Starting your own business means you've invested a lot of your own sweat, money, and time. You don't want any part of your company taken away because of legal claims you can't handle. As a result, you must protect your assets and yourself with appropriate general liability business insurance coverage.
General liability business insurance safeguards the investment you've made in your company. While there are numerous policy options and factors for various companies and situations, there are a few types of coverage that every startup requires.
Learn more about how various types of business insurance can help protect your company.
What is Business Insurance?
Business insurance, also known as commercial insurance, safeguards your business's property, finances, and assets. Business insurance is essential because it can compensate you for natural disasters or other losses.
Furthermore, business insurance protects your business in the event of a data breach or an accident that results in bodily harm. It covers a variety of situations, depending on the type of coverage you obtain, including:
- Financial losses as a result of incidents like a break-in or employee looting.
- Property damage caused by flooding, storms, fires, or other natural disasters.
- Expenses incurred as a result of data breaches, including costs incurred in informing affected customers.
- When an employee becomes sick or injured on the job, liability coverage is provided.
- Coverage for business interruptions caused by a covered peril.
- Protection in the event that a claim is made against your business for the goods or services provided.
- Expenses incurred to replace or repair equipment damaged as a result of a covered peril.
Your company's property is essential to your operations, and uninsured property damage can be costly to repair.
Different types of property insurance can protect your buildings, automobiles, and other equipment. The type of coverage you require will be determined by the type of property you own or rent.
4 Types of Insurance Needed for Businesses
The types of business insurance coverage you require for your business are determined by what your company does and the state in which you operate.
In fact, some business insurance policies are required by state law, and it is your responsibility to ensure that you have adequate coverage. As a result, business insurance is an important investment for protecting your company.
The following are the four most common types of insurance required by businesses:
1. General Liability Insurance
General liability insurance, also known as business or commercial liability insurance, provides essential coverages for a wide range of claims—including bodily injury, property damage, personal or advertising injury, medical payments, product-completed operations, and damages to rented premises.
Almost every small business owner or contractor should have some form of general liability insurance. When shopping for small business insurance and comparing policies, keep in mind that your rates will be determined by the specific features of your company.
2. Professional Liability Insurance
Professional liability insurance, like a product liability insurance policy, protects businesses that offer a professional service, such as massage or financial advice.
This should be considered by all types of service providers and protects your business from malpractice, errors, and negligence in providing services to customers.
Depending on your profession, your state government may require you to carry a business owner's policy. In some states, physicians, for example, are required to purchase malpractice insurance as a condition of practicing.
3. Workers Compensation Insurance
Most businesses consider workers' compensation to be a necessity. In fact, most jurisdictions require any business that pays employees a standard taxable wage to have a workers' compensation policy, and for good reason.
Workers' compensation insurance will cover the cost of medical expenses, benefits, and wage replacements if any of your employees are injured or have an accident. You never want to cover for these out of your own pocket, or worse, face a lawsuit if the workplace accident was your fault.
Furthermore, evading workers' compensation laws can result in severe penalties, including a hefty fine.
4. Commercial Property Insurance
Commercial property insurance covers all losses and damages to company property caused by a wide range of events such as fire, smoke, wind and hail storms, civil disobedience, and vandalism.
Unless you own your commercial property outright without a lien or mortgage, your lender will require you to have this coverage. Commercial property insurance policies are classified into two types:
All-Risk Policies
Cover a wide range of incidents and perils except those specifically listed in the policy.
Peril-Specific Policies
Cover losses from only the perils specifically listed in the policy.
Learn How Stampede Insurance Can Help You Find the Best Commercial Insurance Policy
Purchasing the right business general liability insurance policies can be a difficult process for all small business owners. However, this is one of the most important investments you'll ever make for your company and provides a significant amount of protection against losses.
For more than ten years, we have been a dependable insurance provider to give you comfort in the face of life's unforeseen events. We strive to offer you policies that are appropriate for both your professional and personal lives.
Our number one priority is the protection of people, their possessions, and their businesses from the risks of loss, damage, and theft under agreed-upon terms.
We are dedicated to offering our clients the best protection at the most affordable prices as an independent insurance agency, and we look forward to hearing more about how we can assist you.
For more information, get in touch with our agents right away and we'll be happy to assist you with all of your insurance questions and insurance needs. To get you connected, fill out our online form or contact us at 888-306-7887 at Stampede Insurance Services today!
