4 Types of Business Insurance

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Business insurance is the basic need for all kinds of business no matter what the size and the nature of the business.

There are different aspects of a business that should be considered while looking for a business insurance or reviewing your current insurance coverage.

Different businesses have different insurance requirements; they are discussed below: 

Workers Compensation Insurance

Almost in every state of the U.S., workers compensation insurance is required by law.

For an employee who falls ill or becomes injured, it provides coverage for treatment costs and any portion of salaries that have been lost.

Workers compensation insurance only covers injuries or illnesses which occur on the work site. 

Commercial General Liability Insurance

Commercial general liability insurance is designed to protect you and your business from different kinds of claims such as injury, accident, or negligence claims.

This kind of insurance can help pay for things like medical expenses, libel, damaged property, slander, medical expenses, legal costs, and faulty products.

Professional Liability Insurance

Professional liability insurance insurance is also called “Malpractice insurance” or “Errors and Omissions Insurance”.

It helps to protect you from a lawsuit that alleges professional services negligence, making omissions or mistakes, or providing inferior work.

For a business which is based upon service, professional liability insurance is important; however, it can also be required for other types of businesses.

Property Insurance

The term “property” can mean differently depending upon the types of business.

So it is important to have Commercial Property Insurance.

Most small businesses would not be able to change without this insurance coverage.

Properties covered by this insurance can include equipment, supplies, computers, inventories, and buildings.

Commercial property insurance can be of two types:

  1. All-Risk policies which are a good way to avoid duplicates as well as gaps liabilities coverage.

  2. Peril Specific Policies or named peril coverage that is applied only to those perils that are particularly mentioned in the policy.

As you can see, there are many types of business insurance so check with your local business insurance agent for help in selecting the right ones for you.