Business insurance is a type of insurance that protects a business’s assets, employees, customers, and reputation. It also allows companies to support their operations by making financial payments if they suffer a loss.
Businesses can purchase their coverage, or they can add it to their existing property or liability insurance policy.
Why Do I Need Business Insurance?
Business insurance is critical to protect my business against unexpected events. It can help me recover financially if my company faces a loss due to an unforeseen event.
Business insurance protects against losses such as:
- Loss of income or profit
- Loss of goodwill or reputation
- Environmental damage or natural disasters
- Damage to property caused by an employee or contractor
- Personal injury claims
Types of Business Insurance
1. Commercial Insurance
Commercial insurance protects businesses from financial loss due to accidents, fires, and other incidents. Fairfield commercial insurance companies evaluate the risks of my business and determine which coverage options are best for me.
Some of the most common types of commercial insurance include:
Business Interruption Coverage
This type of coverage provides financial protection for the loss of income due to a covered event. It pays for expenses such as wages lost due to business interruption and legal fees associated with defending or settling claims against my business.
Property Damage Coverage
It pays for repairs or replacement of damaged property caused by an insured peril — such as fire, vandalism, or flood — in addition to any losses that result from covered claims. This coverage can help protect my company from financial loss due to damage caused by weather conditions such as excessive heat or freezing temperatures.
It protects me against legal claims brought by people who are injured or killed in connection with my business. If a customer is injured on my property or if an employee is injured while performing work at my company, I will want coverage to cover damages they may be able to claim against me.
Workers’ Compensation protects my employees if they get hurt on the job. Workers’ Compensation benefits include medical expenses, lost wages, and other expenses related to work accidents or injuries. Workers Comp also covers permanent disability payments for workers who cannot return to work after an injury or illness related to their employment.
Commercial Auto Insurance
This policy covers losses sustained by vehicles while they’re being used on company property or while transporting goods between locations.
2. Corporate Insurance
Corporate insurance is an insurance policy that protects a company’s assets and liabilities. The type of insurance needed depends on my business’s size, support, and liabilities.
You can purchase corporate insurance through a commercial insurer, a specialized insurer specializing in insuring businesses with specific risks. The most common types of corporate insurance include:
- Property insurance covers assets against damage or loss due to natural disasters or other events that are not expected. It also covers damage caused by vandalism or theft.
- General liability coverage protects my employees and me from lawsuits related to business operations. General liability coverage protects against bodily injury, property damage, and exclusion claims.
3. Business Owners Policy Insurance
Business owner’s insurance protects the business and its assets from the financial consequences of an insured peril. This insurance covers many risks, including business interruption, property damage, stolen property, liability, and crime.
Business owners’ policies are available in two forms: commercial policies and personal policies. A commercial policy protects businesses with a physical presence in specific geographic locations. Personal policies cover individuals and their families who own or operate a business.
Tips for Finding the Right Insurance Coverage for My Business
Here are some tips to help me find the right coverage for my business:
- Research insurers and their offerings. If I doubt what type of coverage I should have, I will contact several insurers to ask about their products. I may also consider adding another layer of protection if I am already covered by an umbrella policy (which covers multiple risks) or if my existing policy does not provide enough coverage for my business operation.
- Look for discounts and other incentives from insurers. Insurers will often offer discounts and other incentives when customers renew their policies, so I will check those offers before making any decisions about which company will be best for my needs.