should obtain commercial insurance, covering their business needs in the long run. It offers a solution to the company’s problems.
Below are the different types of commercial insurance essential for business:
Professional Liability Insurance
This is also known as errors and omissions (E & O) insurance or malpractice insurance. Professional liability insurance covers a company against negligence claims that are resulted from mistakes or failure to perform. Keep in mind that the coverage varies from one industry to another. Each profession or industry had its own set of customized coverage addressing the concerns.
Commercial Auto Insurance
If your company has set of vehicles to run the business services or delivery products, auto insurance is required. Auto insurance will cover bodily injury and property damage liability in the event that a company employee suffers an accident during business hours and operating a company-owned vehicle.
This is one of the major commercial insurances that a company should have. Remember that a company can be sued for any damage caused by the negligence of the business services, resulting in harm to others like a defective product. It will pay for the damages and legal expenses if you are sued up to your policy limits. Moreover, your policy will pay for medical fees of others who are harmed by the business.
Workers Compensation Insurance
Most of the companies are required to have workers’ compensation insurance. It is an insurance that pays for medical care and lost wages for employees who are injured on the job. Regardless who is at fault, it will pay the damages resulted from an accident during work hours.
If an employee dies, the insurance will pay compensation benefits to the employee’s family. For start-up company in a small scale industry, workers’ compensation insurance is not required but it may still do good to ensure the protection from legal liability when an employee is injured on the job.
In this digital age, it is no secret that every company suffers from technology liability. This type of insurance covers data breaches, system failure, intellectual property rights, cyber extortion, damages to a third party system, and business interruption. But in keep in mind that the level of coverage will depend on the business needs and range of exposure.
Commercial Property Insurance
If your company is operating in a building – leased or owned – it is required to have property insurance. It should be specific to the company’s needs. It covers, theft, fire, vandalism, and some weather condition such as snow.
Commercial umbrella insurance will protect the company against loss resulting from catastrophic lawsuits. It provides liability coverage that is above and beyond the basic liability insurance. It pays beyond the normal basic coverage, especially with sensitive business cases.