Different Types of Business Insurance & What They Cover

Types of Business Insurance

It is crucial to back up both small and large business enterprises with insurance in case of any event that might lead to losses. Imagine starting a business with strong ambition, and after putting in lots of efforts to build the business, an unplanned event happens that causes your business to go under.

Business insurance will keep your business up and running irrespective of the loss that occurs during a disaster.

Can you run a business without insurance?

You can run your business without insurance, but it is advisable to back it up with insurance coverage that might come in handy when you least expect it to. Besides, some investors and financial institutions may request proof of business insurance before partnering with you.

What is the purpose of business insurance?

The major purpose of business insurance is to provide financial coverage for your business from claims of damage. However, to enjoy this coverage, you need to buy an insurance policy, after which a monthly fee or premium has to be paid regularly to your insurer. This monthly payment is what provides coverage for your business.

Types of business insurance

There are four major types of business insurance, namely:

  1. Property Insurance

This kind of insurance provides coverage from cases when the property used for business is damaged due to an unfortunate event. It covers damage to the building and assets inside it in the event of theft, fire, or other covered perils. It may also provide funds to keep the business afloat, depending on the extent of damage and the kind of policy you purchase.

  1. Liability Insurance

This policy covers your business from claims of damage resulting in lawsuits. It covers bodily injury and property damage caused to other people by your business, whether or not the business is at fault.

  1. Business Auto Insurance

Business auto insurance is similar to regular auto insurance; the only difference is that it covers vehicles used for business purposes. It provides coverage for bodily injury, property damage, and other related liabilities. It also covers the cost of repair or replacement of your vehicle

  1. Workers’ Compensation

This insurance is best for businesses with employees. It covers any damage your workers may suffer as a result of working for you. It covers

  • their medical bills
  • lost wages due to injury
  • family compensation at the demise of the employee

In addition to these coverages, there are other business insurances add-ons like:

  • Umbrella Policy

An umbrella policy is liability insurance that comes into play when you have exhausted your existing coverage limit. This kind of policy has higher limits and covers higher business risks.

  • Professional Liability/Error and Omission

If you provide professional services, like a consultancy, a law firm, or a clinic, you may want to consider buying this kind of insurance. It provides coverage from claims related to errors and unprofessional conduct.

  • Employment Practices Liability

Employment practices liability covers claims of damage resulting in lawsuits when an employer is liable for violating their workers’ civil rights.

Whether you own a small or large business, it is imperative that you insure it. Choosing the right business insurance might be a bit challenging, but having a professional to guide will put you on the right track. At Gee-Schussler Insurance Agency, our team of experts is always available to help. Reach out to us today to get a quote!