5 Common Types Of Business Insurance
When it comes to running a business, business insurance is an expense that shouldn't be overlooked. Business insurance helps protect your business from risk, which is why it is important to understand the type of business insurance on the market so you can identify the type of insurance that is best for your business.
Type #1: General Liability Insurance
The first type of insurance you should be aware of is general liability insurance. General liability insurance is a type of insurance that applies to every type of business model. General liability insurance policies are designed to cover a large degree of risk.
With this type of policy, you are protected against claims of medical expenses, property damage, bodily injury, slander, and libel. This type of insurance will provide you with a legal defense, and if necessary, will pay a settlement or judgment in a legal case.
Type #2: Product Liability Insurance
If you sell a product, then you should look into product liability insurance. This type of insurance is best for businesses involved in the manufacturing, wholesale, distribution, or retail end of selling and creating a product for the general market.
When you sell a product, you need to be able to protect yourself in the event that someone is injured due to a product your business is involved in.
Type #3: Professional Liability Insurance
If your business doesn't sell a product but instead sells a service, you are going to want to get professional liability insurance. With professional liability insurance, this type of insurance protects you in the event the service you provide results in a financial loss.
The financial loss could be a result of negligence, malpractice, or just a simple error. When delivering a service, things can go wrong, and professional liability insurance can protect you.
Type #4: Commercial Property Insurance
Another type of business insurance is commercial property insurance. This is a type of insurance you need if you have lots of physical assets, which can include things such as equipment, products, and property.
Commercial property insurance is similar to homeowner's insurance, in that it covers you in the event of damage caused by things such as hail, fire, smoke, and theft.
Type #5: Business Owner's Policy
A business owner's policy is generally used by small business owners, from home-based businesses to businesses with a small number of employees.
This type of insurance policy is a bundled insurance policy that combines property and liability insurance into one package. It is kind of like a bundled package that makes insurance more affordable for small business owners.
When it comes to running a business, you need to make sure you have the right business insurance coverage. Talk with a commercial insurance agent in order to find the right coverage.