Types of Business Insurance
All businesses must account for various risks and exposures. Even diligent organizations with highly experienced employees should prioritize risk management and loss control measures. After all, lacking preparations and precautions could leave your business financially vulnerable and a single accident or error could have devastating consequences. Given these stakes, acquiring and maintaining an adequate business insurance portfolio is essential.
What Is Business Insurance?
Your organization must first understand that business insurance typically does not refer to a single insurance product. Rather, this term generally entails a collection of coverages that, when woven together, form a versatile and robust financial safety net that can limit out-of-pocket losses arising from common risks and incidents.
What Types of Business Insurance Do I Need?
Since business insurance is often assembled from many policies, your coverage portfolio can typically be customized to suit your unique circumstances. Still, many types of insurance may be advisable investments for most commercial enterprises regardless of size or sector. When putting together your business insurance portfolio, consider including the following products:
- General liability insurance—This coverage may help pay for third-party losses for which you are responsible, such as those arising from the following incidents:
- Bodily injury
- Property damage
- Personal and advertising injury (e.g., slander, libel, copyright infringement)
- Commercial property insurance—Also known as business property insurance, this coverage may financially protect your physical assets, including the following:
- Business interruption insurance—If your normal operations are delayed or disrupted by a covered incident, this type of insurance may help pay for ongoing expenses and resulting losses, such as the following:
- Rent and mortgage payments
- Lost or reduced revenue
- Tax and loan payments
- Business owners insurance policies—These arrangements, also known as BOPs, bundle the aforementioned trio of coverages and may provide a convenient and cost-effective alternative to purchasing all three separately.
- Workers’ compensation insurance—Legally required for most employers, this coverage can financially respond to employees’ on-the-job injuries and illnesses, including assistance with the following losses and expenses:
- Health care costs
- Lost or reduced wages
- Disability benefits
- Vocational rehabilitation
- Death benefits
- Employer legal costs
- Commercial auto insurance—This coverage can provide financial protection if your company uses motor vehicles for business purposes and may consist of the following components:
- Bodily injury liability coverage
- Property damage liability coverage
- Collision coverage
- Comprehensive coverage
- Uninsured/underinsured motorist coverage
Your organization should also analyze its operations to identify any remaining coverage gaps and address them with additional insurance solutions, such as the following:
- Cyber liability insurance
- Errors and omissions insurance
- Employment practices liability insurance
- Commercial umbrella insurance
Get the Right Coverage
At Pan American Insurance, our dedicated staff has over 30 years of experience serving the coverage needs of businesses. We will work with your company to analyze its circumstances, identify available options and assemble an optimal insurance portfolio. Contact us today to get started.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
Categories: Business Insurance