Business insurance comes in all shapes and sizes. While each business has unique types of insurance to consider, there are certain types of insurance protection most businesses need. These are the types of insurance protections and products you want to make sure to include when shopping around for business insurance.
Business Owners Policy
Also referred to as a BOP, this is a basic insurance policy that provides protection for your business in a variety of ways. Most business owner's policies include the following types of insurance coverage:
- Business property insurance, including protection for buildings, equipment, inventory, furniture, etc.
- General business liability insurance, which protects your business if someone is injured on your property.
- Business interruption insurance that offers protection for your income if your business operations are interrupted by the covered event.
Covered events include a variety of things including tornado damage, fire, hail, theft, vandalism, etc. This policy is one of the most essential policies for business owners to purchase. Though it is far from the only business insurance you will need.
Professional Liability Insurance
Otherwise known as errors and omissions insurance, most businesses that provide any type of professional service need this type of protection. In fact, many businesses that don't believe they need it, such as hair salons and barber shops, need this type of protection for their businesses.
How does professional liability business insurance work? Most people have heard of medical malpractice insurance. Professional liability coverage works in a similar fashion by providing funds for your legal defense against allegations of professional misconduct, wrongdoing, or negligence against you or your business. It will also cover judgments against you or settlements that reach up to the coverage limit.
Workers' Compensation Insurance
If your business has employees, whether the laws in your state require the protection or not, you need the protection workers' compensation insurance provides your business if workers become ill, have accidents, or are killed while performing their work duties for your business. It is the one type of business insurance that allows you to safeguard your employees by providing for their medical care, rehabilitation expenses, and lost wages until they are able to return to work. In the event of permanent disability or death, death benefits are paid to the family through workers' compensation insurance.
Of course, there are other types of business insurance your business may need, such as business auto insurance, product liability insurance, cyber liability insurance, crime insurance, equipment breakdown insurance, and more. Working with a trusted insurance agent can help you get the right business insurance protection to meet your needs. Reach out to a company like Welsh Insurance Agency Inc. for more information about business insurance.