7 Types of Commercial Insurance to Protect Your Business
From the instant an entrepreneur begins doing business, they are exposed to a number of risks. It is essential to have the right insurance coverage the moment your business is launched. All it takes is one catastrophic event or lawsuit and a small business can be wiped out. Fortunately, any business has access to insurance protection against such losses.
Here are some insurance options to consider for your business:
1. Professional Liability Insurance
Also called errors and omissions insurance, professional liability insurance protects a business against claims of negligence due to failures to perform, or mistakes. These policies are customized to fit the particular industry. For example, healthcare providers need professional liability insurance in case of lawsuits against their practice.
2. Property Insurance
It is vital that any business has their property properly insured. Whether the property is owned or rented, it is crucial to cover signage, inventory, equipment, and furniture. Theft, vandalism, bad storms or fires can decimate a business. However, standard property insurance may not cover earthquakes or floods, so if you think these are necessary be sure to purchase such coverage separately.
3. Workers’ Compensation
If you are planning to hire employees, be sure that you are covered by workers’ compensation insurance. This insurance covers disability or death as well as medical treatment if something happens to an employee while performing work duties.
4. Home Based Business
Oftentimes, businesses get started in the home, but it is unfortunate that home insurance policies do not cover such enterprises in the same way commercial insurance does for a small business. It is important to speak with your insurance provider about insurance coverage for your inventory and equipment before problems occur.
5. Product Liability Insurance
Product liability insurance is a must if you are going to be manufacturing products that will be sold to the general public. Even if you do everything possible to ensure the quality and safety of your product, you can still be hit with a lawsuit. Coverage can be tailor-made to your specific product.
6. Auto Insurance
You will need business auto insurance any time a vehicle is used for your business purposes. The least coverage you should have is for third-party injury, but why risk the loss by not carrying comprehensive insurance on all business related vehicles, especially those used for delivery purposes.
7. Insurance for Business Interruptions
When disaster strikes it can interrupt your ability to operate a business. For example, if the location of your business is struck by natural disaster, you may have to temporarily close your business. With proper insurance, you can avoid losing your business and your source of income due to unforeseen catastrophic events. Business interruption insurance will fill in the gap between lost income and getting your business back up and running.
With the right insurance policies there to help, you can avoid major financial losses. Speaking with your insurance provider is the best place to begin when looking for the right insurance for your needs.
At Absolute Choice Insurance, we are committed to providing Floridians with quality home, commercial, and auto insurance. For more information, contact us today.