Under Cover: 5 Types of Business Insurance Your Company Should Have

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Under Cover: 5 Types of Business Insurance Your Company Should Have

Out of 20 million civil cases filed in US state courts every year, 71% make up lawsuits filed against businesses. The chances of a business getting sued are very real.

The only way to protect your business from getting sued is to have the right type of Morison Business Insurance. However, because there are so many types, it gets confusing.

Keep reading to learn the different types of business insurance and why you should consider each.

1. General Liability Insurance

There are types of business insurance policies that are required by state and general liability insurance usually is. This policy can protect your business from a variety of claims that include the following:

  • Accidents
  • Injuries
  • Claims of negligence

You’ll be able to pay for things like medical expenses, property damage, faulty products, legal costs, and more.

Insurance for businesses helps with the possibility of getting sued. Without this policy, your business is vulnerable to these broad situations.

2. Workers’ Compensation Insurance

Another one of the essential types of insurance for business is workers’ compensation. Workers’ comp policies are required in almost every state to protect employees.

This policy can cover medical costs and some lost wages for employees who fall ill or get injured while on the job. Typically, this insurance will only cover injuries that occur on the job site.

An insurance professional can help you with the laws regarding workers’ comp insurance. You’ll need to make sure you get the coverage that is required for your particular business.

3. Property Insurance

Business insurance policies like commercial property insurance can protect the physical location of your business and other property such as:

  • Equipment
  • Tools
  • Furniture
  • Inventory

An all-risk property insurance policy covers just about everything a small business needs. For example, if a fire were to occur, the damages to your office building and equipment are covered with this policy.

4. Professional Liability Insurance

Also known as errors and omissions (E&O) insurance, professional liability insurance covers negligence claims caused by failure to perform or mistakes. Each industry has its own set of concerns that require a customized policy.

If your business gets sued and the claims max out your insurance, you’ll benefit from having a commercial umbrella insurance policy. You can find umbrella insurance information here.

5. Business Interruption Insurance

Another one of the insurance types to consider is business interruption insurance. In a disaster, business operations will likely get interrupted in which your business will suffer from lost income.

Business interruption insurance will compensate a business for loss of income during these events. This is especially beneficial for businesses that have to have a physical location to do business.

Types of Business Insurance You Need

With the right types of business insurance in place, you can avoid financial loss because of a disastrous event or a lawsuit. Although there are various types to choose from, each policy is a good idea to consider.

Some insurers will bundle different commercial policies to help you save money. An insurer can also help you find out which forms of insurance are advisable for your company type and industry.

For more business information like this, check out the other posts on our website.