If you are a new business owner or someone who recently launched a startup, then we are sure you must be thinking about getting your business insured. While the thought is excellent, we also understand that among the many types of business insurance, it can be hard for you to pick one that is the best business insurance for you.
If that is the case and you, as a business owner, want to understand the best types of business insurance in detail to make your best pick, then this article has you covered. Hop on below to learn about the different types of business insurance and what risks each of them would protect you against.
What is a Business Insurance?
Business insurance is an umbrella that can protect your business from the rain of uncertainty. This term has various types which help businesses cover several different forms of financial losses. Depending on the policy or insurance you will pick, the business insurance can cover anything from property damage to legal liability and even medical expenses, among several other things. Here are a few of the different types of business insurance that may come in handy for your business.
What Type of Business Insurance is Right For Your Business?
Here are the several different types of business insurance that might be a perfect pick for your business:
General Liability Insurance
General liability insurance is a type that will protect you from any business operations or related claims. For example, suppose someone is injured on your business property and sues you and your business for bodily injury. In that case, your insurance will cover the damages they perceived, their medical bills, along with the legal fees.
Moreover, this type of insurance will also cover costs of damages if someone loses or damages their belongings on your property or around its whereabouts. This policy will provide settlements paid to claimants in such instances.
Commercial Property Insurance
Commercial property insurance helps protect your business assets from any damage or theft. For example, if the owned or rented building where you run your business operations catches fire and gets damaged, or if the critical equipment within your commercial property gets stolen, then this insurance will help reimburse the cost of repairs or replacement, along with the income that was lost. Any business that has physical assets on its property should always look into getting commercial property insurance.
Professional Liability Insurance
Professional liability insurance – also called errors and omissions insurance – is a type of insurance that protects businesses from the cost of damages or injuries that can occur as a result of the professional services that a business provides.
For example, if you have a client for whom you need to provide goods or services, The goods or services were delivered; however, later, the client claimed that you did not do a good job or did not carry out the provided instructions right, because of which the client faced a significant loss on their part.
The client may sue you for this, and the professional liability will then help protect you against the lawsuits that may arise as a result of malpractice negligence by paying the benefits, which will cover lawsuit settlements and legal fees.
Worker’s Compensation Insurance
This type of insurance will help cover the medical expenses or the lost wages for an employee who was injured while working within your business set-up or for your business operations. The worker’s compensation insurance, hence, helps protect against on-job injuries, which will provide the employees with all medical expenses and an income replacement until they are fit to return to work.
Commercial Auto Insurance
Commercial auto insurance is a type of insurance that will cover any cost of damage to which a vehicle for your business may pertain. Hence, while running any operations or tasks, if a vehicle of your business is damaged, this insurance policy will reimburse you for the cost to either get the vehicle fixed or buy a new one, depending on the damage.
Moreover, suppose you or any other employee was also involved in the accident where the vehicle was damaged and got injured. In that case, this policy will also work towards covering any medical expenses for it and the lost wages for the employee. Therefore, any business that has vehicles on board needs commercial auto insurance for sure.
Commercial Umbrella Insurance
Commercial insurance is an insurance type that is designed to cover risks that are not covered by any other type of business insurance. This means if you or your business is sued, and your general liability insurance has maxed out on the coverage, the commercial umbrella insurance will step up and help cover the expenses.
Hence, you will not have to pay out of your pocket and can minimize any financial losses that stem from lawsuit settlements that exceed other business insurance coverage limits.
Cyber Liability Insurance
Cyber liability insurance – also called cybersecurity insurance – is a type of insurance that is designed to cover liability and property losses related to the electronic transfer or sharing of data.
Given that the technology world is evolving, and the threat to data online is at risk all the time, this type of insurance is becoming increasingly important. This type of insurance protects businesses from any electronic or digital data theft. Moreover, it also comes in handy if the hackers compromise the data.
Wrapping Up!
Businesses should always form safe barriers through insurance policies to protect themselves from any impending risk. If you are a new business owner or someone who recently launched a startup, then we hope this article was helpful for you in understanding the different types of insurance that you can opt for. Let us know which insurances out of our list got to you and which one you would be picking.
