Types of business insurance

Managing Risk: 5 Different Types of Business Insurance You Should Have

Every business faces risks that can cause serious damages and losses. Paying for these losses leaves the company in debts which may further lead to closure. However, the right insurance coverage will cater for your damages in the event of a disaster.

In the U.S, there’re over 5,000 insurance companies you can choose from. As you choose a company, here are five different types of business insurance you should consider getting.

1. General Liability Insurance

General liability insurance protects you and your business from claims that involve property damage and bodily injuries resulting from your operations, products, or services. It will cover medical expenses, legal fees, and the damages if your company gets sued.

Some examples of eventualities covered under general liability insurance include the following:

  • Slip and fall accidents
  • Other third-party workplace injuries
  • Product liability
  • Advertising injury
  • Professional liability
  • Third-party property damages

General liability insurance is essential as a single mishap such as a slip and fall accident or defective product can lead to a lawsuit which would send your business to its knees.

2. Commercial Auto Insurance

The car, truck or van you use in your business operations should have a commercial auto policy. The policy covers the costs of an accident if you or your employee is at fault.

Generally, you will need this insurance if:

  • Your employees operate owned, rented, or leased company vehicles.
  • Your employees drive their vehicles to conduct your business.
  • You rent, lease, or own vehicle for business.

This type of insurance saves you from paying for medical expenses and damages incurred if your commercial fleet is involved in accidents.

3. Workers Compensation Insurance

In Colorado, it’s mandatory for employers to carry workers’ compensation insurance. It protects you from claims that come from within your company, which are as a result of negligence.

If an employee suffers an injury on the job, this insurance covers the medical bills and lost wages. An employee who benefits from this policy won’t file a negligence claim against the employer. It covers damages regardless of who is at fault of the injury.

4. Business Interruption Insurance

If you operate a business in a physical premise, you need business interruption insurance. This policy covers you from any events which may interrupt your business. These include:

  • State functions requiring the closure of businesses in a specific area
  • Catastrophes
  • Natural disasters

During the interruption, your employees won’t be working. Your company will be incurring losses due to the business’s inability to operate. Your insurer will pay for the losses you incur up to the end of the interruption period.

5. Property Insurance

In an event of theft, storm or fire, property insurance will cover your furniture, inventory, equipment, and other assets. Natural disasters such as hurricanes, earthquakes, and floods cause mass destruction of property.

Your standard insurance policy doesn’t cover mass property destruction. So, if your business is located in a disaster-prone area, you can arrange for a separate policy with your insurer or get insured by a company specializing in such disasters.

Note that property policies vary depending on your insurer. Thus, make sure you get a full list of what is covered before signing the policy contract.

Invest in Various Types of Business Insurance to Prevent Losses

The losses incurred due to risks and uncertainties can be unbearable. Insurance coverage will bring your business back to normalcy whenever a disaster strikes.

Do you need insurance for your firm? We offer different types of business insurance policies at affordable prices. Contacts us today for a free quote.