Unfortunately, many businesspersons learn it the hard way that theft, lawsuits, natural calamities, and accidents can have disastrous effects on their companies. According to research, 25% of the companies that get affected by such disasters failed to restart their business after such a calamity.
When it comes to choosing the right insurance policy for securing your business, here are the seven types you need to consider before making the final decision:
General Liability A general liability covers the damage or injury that might befall a person at your place or that happens to them to as a result of using the services provided by you. This takes care of situations that come under the category of negligence. General liability usually covers medical costs, settlement awards, and legal defense expenses.
Business Property Coverage This type of insurance policy covers the damage that might happen to either leased or owned companies in the event of a fire, vandalism, or damage because of storms. It can be of two types—‘all risks’ that covers a variety of losses and a ‘named peril’ that works for a particular type of calamity.
Errors and Omissions Insurance This is the professional liability that protects a company from third party claims that your negligence or malpractice has caused damage to them. In some states, you need physicians and other professionals to carry out this type of professional liability claims.
Business Vehicle Such an insurance policy protects the leased or owned vehicle that you use for business purposes. This insurance policy covers damage and injury claims of the third party that might occur as a result of automobile accidents.
Business Interruption This insurance policy is about covering the effects of unexpected events that might have forced the relocation of your business company. It provides reimbursement of lost revenue for around a year during which you can replace or repair the damaged equipment.
Business Owner’s Policy or BoP This business insurance policy covers a lot of aspects and provides a number of benefits at a considerably lower cost. There is no need for you to buy separate policies as it covers for business interruption, business property, and general liability.
Umbrella Liability This insurance policy covers the gaps that your other insurance policy might have left. For example, if your insurance policy has a limit, umbrella liability will cover the expenses exceeding that limit. Moreover, it provides protection in areas that might be excluded by your other business policy. Also, it is recommended that you buy the umbrella policy from the same provider where you have bought the other policy from. This will save you money.
Are you ready to launch your new business? Do not forget to secure it with insurance!