What is business insurance? Business insurance is a way of protection against potential financial loss caused by events beyond your control. It’s a sort of proactive insurance, mostly used to mitigate the risk of an unpredictable or contingent financial loss. You may have heard of business bankruptcy and also of venture capital.
There are many types of business insurance policies, and all of them are designed to protect your assets. The most common types are commercial auto and workers compensation. Both of these can be incredibly important, but you’ll find that commercial property insurance is probably the more common type.
Property damage is one of the primary reasons for purchasing insurance. One of the main reasons that people buy property is to live in it. If you were to lose that property, you’d probably incur some kind of loss. Some of that loss might be due to accidents, but even the non-accidental kinds can still result. That’s where liability insurance helps protect you.
Commercial property insurance covers loss or damage to the building itself. You might think of this as coverage for your home. However, buildings are often more valuable than homes, and they can endure more damage. The building itself might be worth more than the home itself, so if you were to suffer an accident there, you might not be on the hook for as much. A good policy will take care of the structural damages that might arise. It will also typically provide coverage for any injuries that people get on the job, for the building itself, and for any damage caused by vandalism, such as falling objects.
When you’re looking for the best coverage, keep in mind what it does for you. Some business insurance policies will protect businesses from customers who cause harm. Others might have better liability protection. Still others might provide coverage for damages done to the business itself. One of the best things you can do is to talk with independent agents who can look around at your policy options and give you a quote. This will help you compare what each policy offers, and it will allow you to make the best decision about which policy to choose.
Workers compensation is perhaps the most important type of insurance a business should purchase. If you have employees, you need to make sure those employees are properly covered by the insurance policy. The way a workers’ compensation insurance works is that it will pay a percentage of medical costs for employees, if they’re injured on the job. Some types of policies will cover employers for workers compensation, but it is typically better to have your own workers’ compensation insurance coverage because it will also cover you for liability, which can be a critical element if you have employees working under you who are injured on the job.
Business owners need to think about several types of business insurance coverages in order to protect their business and themselves from liability. When thinking about how much coverage to purchase, it is important to consider what you use your business for. If you run a service or a business that provides a service to the public, you may want to look into property damage coverage. Property damage coverage will reimburse you for repairs that you need to make to a customer’s facility, if you have been in an accident on the property that caused damages.
Another aspect to consider is workers’ compensation, which covers employees or non-employees who have been injured while at work. In general, workers’ compensation covers employer liability for wages lost and medical expenses that have been paid out. However, it also covers legal costs that have been paid out, as well as rehabilitation costs that have been paid out. This is important to know because often workers’ compensation covers more than just medical bills, it also covers lost income for the employee or non-employee, depending on the nature of the injury.