Business insurance is an important investment every business, no matter the industry, needs to make. Commercial insurance is used as a protection against personal liability. It protects your business should unforeseen events occur in your business.
Although you might be tempted to cut costs by avoiding insurance, it is highly recommended that you have business insurance. Leaving your business unprotected might lead to the collapse of your business.
There are several different types of insurance coverage for business, but there are a few of them that every business should have.
General Liability Insurance – Companies maintain general liability insurance to protect against legal problems that arise as a result of injuries, accident and claims of negligence. This type of insurance policy covers property damage, bodily injury, medical expenses, slander, libel, settlement bonds, and the cost of defending lawsuits.
Product Liability Insurance – Companies that are involved in the manufacturing, wholesaling, distributing, and retailing of a product are required to maintain product liability insurance. This type of insurance policy protects against financial loss due to a defect product that results in bodily harm or injury.
Professional Liability Insurance – This type of coverage protects your business against negligence, errors, and malpractice. This type of insurance policy provides the financial resources necessary to keep your business operational when unforeseen damage occurs.
Commercial Property Insurance – This type of insurance protects your company property against loss and damage due to devastating events such as vandalism, smoke, fire, wind and hail storms, and civil disobedience. Business property insurance are often referred to as contents coverage, for it covers the inventory, computer equipment, furniture and equipment in your business office or warehouse listed on your insurance policy.
Anyone who is planning to start a new business or purchase an existing business should take the time to research the different types of commercial insurance and choose the right one for your need.