MEANING OF BUSINESS INSURANCE
Business insurance is a class of insurance plan that offer insurance coverage to business owner against losses emanating from various incidents which negatively affects the operations of their business entity. Buying business insurance policy will protect the policyholder against risks of theft, accidents, cyber attacks, property damage, fire outbreak, third party liability from lawsuits and others. If the insured event happens, the insurance company will pay the policyholder the actual value of the loss or a replacement. In this article, we will take you through the different types of business insurance needed to operate your businesses without difficulties.
Types of Business Insurance
Property Insurance:
This is the type of business insurance that offers insurance coverage to properties of business outfits such as equipment, furniture, inventories in the event of destruction by fire, theft, storm etc. However, it must be noted that this type does not cover personal properties of the owner of the business. Furthermore, it most times does not cover incidents of mass destruction of business properties such as earthquakes, flood except where the terms of the insurance policy says otherwise. Therefore, it is advisable that you take add-on coverage if your business is sited in a location with high risk of earthquake and flood.
General Liability business Insurance:
This general business insurance is crucial for any business. It provides coverage for legal fees or charges incurred in a law suit by third parties. It also covers liability for medical expenses – in event someone is injured in your business premises. Sometimes, the liability comes from property damage caused by your business operations.
Product Liability Insurance:
There are lots of businesses that are into the manufacturing of products and commodities. This type of business insurance covers liabilities that arise as a result of defects in the product manufactured by the business entity.
Commercial Vehicle Insurance:
This is the type that provides insurance coverage for commercial vehicles used in day to day running of a business. The lowest level of commercial vehicle insurance for businesses is the third party motor vehicle insurance against liabilities of third parties. However, it is advisable that business owners buy the comprehensive coverage plan. The comprehensive policy will provide insurance coverage for third parties as well as employees’ vehicles when used in running the business.
Cyber Liability Insurance type of business insurance:
This is a digital age and as such, business owners must safeguard their businesses against cyber threats. Cyber liability insurance protects businesses against data breaches, cyber attacks. And any other digital risks that could compromise sensitive business and customer information.
Workers’ Compensation Insurance:
Workers’ compensation type of business insurance is mandatory in most states. This policy covers medical expenses and lost wages if an employee sustains injury in the cause of his duty.
Business Interruption Insurance:
This is the type of business insurance that is ideal for businesses that use physical location to run their businesses. These types of ventures include businesses like manufacturing companies and retail stores. Here, business disruption insurance indemnifies the holder business in the event of disruption in the smooth running of the business emanating from the happening of any peril.
Commercial Crime Insurance:
This is the type of business insurance that protects your business against crimes such as theft, fraud, or embezzlement by employees or customers.
Professional Liability Insurance:
This type of business insurance protects against the negligence of the business owner as a result of omission or commission. It is the insurance protection from liabilities arising from the failure to perform some business obligation. Sometimes, it could also be from mistakes arising from performing such an obligation. It is therefore imperative for business owners to ascertain the nature of professional negligence they are exposed to and insure themselves against its occurrence.
Employment Practices Liability Insurance :
This type of business insurance protects against claims in connection to wrong employment practices, such as discrimination, harassment, or wrongful termination of contract of employment.
Commercial Premises Tenant’s Insurance:
If your business operates from a rented space, this insurance policy can protect your assets, inventory. And equipment kept within the rented premises.
Conclusion
Navigating the complex world of business entails hassle free running of the business. And joyous interactions with customers, however, it also comes with its risks. Having the right type of business insurance geared towards your business’s needs is critical for mitigating the risks and ensuring the survival. And continuous existence of your operations. Buy one today.
