Business owners have a lot on their plates, and it’s tempting to put things like business insurance on the back burner. However, it’s critical to safeguard your company against unexpected accusations and lawsuits.
We live in a litigious society, and even if you feel you’re doing everything right, you could be sued. Business insurance can help protect you and your company in a number of ways.
3 Most Commonly Asked Business Insurance Questions
Here are the top three most common business insurance questions most business owners have.
#1 Why Do I Need Business Insurance?
Business insurance, also sometimes referred to as commercial insurance, is essential security for the possibility that things don’t go as planned. If an accident occurs in your place of business, for example, you could be sued. The high cost of litigation, medical bills, and property damage claims is the primary reason why businesses need insurance.
The risks you face influence the type of insurance you need. General liability insurance, which covers client injuries and other common mishaps, is the most popular policy obtained by businesses. Additional rules may be required if you have workers, own a facility, drive a company car, or provide professional advice.
#2 What Does Business Insurance Cover?
There is no such thing as a single insurance policy that covers everything. There are two broad areas of coverage in general:
Business liability insurance protects you in the event that someone holds your company liable for damages, injuries, or losses.
Commercial property insurance pays for the expense of repairing or replacing damaged or stolen commercial property. This includes the structure or building in which you operate your business.
#3 What Kind of Business Insurance Do I Need?
This is dependent on the kind of business you have. General liability insurance is required by most firms, especially if you meet with clients face to face. Professional liability insurance is required if you provide professional advice. If you have company equipment, such as computers or tools, you should look into a business owners’ policy (BOP), which combines general liability and property coverage.
Certain business owners in Florida are required by law to get insurance:
- If a company has four or more employees but does not work in construction, it must acquire workman’s comp insurance.
- If a company employs even one person in the construction industry, it must acquire workers’ compensation insurance.
In addition, the law compels you to get commercial auto insurance if your company owns, leases, or operates a vehicle.
5 Main Types of Business Insurance Coverage
To further help you understand commercial insurance, here are the five main types that you may want to consider.
General Liability Insurance
Legal concerns arising from injuries, accidents, and negligence claims are often covered by general liability insurance. Libel, slander, settlement bonds, litigation defense, property damage, bodily harm, medical expense, and other claims are covered by this form of insurance.
Product Liability Insurance
You may be held liable for a product’s safety if you sell it. Businesses that wholesale, distribute, or produce items require the greatest product liability insurance. If a defective product causes bodily harm or injury to one or more people, this type of insurance can protect your company from financial liabilities.
Professional Liability Insurance
If your company offers services, you should consider purchasing professional liability insurance, sometimes known as errors and omissions insurance. This sort of insurance protects your business from concerns like errors, malpractice, and carelessness in the services you provide to your customers.
Commercial Property Insurance
This type of insurance protects your organization from loss or damage to company property caused by storms, fires, wind, and other natural disasters. Commercial property insurance can cover everything from lost income to damage to the structure and its contents.
Home-Based Business Insurance
More than ever before, businesses are being run out of their owners’ homes. Furthermore, many people are unaware that home insurance does not cover commercial losses.
You may be able to add provisions to your existing home insurance policy to cover some fundamental business risks, such as property damage, depending on the type of business you operate, and the risks associated with it. However, you may find that these very basic add-ons are insufficient to adequately protect your business. To be adequately insured, consider acquiring supplementary insurance coverage, such as professional liability and/or general liability insurance.
Always check with your insurance representative before deciding which forms of insurance to get. They can provide the proper guidance to ensure that that your company is adequately insured.
Find the Best Business Insurance Coverage for Your Company
We understand that starting and operating a business is a lot of work and adding business insurance to your already-heavy plate may feel intimidating.
However, at GWK Insurance, we are here to assist you in finding the best possible business insurance coverage to safeguard your organization. Contact us for assistance in obtaining the most competitive estimates for your insurance needs.