Reviewed by Aug 27, 2020| Updated on
What is meant by Business Insurance?
A cover by business insurance will guard businesses against losses due to events that may happen during the regular course of business. There are many different types of insurance for businesses. It includes coverage for property damage, legal battles and employee-oriented risks. Companies assess their insurance needs based on possible risks, which can differ according to the environment in which the company functions.
Business Insurance Explained
Small business owners need to carefully consider their business insurance needs due to personal financial exposure in case of a loss. If a business owner doesn't believe he can assess business risk efficiently and the need for coverage, he can work with a reliable, knowledgeable and licensed insurance broker.
Types of Business Insurance
The various types of business insurance are as follows:
(1) Professional Liability Insurance
Professional liability insurance is to be insured against claims of negligence resulting from errors or failure to perform. Professional liability coverage is not one-size-fits-all. Every industry has its unique concerns which need to be addressed.
(2) Property Insurance
In the event of a storm, fire or theft, property insurance will cover equipment, signage, inventory, and furniture. It does not, however, cover events of mass destruction such as floods and earthquakes. If your area is at risk for such issues, you will need to have a separate policy.
(3) Home-based Insurance
Homeowner's policies do not cover businesses based at home, such as commercial property insurance. If you are carrying on a home business, ask about additional equipment and inventory coverage.
(4) Product Liability Insurance
If your business manufactures products for sale, insurance against product liability is very important. Any company may find itself mentioned in a lawsuit because of the losses caused by their goods. In such cases, product liability insurance protects a business.
(5) Vehicle Insurance
All cars used for a business need full insurance. Businesses should insure against third-party injury. Alternatively, comprehensive insurance will cover the vehicle in an accident too.