What Does Business Insurance Cover?

Business Insurance is one of the best investments you can make for your company. Your business is the culmination of the years of effort it took to get it off the ground, so keeping it safe is important. The right insurance policies can shield your business from accidents and financial damage.

What risks does insurance cover for your business?

The amount and type of coverage you need will vary based on a number of factors, such as:

  • Business type
  • Business size
  • Number of employees

What Business Insurance Covers

Not all businesses will require all of the policies listed below. Take the time to consider what the risks of your individual industry are and which of your assets are most important to you when deciding which policies will best meet your needs.

General Liability Insurance

General Liability Insurance provides your small business with fundamental coverage. Whatever other policies your business needs, this one is a must. General liability protects your organization from third-party lawsuits over accidents such as a customer getting injured, an employee causing accidental property damage, accidents related to the product you sell, or copyright issues from online advertising. Your general liability policy can be used to cover legal fees, medical fees, and other expenses related to a lawsuit.

Workers’ Compensation Insurance

Workers’ Comp protects your employees by covering medical expenses and lost wages in the event that they are injured or get sick as a result of the duties performed for your business. Because your employees are provided with this financial support through workers’ comp, the policy protects you from being sued by an employee for medical expenses. In most states, workers’ comp is required by law if you have any employees.

Commercial Auto Insurance

Commercial Auto Insurance covers you and your employees while you’re using vehicles for work. This policy protects you from the financial repercussions resulting from being found at fault in an accident. If you get in an accident while using your vehicle for work purposes, your personal auto insurance won’t cover it. If you use your personal car for work purposes, if your business owns or leases any autos, or if your employees use company cars, you’ll need commercial auto insurance.

Professional Liability Insurance

Professional Liability Insurance protects your business from lawsuits filed over professional errors or accidents. While general liability insurance protects you from physical damages, such as a customer slipping and falling, professional liability insurance protects you from financial damages such as making a professional mistake that causes a third party to lose money. This includes:

  • Mistakes that cost customers money.
  • Giving poor advice.
  • Missed deadlines.
  • Failure to fulfill an order.

Umbrella Insurance

Umbrella Insurance is the ultimate safety net for your business. If the costs associated with a claim on one of your other policies goes over the policy limit, umbrella insurance will make up the difference. This extra safety net can benefit both large and small businesses who may not have the money to pay a high-dollar claim that exceeds policy limits. It may be especially useful for companies with a larger number or assets they want to cover.

To determine which policies are best-suited to your business, contact us for a quote now. An accident resulting in damages or a lawsuit can have a huge impact on your business’s financial stability. Making sure you have the right coverage is a vital part of keeping your company safe.

Smiling Female Contractor

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