Are you thinking about whether your business is too small for business insurance? Think twice! There is no business that matters to size to get hit by the following:
- Natural disaster
Yearly, 1:3 of businesses experience a situation covered by insurance. Without insurance, it is on you to cover costly damages that put the future of your business at risk. Business insurance can protect your business from several risks. Selecting the right insurance coverage is overwhelming, there are several options and providers to select from.
You may use these extra resources to learn more about the common types of business insurance and handle insurance claims.
Business insurance will protect the following:
- Physical assets
These are the events of natural disasters or loss of income. It is a form of risk management for a business that offers financial protection when needing it.
Kinds of business insurance
There are various types of business insurance protecting the business in different ways. Here are the various types of business insurance coverage:
- General liability insurance. General liability insurance includes the basic coverage that any business needs. The liability policy will cover several legal disputes with third parties, such as:
- Property damage
- Accidents causing bodily injury
- Copyright infringement
Damage suffered because of defective product
When damaging someone’s property when working in their home or office, general liability insurance covers the cost to replace or repair it. It will also cover the business against claims of slander or libel. If an employee or you says or posts something damaging to the client who sues, you will be covered by the insurance policy.
- General liability insurance can cover lost wages and medical expenses if someone other than an employee or you are injured. If someone slips and falls at the location or trips on the tools and equipment, the general liability covers you. The type of insurance doesn’t cover damage or negligence to property that is owned by you. You need a separate policy to insure the business property.
- Commercial property insurance. Whether you own the building or lease a space, commercial property insurance is every business needs. Commercial property insurance can protect the physical assets of the business, including:
- Real estate
The type of insurance coverage can help cover the cost of replacing or repairing damaged property, you can contribute to operating the business. Your commercial property insurance mustn’t cover natural disasters, such as:
- Business owners policy. The insurance company bundles general liability insurance with commercial property insurance at a discounted rate. It is called a business owner’s policy. A business owner’s policy is beneficial for a business with equipment or inventory or operates at the physical location.
These are only a few of the business insurance that a business can purchase. But, it doesn’t mean that all mentioned are good insurances for any business. Remember that any business has a proper type of business insurance to use, which you should find out for your business.